Oil and Natural Gas Corporation Directors Report, ONGC Reports by Directors

Oil and Natural Gas Corporation

BSE: 500312|NSE: ONGC|ISIN: INE213A01029|SECTOR: Oil Drilling And Exploration
Dec 09, 16:00
4.85 (1.61%)
VOLUME 1,331,805
Dec 09, 15:59
3.5 (1.15%)
VOLUME 3,341,555
Download Annual Report PDF Format 2015 | 2014 | 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '15    « Mar 14
Dear Members,
 It gives me great pleasure to present, on behalf of the Board of
 Directors of your Company, the 22nd Annual Report on the business and
 operations of Oil And Natural Gas Corporation Ltd. (ONGC) and its
 Audited Statements of Accounts for the year ended March 31, 2015,
 together with the Auditors'' Report and Comments on the Accounts by the
 Comptroller and Auditor General (CAG) of India.
 Your Company along with its group companies has registered yet another
 year of sustained performance.  Exploration and production of crude oil
 and gas, our core business, set various milestones during the year.
 Besides that performance in the areas where ONGC has engaged
 substantially also witnessed success with positive contributions.
 ONGC has steadfastly focussed on organic growth through its exploratory
 endeavours and build a healthy reserve profile for the future. During
 FY''15, the Company registered Reserve Replacement Ratio (RRR) of 1.38
 (with 2P reserves) with 22 oil and gas discoveries in various basins of
 the country. This has been possible because of extensive exploration in
 known basins as well as frontier plays.  Domestic crude oil and natural
 gas production of ONGC along with its share in the domestic joint
 ventures (PSC-JVs) during FY''15 has been 49.46 million metric tonnes of
 oil and oil equivalent gas (MMtoe) which is about 2.7% lower than FY''14
 production (50.84 MMtoe). On standalone basis crude oil production from
 ONGC operated fields has been 22.26 million metric tonnes (MMT) against
 production of 22.25 MMT during FY''14. This goes to the credit of your
 Company that production decline could be arrested due to prudent
 reservoir management practices adopted in the matured fields and
 bringing new fields on stream.
 Major Highlights: FY''2014-15
 Salient highlights with respect to performance of your Company during
 FY''2014-15 are as below:
 * 22 oil & gas discoveries in domestic acreages with accretion of 61.05
 MMToe of 2P reserves.
 * RRR (2P) for FY''2014-15 was 1.38; in excess of One consecutively for
 9 years.
 * Despite natural decline in matured fields, crude oil production from
 domestic fields maintained at 25.94 MMT Major upside in production was
 registered from the Western offshore fields with incremental oil gain
 of 4.3%.
 * New and marginal fields contributed about 12.3% of crude oil (2.74
 MMT out of 22.26 MMT from domestic operated fields) and 15.2% of
 natural gas production (3.35 BCM out of 22.02 BCM from domestic
 operated fields). 34.5% of crude oil production was contributed by the
 IOR/EOR and redevelopment schemes.
 * The gross revenue from operations during FY''2014-15 has been Rs.
 830,935 million; 1.3% lower than FY''14.
 * Rs. 362,996 million contribution towards sharing the under-
 recoveries of OMCs during FY''2014-15 impacting ONGC''s Profit Before Tax
 (PBT) by Rs. 309,596 million and Profit After Tax (PAT) by Rs. 204,370
 million. Despite this Net Profit has been Rs. 177,330 million; 19.7%
 lower than the profit during previous year FY''2013-14.
 * Hon''ble Prime Minister Mr. Narendra Modi dedicated the 2nd unit of
 OTPC Power Plant at Palatana, Tripura, to the Nation on December
 1,2014. The 726.6 MW gas-based power plant of ONGC Tripura Power
 Company is the biggest project in North East part of India in terms of
 investment in E&P, gas and power transmission. It is also credited as
 the largest Clean Development Mechanism (CDM) projects of the world.
 * Your Company decided to invest Rs. 249,000 million in five major
 projects in estern Offshore for sustaining crude oil and gas
 * HRD process platform of ONGC was installed successfully on January
 15, 2015 using the state-of-the- art Float-Over technology. This is the
 first such endeavour in the history of ONGC, where installation of an
 add-on platform with the existing operational platform has been
 completed successfully.
 * The operationalization of FPSO at Cluster-7 project on February 26,
 2015 resulted in doubling the crude oil production from around 7,500
 barrels per day (bpd) to around 15,000 bpd.
 * ONGC Videsh Ltd. (100% subsidiary of your Company) registered 8.87
 Mmtoe of O OEG production during FY''2014-15 against 8.36 Mmtoe during
 FY''2013-14.  Production upside primarily came from BC-10 field in
 Brazil, blocks in Myanmar and the Sakhalin project in Russia.
 * Despite higher production, ONGC Videsh''s Revenue during FY''2014-15
 has been down by 14% due to lower oil prices globally. PAT has been
 down by 57% due to lower oil prices, exchange losses, higher financing
 cost and higher depletion charges.
 * During the year ONGC Videsh made a maiden venture in New Zealand with
 exploratory acreages.
 Offshore: 10; Onshore: 12
 New Prospects: 10; New Pool: 12
 NELP Blocks: 7; Nomination blocks: 15
 * MRPL commissioned all the units under Phase-III refinery expansion
 project during the year and registered the highest-ever thru-put of
 14.65 MMT
 * Turnover of MRPL for the year was down by 17% due to lower products''
 prices and it registered a net loss of Rs. 11,700 million against Net
 profit of Rs. 6,010 million in FY''2013-14 due to exchange and inventory
 Besides excellence in core operational activities your Company
 positioned itself as a valuable corporate citizen through its mapped
 defined actions towards inclusive growth of the Society/Community and
 green initiatives as per the commitment and our performance was
 globally recognized. ONGC was ranked at 183rd position among 2000 top
 global companies in Forbes Global 2000 list published in May''2015. In
 the global oil and gas operation industry, ONGC has moved up three
 places to occupy the 18th position. ONGC has been ranked as the Top
 energy company in India, in the coveted Platt''s Top 250 Global Energy
 Company Rankings 2014. ONGC improved upon its global ranking by a notch
 to be positioned 21st among the global energy majors. ONGC has also
 maintained its position as the 3rd largest Exploration and Production
 (E&P) company in the world. In the latest Newsweek Green Rankings, the
 world''s most recognized assessment of corporate environmental
 performance, ONGC has made a quantum leap to be ranked 217 globally (it
 was positioned 386th in 2012 Green rankings). The company now stands
 third amongst only seven Indian companies named in the prestigious
 Performance 2014-15 Exploration
 During the year 2014-15, ONGC has made 22 Oil and gas discoveries in
 domestic acreages (operated by ONGC). Out of 22, 10 discoveries are in
 Offshore and 12 in Onshore; 10 discoveries were made in the new
 prospects whereas 12 were new pool discoveries. 7 discoveries were made
 in NELP blocks and 15 in nomination blocks.
 Two discoveries (Rudrasagar-184 & Gandhar-699) during 2014-15 in
 nomination blocks have already been put on production and efforts are on
 for bringing the other discoveries on production as early as possible. 7
 discoveries in NELP blocks (5 Onland, 2 Offshore) are governed by the
 PSC guidelines and appraisal/ development activities will be taken up
 keeping in view the timelines of the respective blocks. In addition to
 these discoveries, exploratory wells conclusively tested and proved to
 be hydrocarbon bearing will help in field growth of existing fields.
 Details of the discoveries are as under:
 Sr. Well No.                              Basin/               Type of
                                         Sub-basin          Hydro-carbon
 1   Tukbai-3A (TK-3A)                  AAFB-Cachar                 Gas
 2   Rupal-2*                                                       Oil
 3   Vadatal-10 (VDAH)*                    Cambay                   Oil
 4   Vadatal-11*                                                    Oil
 5   Thirunagari / Thirunagari-1*       Cauvery(On)                 Gas
 6   South Pasarlapudi-1                 KG(On)               Oil & Gas
 7   YS-9-1 (Shift)                        KG(S)                    Gas
 8   GD-11 / GD-11-1                      KG(DW)                    Gas
 9   GKS092NAA-1*                          Kutch                    Gas
 10  GKS091NDA-1*                        Offshore                   Gas
 11  C-1-7                               Mumbai               Oil & Gas
 12  C-1-8                               Offshore             Oil & Gas
 13  Rudrasagar / Rudrasagar-184                                    Oil
 14  Khoraghat-35                     A&AA (Assam)            Gas & Cond.
 15  Khoraghat-37                                                 Gas
 16  Gandhar-699                         Cambay                   Oil
 17  Madanam / Madanam-6*            Cauvery Onshore           Oil & Gas
 18  Damoh / Damoh-4                     Vindhyan                 Gas
 19  GS-29-10 (AJ)                       KG  (SW)              Oil & Gas
 20  G-1-NE-1                            KG   (S)              Oil & Gas
 21  G-1-NE-2                            KG   (S)             Gas & Cond.
 22  WO-5 / WO-5-11                  Mumbai Offshore           Oil & Gas
 Sr.    Well No.                                Type of discovery
 1   Tukbai-3A (TK-3A)                              New Prospect
 2   Rupal-2*                                       New Prospect
 3   Vadatal-10 (VDAH)*                             New Prospect
 4   Vadatal-11*                                    New Prospect
 5   Thirunagari / Thirunagari-1*                   New Prospect
 6   South Pasarlapudi-1                            New Prospect
 7   YS-9-1 (Shift)                                 New Prospect
 8   GD-11 / GD-11-1                                New Prospect
 9   GKS092NAA-1*                                   New Prospect
 10  GKS091NDA-1*                                   New Prospect
 11  C-1-7                                          New   Pool
 12  C-1-8                                          New Pool
 13  Rudrasagar / Rudrasagar-184                    New Pool
 14  Khoraghat-35                                   New Pool
 15  Khoraghat-37                                   New Pool
 16  Gandhar-699                                    New Pool
 17  Madanam / Madanam-6*                           New Pool
 18  Damoh / Damoh-4                                New Pool
 19  GS-29-10 (AJ)                                  New   Pool
 20  G-1-NE-1                                       New   Pool
 21  G-1-NE-2                                       New   Pool
 22  WO-5 / WO-5-11                                 New Pool
 * In NELP blocks
 Details of the discoveries in NELP blocks (since inception till
 Out of the 114 NELP blocks awarded to/ acquired by ONGC as operator,
 currently ONGC is operating in 49 blocks, balance 65 blocks have been
 relinquished. Exploration/ appraisal programme is underway in all the
 active blocks. A total of 47 discoveries as on date (16 in deep-water,
 13 in shallow water and 18 in onland) have been made by ONGC in 22 of
 these NELP blocks (6 deep-water, 6 shallow water & 10 onland).
 Commencement of production from these discoveries is governed by
 stipulations laid down in the respective PSCs and is to be taken up
 after successful completion of appraisal programme followed by
 submission of DOC and approval of Field Development Plan. ONGC has put
 three NELP Blocks on Commercial Production:
 a.  NELP Block CB-ONN-2004/1 (Karannagar)
 Onshore NELP Block CB-ONN-2004/1 (Karannagar) located in Ahmedabad was
 put on commercial production on 24.03.2015 within 24 hours of getting
 the Mining Lease. This NELP block was awarded to consortium of ONGC and
 GSPC in VI round of NELP bidding in 2007. ONGC is the operator of block
 with 60% participatory interest.
 b.  NELP block CB-ONN-2004/2 (Vadatal)
 Vadatal-1 in the NELP block CB-ONN-2004/2 (Vadatal) was put on
 production on March 26, 2015. The NELP block CB-ONN-2004/2 was awarded
 to a consortium of ONGC and GSPC in VI round of NELP bidding in 2007.
 ONGC is the operator of the block (PI: 55%) with partner GSPC (PI: 45
 c.  NELP block CB-ONN-2002/1 (West Patan)
 West Patan #3 well in the NELP block CB-ONN-2002/1 (West Patan) was put
 on commercial production on 31.03.15 on the same day of getting the
 Mining Lease from the Govt. of Gujarat. The block CB-ONN-2002/1,
 covering 135 sq. km and falls in the northern part of the Cambay Basin
 and is located west of Patan town in North Gujarat.
 Reserve accretion & Reserve Replacement Ratio (RRR)
 Continuing exploration in challenging and frontier areas, your company
 has accreted 215.65 million metric tonnes of oil equivalent (MMtoe) of
 In-place volume of hydrocarbon in the domestic basins (operated by
 ONGC). As on 01.04.2015, in-place hydrocarbon volume of ONGC as a group
 stands at 9,283.84 MMtoe; up 4.2% from FY''2013-14 figure of 8,912.81
 MMtoe. The ultimate reserves (3P) accretion in domestic area (ONGC
 operated) during FY''2014-15 has been 70.98 MMtoe and 2P reserve
 accretion has been 61.06 MMtoe. Total reserve accretion during 2014-15
 in domestic basins including ONGC''s share in PSC JVs stands at 60.03
 MMtoe. Voluntary disclosures in respect of Oil & Gas Reserves,
 conforming to SPE classification 1994 and US Financial Accounting
 Standards Board (FASB-69) have been made by your Company.
 The following table gives the details of reserve accretion (2P) for the
 last 5 years in domestic basins as well as from the overseas assets:
            Ultimate Reserve (2P) accretion O OEG            (in MMToe)
 Year           Domestic          ONGC''s share in                Total
                Assets            Domestic JVs                  Domestic
                      (1)            (2)                (3) = (1)   (2)
 2010- 11         63.09              0.29                      63.38
 2011-  12        58.67              1.43                      60.1
 2012-  13        67.59              4.23                      71.82
 2013-  14        56.26              4.29                      60.55
 2014-  15        61.06             -1.03                      60.03
            Ultimate Reserve (2P) accretion O OEG            (in MMToe)
 Year                               ONGC VIDESH''s           Total
                                    Share in
                                    Foreign Asset        (5)=(3)   (4)
 2010- 11                             54.2                117.58
 2011-  12                            -0.06                60.04
 2012-  13                            10.09                81.91
 2013-  14                           213.24               273.79
 2014-  15                            20.03                80.06
 Note: Reserve accretion reported in terms of 2P reserves
 Statement of Reserve Recognition Accounting (RRA)
 Reserve Recognition Accounting is a voluntary disclosure towards
 recognizing income at the point of discovery of reserves and seeks to
 demonstrate the intrinsic strength of an organization engaged in
 exploration and production of hydrocarbons with reference to its future
 earning capacity in terms of current prices for income as well as
 expenditure.  This information is based on the estimated net proved
 reserves (developed and undeveloped) as determined by the Reserves
 Estimates Committee of the Company.
 As per FASB-69 on disclosure about Oil and Gas producing activities,
 publicly traded enterprises that have significant Oil and Gas producing
 activities, are to disclose with complete set of annual financial
 statements, the following supplemental information:
 a) Proved Oil and Gas reserve quantities
 b) Capitalized costs relating to Oil and Gas producing activities
 c) Cost incurred for property acquisition, exploration and development
 d) Results of operations for Oil and Gas producing activities
 e) A standardized measure of discounted future net cash flows relating
 to proved Oil and Gas reserve quantities
 Your Company has disclosed information in respect of (a) to (d) above
 in the Annual Financial Statements.
 Your Company has also made voluntary disclosure on standardized measure
 of discounted future net cash flows relating to proved oil and gas
 reserve at Annexure-A'' to this report as statement of Reserve
 Recognition Accounting (RRA).
 Oil & Gas production
 During FY ''15, your Company retained its position as the largest
 producer of oil and gas in the country and contributed 69 per cent of
 oil and 70 per cent of natural gas production of the country from its
 domestic operations. On standalone basis, in FY''15 ONGC''s domestic crude
 oil production registered 22.26 MMt against 22.25 MMt in FY''14,
 reversing the production decline in domestic fields. The major
 contribution came from Western Offshore, which produced 4.3 per cent
 more than the production during last year. Details of crude oil and
 natural gas production from domestic basins along with that of Value
 Added Products (VAP) are as below:
                    Unit         Production Qty            ales Qty
                                FY''15       FY''14      FY''15       FY''14
 Crude Oil         (MMT)        25.94       25.99      24.11       23.61
 Natural Gas       (BCM)        23.52       24.85      17.98       19.63
 Ethane/Propane    000  MT        339         430        337         428
 LPG               000  MT       1,095       1,067      1,090      1,073
 Naphtha           000  MT       1,155       1,358      1,124      1,379
 SKO               000  MT        72          84         74           85
 Sub Total
 Motor Spirit      000 KL                                0.53        0.54
 HSD               000 KL                                0.39        0.05
 Sub Total
                            (Rs. in million)
                          FY15           FY''14
 Crude Oil             536,638           25,734
 Natural Gas           187,381           83,291
 Ethane/Propane         10,064           14,837
 LPG                    34,380           30,145
 Naphtha                50,835           75,743
 SKO                     2,771            2,779
 Others                  1,359            2,124
 Sub Total             823,428           34,653
 Motor Spirit               38               41
 HSD                        22               3
 Sub Total                  60               44
 Total                  823,488         834,697
 Oil & Gas production of ONGC Group, including PSC-JVs and from overseas
 Assets for FY''15 has been 58.33 MMtoe (against 59.21 MMtoe during
 Out of the total production of 31.47 MMT of crude oil, 70.8 per cent
 production came from ONGC operated domestic fields, 17.5 per cent from
 the overseas assets and balance 11.7 per cent from domestic joint
 ventures. As far as natural gas production is concerned, majority of
 production (82 per cent) came from ONGC operated domestic fields, 12.4
 per cent from overseas assets and 5.6 per cent from domestic joint
 Production from overseas assets
 ONGC Videsh, has thirteen (13) producing assets in ten countries -
 Venezuela (1), Brazil (1), Colombia (1), Sudan (1), South Sudan (2),
 Syria (1), Vietnam (1), Mayanmar (2), Russia (2) and Azerbaijan (1).
 Total production from these overseas assets during FY''15 has been 8.87
 MMtoe of O OEG (Crude oil: 5.53 MMT & Gas: 3.34 BCM).
 Ajerbaijan has contributed 12% as compared to around 0.1% last year.
 Resumption of operations in South Sudan & Sudan has also contributed to
 this year''s increased volume contributing 13.2% this year as compared to
 8.2% last year. Russia & Vietnam continued to be the biggest contributor
 to overseas production volume with 29.4% and 23% respectively.
 Unconventional sources of energy
 ONGC plans to continue its endeavor for exploration and development of
 Unconventional & other resources like Shale Gas, CBM, etc. ONGC has
 prioritized suitable actions for exploration and exploitation of
 Non-Conventional and Alternate Sources of energy which has the
 potential to change the energy business landscape in the country as it
 is happening in the other parts of the world. The initiatives by ONGC
 in these areas are summarized below;
 a.  Shale Gas
 ONGC has the distinction of establishing the first flow of shale gas in
 the country on 25th January, 2011 from RNSG#1 well (R&D Pilot Project,
 ONGC has chalked out plan of drilling of pilot shale gas and oil wells
 in most of the identified blocks in Cambay,Krishna-Godavari,Cauvery and
 Assam &Assam-Arakan Basins. During October, 2013 Government of India
 brought out shale gas policy which allows National Oil Companies viz.
 ONGC and OIL to initiate shale gas and oil assessment activities in
 their allocated nomination blocks in phased manner. As per the new
 Policy, 50 nomination PML blocks have been identified in four Basins -
 28 PMLs in Cambay, 3 PMLs in A&AA, 10 PMLs in Krishna-Godavari and 9
 PMLs in Cauvery basins for Shale Gas assessment within three year period
 of Phase-I. A total of 57 pilot/assessment wells are to be drilled by
 April, 2017
 During 2014-15, ONGC has drilled five exploratory wells for shale gas
 exploration (4 dual and 1 exclusive) in Cambay, Cauvery,
 Krishna-Godavari and Assam- Arakan Basins and samples have been
 collected for assessment of Shale Gas potential. Most of the studies in
 wells drilled last year have been completed and the integration/
 assessment exercise is in progress. Based on the review of data
 collected in wells JMSGA and GNSGA, prospective intervals have been
 identified in Cambay Shale which are planned to be hydro- fractured
 shortly. Presently, 2 Shale gas wells (GNSGB & GNSGC, Cambay Basin) and
 1conventional well with dual objective (WPGAA,KG Basin) are under
 b.  Coal Bed Methane (CBM)
 Of the total thirty-three CBM Blocks awarded by GOI to various
 operators through four rounds of bidding and nomination, ONGC was
 awarded nine CBM blocks.  Due to poor CBM potential, concluded on the
 basis of the data generated in the exploratory activities, five Blocks
 viz. Satpura (Madhya Pradesh), Wardha (Maharashtra), Barmer-Sanchor
 (Rajasthan), North Karanpura (West) and South Karanpura (Jharkhand)
 have been relinquished.
 Currently, ONGC is operating four CBM Blocks i.e., Jharia, Bokaro, North
 Karanpura (Jharkhand) and Raniganj (West Bengal),FDP of which has been
 approved. Nearly 400 wells and 2000 hydro-fracturing jobs have to be
 carried out in the coming 4-5 years as per timelines of the CBM
 Contract. In view of the mammoth and time bound task, ONGC is in the
 process of farming out its participative interest (PI) to experienced
 CBM players through formation of JV. Farm out Agreement (FoA) for North
 Karanpura Block has been signed on October 7, 2014 with M/s Prabha
 Energy Pvt. Ltd (PEPL) with assignment of 25% PI from ONGC''s share.
 Documents have been submitted to DGH for Government''s approval of PI
 assignment. Joint Venture for farming out in Bokaro Block is being
 negotiated. Further, offers for formation of Joint Venture for Jharia
 and Raniganj blocks are being invited.
 Sale of incidentally CBM gas from existing wells at Parbatpur of Jharia
 block is continuing and as on April 1, 2015 cumulative gas supply has
 been 13,875,102 SCM.
 c.  Underground Coal Gasification (UCG)
 ONGC with GIPCL selected Vastan Mine block site in Gujarat as an R&D
 project to establish UCG technology.  All the ground work and inputs
 for construction and implementation of UCG Pilot Project at Vastan, has
 been completed and further development is awaiting award of Mining
 Lease by Ministry of Coal (MoC), GoI.
 Further, a number of sites have been jointly identified by ONGC &
 Neyveli Lignite Corporation Limited (NLC) for studying their
 suitability to UCG. These are Tadkeshwar in Gujarat and Hodu-Sindhari &
 East Kurla in Rajasthan. One more site was jointly identified by ONGC &
 GMDC viz. Surkha in Bhavnagar district, Gujarat. The data of all the
 fields have already been analyzed for evaluating the suitability of
 these sites for UCG. All the sites have been found suitable for UCG
 Oil & Gas Projects
 In recent years your Company took up 15 projects for development of 39
 new/marginal oil and gas fields with an investment of Rs. 386,024
 million. Out of these 15 projects, 11 projects have already been
 completed.  Production from development of G-1 & GS-15 fields has
 already commenced. Rest three projects, Development of WO-16 Cluster,
 C-26 Cluster and B-127 Cluster, are under implementation and are
 expected to be completed in FY''17. Further, Improved Oil Recovery
 (IOR), Enhanced Oil Recovery (EOR) and redevelopment projects were also
 taken up by your Company for prudent reservoir management and arresting
 decline from matured fields. 21 of 26 such projects have so far been
 completed. Two projects i.e., Heera & South Heera Redevelopment
 Project and Development of Western Periphery of Mumbai High South
 project is likely to be completed by Mid FY''16 and the remaining three
 projects i.e., Redevelopment of Mumbai High North Phase-III,
 Redevelopment of Mumbai High South Phase-III and Additional
 development of Vasai East will be completed by the year 2017-18.
 Details about the projects completed during the year 2014-15, new
 projects taken up are given as below:
 Oil and Gas projects completed during FY''2014-15
 The following eight major field development and other projects were
 completed during the year 2014-15:
 Sl.  Name of Projects                    Completion/            Total
 No                                       Commencement         Investment
                                          of production       Rs. million
 1    Development of SB-14                April, 2014           4,104
 2    MHN Redevelopment Phase-II           June, 2014          71,334
 3    MHS Redevelopment Phase-II           June, 2014          88,134
 4    Development of B-46                  June, 2014          14,570
      Cluster Fields
 5    Fire Water Network at Uran           July, 2014           1,717
 6    Development of C                     July, 2014          36,904
      Series fields (C-24 Cluster)
 7    Development of B-22                  July, 2014          29,208
      Cluster fields
 8    Additional Development               July, 2014          23,316
      of NBP (D-1) field
 Sl.  Name of Projects
 No                                      Envisaged oil & gas gain
 1    Development of SB-14              0.197 MMm3 of condensate & 1.641
                                        BCM of gas in its project life of
                                        12 years
 2    MHN Redevelopment Phase-II        17.354 MMT of oil and 2.987 of
                                        gas BCM respectively by 2029-30
 3    MHS Redevelopment Phase-II        18.31 MMT of oil and 2.70 BCM of
                                        gas by 2029-2030
 4    Development of B-46               5.273 BCM of gas & 1.68 MMm3 of
      Cluster Fields                    condensate in its project life of
                                        12 years
 5    Fire Water Network at Uran        For safe operations
 6    Development of C                  10.771 BCM of gas and 2.166  MMT
      Series fields (C-24 Cluster)      of condensate by 2024-25
 7    Development of B-22               2.46 MMT of oil, 1.13 MMT of
      Cluster fields                    condensate and 6.56 BCM of gas by
 8    Additional Development            8.296 MMT of oil by 2024-25
      of NBP (D-1) field
 Projects brought to production in FY''2014-15
 Production commenced from following six projects during the year
 Sl.       Fields        Project                        Date of
 No                                                     Commencement
                                                        of production
 1.        SB-14         Development of                 7th April, 2014
                         SB-14 field
 2.        BHE           Development of BHE &           4th April, 2014
                         BH-35 fields
 3.        WO-24         Development of                 10th June, 2014
                         Cluster-7 fields
 4.        B-193         Development of B -193          26th May, 2015
                         Cluster fields
 5.        B-178         Development of B -193          25th May, 2015
                         Cluster fields
 6.        B-179         Development of B -193          24th May, 2015
                         Cluster fields
 Sl.   Name of Projects             Approved Cost       Incremental Oil
 No                                 (Rs. million)       & Gas gain
 1     MHN Redevelopment            58,133              6.997 MMT of Oil
       Phase-III                                        and 5.253 BCM of
                                                        gas by the year
 2     MHS Redevelopment            60,688              7.547 MMT of oil
       Phase-III                                        and 3.864 BCM of
                                                        gas by the year
 3     Additional Development       24,768              1.827 MMT of Oil
       of Vasai                                         and 1.971 BCM of
                                                        gas by the year
 4     Integrated Development       60,861              5.01 MMm3 of
       of Daman                                         condensate and
                                                        27.67 BCM of gas
                                                        by the year
 5     Enhanced Recovery from       46,199              19.36 BCM of gas
       Bassein field through                            1.97 Mm3 of
       Integrated Development                           condensational,
       of Mukta, Bassein & Panna                        0.183 mmt of oil
                                                        till 2027-28
 6     Pipeline replacement         28,999
       Total                        279,648
 1.  Financial Results
 Despite volatile markets and sharing under-recoveries of Rs. 362,996
 million during the year 2014-15, your Company has earned a Profit After
 Tax (PAT) of Rs.177,330 million, down 19.74% over FY 2013-14 (Rs.
 220,948 million). During 2014-15, your Company registered Gross revenue
 of Rs. 830,935 million, down 1.32 % over 2013-14 (Rs. 842,028 million).
 *   Gross Revenue                            :     Rs. 830,935 million
 *   Profit After Tax                         :     Rs. 177,330 million
 *   Contribution to Exchequer                :     Rs. 421,074 million
 *   Return on Capital Employed               :     33.2 %
 *   Debt-Equity Ratio                        :     0.0096 :1
 *   Earnings Per Share (Rs.)                 :     20.73
 *   Book Value Per Share (Rs.)               :     168
 Particulars                                     2014-15         2013-14
 Revenue from operations                         830,935         842,028
 Other Income                                    53,666          67,132
 Total Revenues                                  884,601         909,160
 Profit Before Interest,
 Depreciation & Tax (PBIDT)                      380,163         433,582
 Profit Before Tax (PBT)                         265,552         324,319
 Profit After Tax (PAT)                          177,330         220,948
 Interim Dividend                                77,000          79,138
 Proposed Final Dividend                          4,278           2,139
 Tax on Dividend                                 16,256          13,807
 Transfer to General Reserve                     79,796          125,864
 TOTAL                                           177,330         220,948
 The decrease in Profit during FY 14 -15 as compared to FY 13-14 is
 mainly due to higher exploratory wells written off and reduction in
 quantity sold as well as lower price realization of value added
 Pursuant to first proviso to sub-section (3) of Section 129 read with
 Rule 5 of Companies (Accounts) Rules, 2014, a separate statement
 containing the salient features of the financial statement of its
 subsidiaries, associate company and joint venture in Form AOC-1 forms
 part of the Financial Statements.
 2.  Dividend
 Your Company paid interim dividend of Rs. 9.00 per share (180 per cent)
 in two phases(''5.00 and Rs. 4.00). The Board of Directors has
 recommended a final dividend of Rs. 0.50 per share(10 per cent) making
 the aggregate dividend at Rs. 9.50 per share (190 per cent) for FY
 14-15 i.e. same as compared to dividend for the year 2013-14. The total
 dividend will be Rs. 81,278 million, besides Rs. 16,256 million as tax
 on dividend amounting to 55% of PAT
 3.  Management Discussion and Analysis Report
 As per the terms of Clause 49VIIID of the Listing Agreement with the
 Stock Exchanges, the Management Discussion and Analysis Report (MDAR)
 has been included and forms part of the Annual Report of the Company.
 4.  Financial Accounting
 The Financial Statements have been prepared in accordance with the
 Generally Accepted Accounting Principles (GAAP) and in compliance with
 all applicable Accounting Standards and Successful Efforts Method of
 accounting as per the Revised Guidance Note on Accounting for Oil & Gas
 Producing Activities issued by The Institute of Chartered Accountants of
 India (ICAI) effective from 01.04.2013 and provisions of the Companies
 Act, 2013. Further, as per Ministry of Corporate Affairs (MCA)
 notification, the financial statements have been prepared under the
 Schedule III format of the Companies Act, 2013.
 Loans, Guarantees or Investments
 ONGC is engaged in Exploration & Production business which is covered
 under the exemption provided under Section 186(11) of the Companies
 Act, 2013. Accordingly, the details of loans given, investment made or
 guarantee or security given by the company to subsidiaries and
 associates is not required to be reported.
 Related Party Transaction
 Particulars of contracts or arrangements with related parties referred
 to in Section 188 of the Companies Act, 2013 in the form AOC-2 form
 part of Board''s Report and placed at Annexure-B.
 5. Subsidiaries
 I ONGC Videsh Limited (ONGC Videsh)
 Videsh, the wholly-owned subsidiary of your Company for E&P activities
 outside India, has participation in 36 projects in 17 countries viz.,
 Azerbaijan, Bangladesh, Brazil, Colombia, Iran, Iraq, Kazakhstan,
 Libya, Mozambique, Myanmar, New Zealand, Russia, South Sudan, Sudan,
 Syria, Venezuela and Vietnam. Out of 36 projects, 13 are producing, 4
 are discovered/ under development, 17 are exploratory and remaining 2
 are pipeline projects.
 ONGC Videsh is currently producing about 167 thousand barrels of oil
 and oil equivalent gas per day and has total oil and gas (2P) reserves
 of about 612 MMtoe as on 31st March 2015. During FY''15, there is an
 increase in oil and gas production by 6.19% (Oil 0.86% and Gas 16.37%)
 as compared to previous fiscal year. The incremental production is
 primarily due to better management of fields and addition in the
 ONGC Videsh''s share in production of oil and oil equivalent gas
 (O OEG), together with its wholly-owned subsidiaries, ONGC Nile Ganga
 B.V, ONGC Amazon Alaknanda Limited, Imperial Energy Limited and
 Carabobo One AB, was 8.874 MMtoe during FY15 as compared to 8.357 MMtoe
 during FY 14. The oil production increased from 5.486 MMT during FY''14
 to 5.533 MMT during FY''15 (0.86% higher) primarily due to increased
 share of additional 12% PI in Block BC-10, Brazil.
 During FY''15, the company has earned profit after tax of Rs. 19,042
 million, a decrease of 57% as compared to FY''14.  Despite higher
 production during FY''15, the decrease in profit is mainly due tolower
 oil prices, higher financing cost including exchange loss, higher
 depletion charge, and impairment provision in one of the assets.
 (A) Significant Acquisitions, Alliances and Operations highlights of
 ONGC Videshduring FY''15 are as follows:
 a) Block PEP 57090, New Zealand: ONGC Videsh was awarded an exploration
 permit PEP 57090 in the Taranaki offshore basin by Government of New
 Zealand on 9th December, 2014. ONGC Videsh has now started operations
 in Pacific Region.
 b) During FY''15, ONGC Videsh has signed the following MoUs:
 (i) MoU with ROSNEFT was executed on 24th May, 2014 for cooperation in
 subsurface surveys, exploration and appraisal activities and
 hydrocarbon production in Russia''s offshore Arctic.
 (ii) MoU with TPAO (the Turkish Petroleum Company) was executed on 18th
 June 2014 for working together for E&P activities in Turkey, joint
 participation in bidding for opportunities including exploration bid
 rounds in third countries and pursuit of hydrocarbon opportunities
 related research and development activities.
 (iii) MoU with YPF S.A. Argentina was executed on 1st September, 2014
 for working to explore possibility of cooperation in the areas of
 Unconventional and Conventional Hydrocarbon Assets in Argentina, E&P
 activities in India and in third countries, research & development
 activities and human resources development.
 (iv) Lol with Petro Vietnam was executed on 15th September, 2014, for
 expansion of exploration activities by ONGC Videsh in Vietnam by
 considering participation in 2-3 additional blocks subject to technical
 and commercial viability and requisite approvals.
 (v) MoU with Pemex-Exploracion Y Production (PEP) was executed on 25th
 September, 2014, for cooperation in the hydrocarbon sector in the fields
 of technology, human resources, research & development.
 (vi) MoU with Mubadala Petroleum, UAE was executed on 29th September,
 2014, for collaboration in potential upstream oil & gas exploration,
 development and producing projects and LNG opportunities.
 (vii) HoA with PVEP was executed on 28th October, 2014, for mutual
 cooperation and participation in Blocks 102/10 & 106/10 of PVEP and
 Block 128 of ONGC Videsh in offshore Vietnam subject to due diligence
 and negotiations on the terms of participation.
 (c) Operations
 i.  In Sakhalin-1 Project, the topside of Berkut-world''s biggest
 offshore platform in Arkutun-Dagi field, was successfully floated over
 from South Korea to Russia and installed on 20th June, 2014 with
 production commencing from 5th January, 2015.
 ii.  Gas Export Pipeline Remediation project in Block BC-10, Brazil was
 successfully commissioned on 1st November, 2014 leading to gas export
 about 0.27 MMSCMD.
 iii.  In A-1/A3 Project, Myanmar, plateau gas production rate of 14.2
 MMSCMD was achieved on 2nd December, 2014.
 iv.  Oil production from Petro Carabobo, Venezuela, crossed 16,000 BOPD
 on 16th March, 2015 with average oil production of 9,775 BOPD during
 FY''15 as compared to 3,293 BOPD during FY''14.
 v.  First crude oil cargo of 1.2 million barrel of Petro Carabobowas
 lifted by RIL on 25th May, 2014 from Venezuela.
 vi.  The ongoing geo-political situation in Syria including EU
 sanctions and the resulting restrictions on contractors continue
 adversely affecting Syrian operations since December, 2011.
 vii.  The operations in South Sudan projects are temporarily under
 shutdown after internal conflicts and adverse security situation in the
 country since 22nd December, 2013. The operations in South Sudan shall
 resume once security situation improves.
 Direct Subsidiaries of ONGC Videsh
 i. ONGC Nile Ganga B.V. (ONGBV)
 ONGBV, a subsidiary of ONGC Videsh, is engaged in E&P activities in
 Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25
 per cent Participating Interest (PI) in Greater Nile Oil Project (GNOP),
 Sudan with its share of oil production of about 0.705 MMT during
 2014-15. ONGBV also holds 25 per cent PI in Greater Pioneer Operating
 Company (GPOC), South Sudan. Due to adverse geo-political conditions,
 ONGC Videsh could not produce in GPOC, South Sudan during FY''15.
 ONGBV holds 16.66 per cent to 18.75 per cent PI in four Production
 Sharing Contracts in Al Furat Project (AFPC), Syria. Due to force
 majeure condition in Syria, there was no production in AFPC project
 during FY''15.  ONGBV holds 40 per cent PI in San Cristobal Project in
 Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San
 Cristobal) BV with its share of oil production of about 0.645 MMT
 during FY'' 15. ONGBV holds 27 per cent PI in BC-10 Project in Brazil
 through its wholly owned subsidiary ONGC Campos Ltd. with its share of
 oil and gas production of about 0.854 MMtoe during FY'' 15. It also
 holds 25 percent PI in Block BM- SEAL-4 located in deep-water offshore,
 Brazil through its wholly owned subsidiary ONGC Campos Ltd.  ONGBV also
 holds 8.347 per cent PI in South East Asia Gas Pipeline Co. Ltd.,
 (SeAGP) for Pipeline project, Myanmar through its wholly owned
 subsidiary ONGC Caspian E&P B.V.
 ii. ONGC Narmada Limited (ONL)
 ONL has been retained for acquisition of future E&P projects in
 iii ONGC Amazon Alaknanda Limited (OAAL)
 OAAL, a wholly-owned subsidiary of ONGC Videsh, holds stake in E&P
 projects in Colombia, through Mansarovar Energy Colombia Limited
 (MECL), a 50:50 joint venture company with Sinopec of China. During FY''
 15, ONGC Videsh''s share of oil production in MECL was about 0.626 MMT
 iv. Imperial Energy Limited
 Imperial Energy Limited, a wholly-owned subsidiary of ONGC Videsh
 incorporated in Cyprus, has its main activities in the Tomsk region of
 Western Siberia, Russia. During FY'' 15, Imperial Energy''s oil and gas
 production was about 0.289 MMToe.
 v.  Carabobo One AB
 Carabobo One AB, a subsidiary of ONGC Videsh incorporated in Sweden,
 indirectly holds 11 per cent PI in Carabobo-1 Project, Venezuela.
 During FY'' 15, Carabobo''s oil production was about 0.066 MMT
 vi. ONGC (BTC) Limited :
 ONGC (BTC) Limited holding 2.36 per cent interest in the
 Baku-Tbilisi-Ceyhan Pipeline (BTC) owns and operates 1,768 km oil
 pipeline running through Azerbaijan, Georgia and Turkey. The pipeline
 mainly carries crude from the ACG fields from Azerbaijan to the
 Mediterranean Sea.
 vii. Beas Rovuma Energy Mozambique Limited:
 Beas Rovuma Energy Mozambique Limited was incorporated in British
 Vergin Islands (BVI) and holding 6% PI in Rovuma Area 1, Mozambique.
 viii. ONGC Videsh Atlantic Inc.:
 ONGC Videsh Atlantic Inc. is incorporated in Texas, United States of
 America, to work in co-ordination with Anadarko (Operator of Rovuma
 Area 1, Mozambique) and to establish G&G centre etc.
 ix.  ONGC Videsh Rovuma Limited:
 ONGC Videsh Rovuma Limited was incorporated in Mauritius for
 structuring of 10% PI in ONGC Videsh''s Rovuma Area 1, Mozambique.
 II Mangalore Refinery and Petrochemicals Limited (MRPL)
 Your Company continues to hold 71.62 per cent equity stake in MRPL, a
 Schedule A'' Mini Ratna, which is a single location 15 MMTPA Refinery on
 the West coast.
 Performance Highlights FY 2014-15
 MRPL achieved the highest-ever thru''put of 14.65 MMT in FY 14-15
 against 14.55 MMT in FY 13-14 .
 MRPL exported 4.98 MMT of products against 6.72 MMT in the previous
 year. The exports were low compared to the previous year due to the
 commissioning of Delayed Coker Unit and increased domestic sale of
 Kerosene and HSD .
 Crude sourcing (Receipts): 14.35 MMT; Iran (34.83 per cent), Saudi
 Arabia (19.67 per cent), ADNOC (12.12 per cent), Kuwait (15.12 per
 cent), Basrah Light (0.8 percent) Mumbai High (5.03 per cent), Ravva
 and KG basin (3.50 per cent) Sonangol (3.81 percent) Spot (5.12 per
 Marketing and Retail Operations
 MRPL continues to expand its market spread in the direct sales segment
 of petroleum products in the state of Karnataka and its adjoining
 states. MRPL has significant market share and direct customer relations
 for products such as Bitumen, Fuel Oil, Sulphur, Diesel, Petcoke and
 Mixed Xylene in its refinery zone. The total sales volume of direct
 marketing products during the FY 2014-15 was 820 TMT with a sales value
 of Rs. 22,970 million compared to volume of 507 TMT and sales value of
 Rs. 25,890 million in the previous FY 2013-14.
 Phase III - Brownfield expansion Project
 All the units of MRPLs Phase III up-gradation and expansion project
 have been commissioned . The Polypropylene unit was inaugurated by
 Hon''ble Minister (I/C) P&NG on 05-04-2015.
 Acquisition of controlling stake in OMPL
 MRPL has increased its stake in OMPL to 51 % by subscribing to the
 right issue made by OMPL Subsequently OMPL has become subsidiary of
 MRPL and a Government company under Companies Act, 2013.
 6. Annual Report of Subsidiaries and Consolidated Financial Statement
 In accordance with Section 134 of the Companies Act, 2013 and the
 Accounting Standard (As)-21 on Consolidated Financial Statements read
 with AS-23 on Accounting for Investments in Associates and AS- 27 on
 Financial Reporting of Interests in Joint Ventures, audited
 Consolidated Financial Statements for the year ended 31st March, 2015
 of the Company and its subsidiaries form part of the Annual Report.
 Full Annual Report of subsidiaries of ONGC will be made available to
 any shareholder, if he/she desires, which is also available on
 Company''s website. Further, Annual Reports of MRPL and ONGC Videsh are
 also available on website and
 7. Joint Ventures/ Associates
 i. ONGC Petro-additions Limited (OPaL)
 ONGC Petro-additions Limited (OPaL), has been promoted by your company
 asa Joint Venture (JV) Company, with envisaged equity stake of 26%
 along with GAIL (15.5%).  gSpC also has a token presence in OPaL.
 The balance equity of 58.5% is to be tied up with Strategic Partners/
 FIs / IPO.
 OPaL is a mega petrochemical project at Dahej SEZ for utilizing
 in-house production of C2-C3 and Naphtha from various units of ONGC.
 Present status
 * Overall Cumulative progress is 95 %.
 * Total cumulative expenditure as on 31st March 2015 is Rs. 213,110
 million. Approved project cost is Rs. 270,110 million.
 * Debt closure has been attained for approved project cost of Rs.
 270,110 million with the execution of Rupee Term Loan agreement.
 * Phase-wise commissioning of the complex has commenced with stabilized
 operations envisaged in Q3 2015-16.
 ii. ONGC Tripura Power Company Ltd (OTPC)
 Your Company has promoted OTPC with an envisaged stake of 50% along
 with Govt. of Tripura (0.5%) and IL&FS Energy Development Co. Ltd.
 (IEDCL-an IL&FS subsidiary) (26%); the balance 23.5% has been tied up
 with India Infrastructure Fund-II acting through IDFC alternatives
 OTPC has set up a 726.6 MW (2 X 363.3 MW) gas based Combined Cycle Power
 Plant (CCCP) at Palatana, Tripura. The basic objective of the project is
 to monetize idle gas assets of ONGC in land-locked Tripura state and to
 boost exploratory efforts in the region.
 Present Status
 * OTPC''s first unit (Unit-1) was dedicated to the Nation by the Hon''ble
 President of India on 21stJune, 2013 and its commercial operation was
 achieved on 4thJanuary 2014 in presence of representatives of
 beneficiary states. The second unit was dedicated to nation by Hon''ble
 Prime Minister of India on 1st December, 2014 and its commercial
 operation was achieved on 24th March, 2015.
 The Plant has been granted provisional tariff by Central Electricity
 Regulatory Commission (CERC). The Ministry of Power has allocated more
 than 86% of power from the project (two units) to the NER beneficiary
 states while 98 MW is allocated to OTPC for merchant sales. The OTPC
 has signed a gas sale and purchase agreement (GSPA) with ONGC for
 supplying Daily contracted Quantity of 2.65 MMSCMD of gas.
 * The 663 KM long 400 KV double circuit transmission network
 Palatana-Bongaigaon transmission has been commissioned up to Bongaigaon
 by North-East Transmission Company Limited (NETCL), a joint venture of
 Power Grid Corporation, OTPC and Governments of the North-Eastern
 states. This development is helping in evacuating power from both
 Unit-1and Unit-2.
 * The total expenditure incurred on the project till 31st March, 2015
 is Rs. 37511 million against the total estimated cost of Rs.
 iii. ONGC Mangalore Petrochemicals Limited (OMPL)
 Your company has promoted OMPL which has set up Aromatic Complex with an
 annual capacity 914 KTPA of Para-xylene and 283 KPTA of Benzene in
 Mangalore Special Economic Zone as value chain integration project of
 ONGC. The total project cost is about Rs. 68,750 million and commenced
 commercial operation from 1st October, 2014. 2,59,618 MT of Para-xylene
 and 61,788 MT of Benzene, have since been exported in the financial
 year, as the production is being ramped up. After successful
 commissioning of OMPL in October, 2014, MRPL has increased its equity
 from 3% to 51.002% in February, 2015 with balance 48.998% held by ONGC
 and thus OmPL has become a subsidiary of MRPL.
 iv. Dahej SEZ Ltd (DSL)
 Your company as Lead Promoter has developed a multi-product SEZ at Dahej
 in coastal Gujarat .Your Company is setting up C2-C3 Extraction Plant on
 its own and value-chain integration project - OPaL through JV route in
 this SEZ Area. Your company has 23% equity in the project with GIDC
 having 26% and balance 51% is proposed to be tied up through IPO /
 Strategic / Financial Investor.
 Present status:
 * SEZ is already operational and units in SEZ have clocked export of
 Rs. 19,740 million in FY 2013-14 and Rs. 21,050 million in FY 2014-15.
 v.  Mangalore Special Economic Zone Limited (MSEZ)
 With an envisaged equity stake of 26% along with KIADB (23%), IL&FS
 (50%), OMPL (0.96%) and KCCI (0.04%), ONGC has set up MSEZ to serve as
 site for development of necessary infrastructure to facilitate and
 locate ONGC/MRPLs Aromatic complex being promoted by ONGC.
 Present Status:
 Commercial Operation Date (COD) has been declared on 1st April, 2015.
 vi. Petronet MHB Limited (PMHBL)
 * PMHBL is a JV company wherein your company has an
 equity stake of 28.7% along with HPCL (28.7%) and PIL (7.9%) with
 balance 34.57per cent of equity being held by leading banks.
 * PMHBL owns and operates a multi-product pipeline to transport MRPLs
 products to the hinterland of Karnataka.
 * In FY''15 PMHBL pipeline has achieved a throughput of 3.141MMT against
 total throughput of 3.073 MMT last year. As per audited results for the
 year 2014-15, the turnover and PAT of PMHBL are Rs. 1,071 million and
 Rs. 341million respectively.
 vii. ONGC TERI Biotech Limited (OTBL)
 ONGC TERI Biotech Limited ( O T B L ) w h i c h w a s incorporated on
 26th March, 2007 is a Joint-venture Company of ONGC in association with
 The Energy Research Institute (TERI), with shareholding of 49.98% &
 48.02%, respectively. Through the efforts of joint research of oNgC &
 TERI over the years, OTBL is offering below mentioned technologies and
 providing various Biotechnical Solutions to Oil and Gas Industry, both
 in India and abroad:
 OilzapperTechnology(Bioremediation)- used to eliminate & tackle Oil
 Spills, Oily Sludge, and hazardous hydro carbon waste;
 Paraffin Degrading Bacteria (PDB)- used to prevent Paraffin Deposition
 in Oil well Tubing;
 Wax Deposition Prevention (WDP)- used to prevent Paraffin Deposition in
 surface and sub-surface flow lines; Microbial Enhanced Oil Recovery
 (MeOR)- used for Enhanced Oil Recovery by mobilizing crude oil trapped
 in pores of Oil Reservoirs.
 During 2014-15 the turnover of OTBL was Rs. 180.0 Million with Profit
 after Tax of Rs.  45.1 Million as against turnover of Rs. 141.0 Million
 and Profit after Tax of Rs. 44.8 Million in the previous year.
 viii. Petronet LNG Limited (PLL)
 ONGC has 12.5 per cent equity stake in PLL, identical to stakes held by
 other Oil PSU co-promoters viz., IOCL, GAIL and BPCL. Dahej LNG
 terminal of PLL having a capacity of 10 MMTPA is currently meeting
 nearly 20 per cent of the total gas demand of the country. Dahej LNG
 Terminal is being further expanded from 10 MMTPA to 15 MMTPA. The
 construction activities continue as planned and the project is expected
 to be completed by end 2016.
 A new LNG terminal of capacity 5 MMTPA has been set up at Kochi and has
 already been dedicated to the Nation.
 The Company is also planning to set up an LNG terminal of capacity 5
 MMTPA at Gangavaram, Andhra Pradesh. The turnover of PLL during 2014-15
 is Rs. 395,010 million and net profit is Rs. 8,825 million.
 ix.  Pawan Hans Limited (PHL)
 ONGC has 49 per cent equity stake in PHL (previously known as Pawan Hans
 Helicopters (A Government of India Enterprise) Limited). Balance 51 per
 cent equity is held by the Government of India. PHL is one of Asia''s
 largest helicopter operators having a well-balanced operational fleet of
 46 helicopters. It provides helicopter support for ONGC''s offshore
 operations. PHL was successful in providing all the 12 Dauphin N and N3
 helicopters fully compliant with AS-4 as per the new contract with ONGC.
 8.  Other New Projects/ Business initiatives C2-C3-C4 Extraction Plant
 * Your company has set up a C2, C3 and C4 Extraction Plant at Dahej
 having a capacity to process 5.0 MMTPA Rich Liquefied Natural Gas (LNG)
 from M/s Petronet LNG Limited (PLL) as feed stock, for extraction of
 C2, C3 & C4 products.
 * The plant will be commissioned shortly.
 * These extracted C2, C3 and C4 products would be feed stock for ONGCs
 promoted Joint Venture OPaL in the same SEZ at Dahej. They would form
 40 % feed stock for upcoming OPaL Project.
 * However till the starting operations and stabilization of OPaL, ONGC
 shall be producing LPG by blending C3 & C4 in the requisite ratio and
 would be sold to Oil Marketing Companies.
 9.  Alliances & Partnerships for Business Growth
 a.  MoU between ONGC, BPCL, Mitsui and NMPT
 ONGC along its consortium partners BPCL and Japanese conglomerate
 Mitsui signed a MoU with the New Mangalore Port trust (NMPT) on 18t h
 March, 2013. The MoU documents Port''s No- Objection to carry out
 feasibility studies and intention to extend all cooperation to the
 consortium in this regard. The consortium has carried out the
 pre-feasibility study of the project and found that terminal is
 technically feasible and the same had been presented to NMPT Based on
 the report, NMPT has conveyed its no objection to the consortium, for
 carrying out detailed feasibility studies for the identified locations,
 subject to adherence to navigational safety requirements. Commercial
 prefeasibility study is being carried out.
 b.  MoU for setting up a Special Purpose Vehicle (SPV) for implementing
 Renewable Energy projects
 Your company is likely to be a lead partner in a Joint Venture Company
 being set up through Special Purpose Vehicle (SPV) for implementing
 large scale grid-connected solar, wind and other renewable energy
 (including hybrid) power projects.
 An MOU for creating such a JVC was signed on 25th February, 2014
 between the Ministry of New & Renewable Energy and Ministry of
 Petroleum & Natural Gas, Govt of India.
 This JVC shall be for grid connected renewable energy and would be led
 by ONGC as the lead partner with likely 26% equity and other Oil
 upstream companies like OIL and GAIL along with EIL, IREDA and SECI as
 partners, equity percentage of each one of them to be decided later.
 Feasibility study for formation of SPV has been done by EIL and report
 has been submitted to MoPNG.
 10.  Information Technology
 Considering the need to ensure implementation of cutting edge
 technology in all areas of operations and to ensure data integrity and
 security, ONGC has deployed state-of-the-art IT tools and technologies.
 In a knowledge-driven and technology-intensive industry such as oil &
 gas E&P, information technology establishes the vital synergy across
 the company''s many locations and varied workforce, essentially serving
 as its operations'' lifeline. Many of the IT achievements of the Company
 are regarded as benchmarks in the industry in terms of implementation
 of widespread systems integration and process automation.
 Highlights for the year 2014-15
 * Consequent to allotment of transponder on GSAT 10 satellite in lieu
 of INSAT 3E by Department of Space, Govt. of India, Satcom stations
 were successfully migrated to GSAT 10 satellite using in-house
 capabilities. On the directive from MoP&NG, a meeting was held with
 representatives of Indian Space Research Organisation (ISRO) on
 05.09.2014 to work-out the use of space applications in E&P sector.
 ISRO has constituted a five member team which will interact with ONGC
 team to work-out the use of space applications in E&P sector.
 * ISO/IEC 20000: 2011 accreditation for IT Services has been extended
 to all locations covering entire ONGC, after successful external audit
 during 8th-12th September, 2014.
 * Crisis Management Plan (CMP) for Countering Cyber Attacks and Cyber
 Terrorism prepared based on CERT-In template and got validated from
 security expert of CMC and submitted to EC for approval. CMP Incident
 Management team was constituted at corporate level, which will meet
 weekly or in case of requirement, to oversee resolution of incidents
 and discuss mitigation plans for upcoming / known threats & which are
 communicated by NCIIPC, CERT-in etc.
 * Infocom has developed O Drive facility for ONGCians. With O Drive
 facility, documents can be stored in a centralized server which can be
 accessed from anywhere. This effort is alternative option to the usage
 of USB drives and thus contributes for Information security
 * Developed a complete pipeline information system In-house and rolled
 out at Mehsana& Rajahmundry Assets. The system feature includes
 facility to view other geographical information such as nearby
 locations of hospitals, schools fire stations etc., facility to measure
 distance between any two points, liquid flow direction animation etc.
 Distinctive colours adopted for different type of lines. The facility
 can be accessed from anywhere on ONGC Intranet with user login
 * Participated in the CERT-in simulated cyber- attacks based Cyber
 Security Drill on 23.12.2014, along with 47 other organizations, to
 assess ONGC preparedness to withstand the possible cyber-attacks. The
 Cyber Security Drill was completed successfully and Cyber Security
 Crisis Management Team was able to detect and analyze the incidents and
 inform CERT-in within given time.
 * A portal for Public Grievances was developed in- house to facilitate
 public to launch their complaints online. This web-based Grievance
 redressal initiative of ONGC reinforces focus on Digital India project
 which aims to leverage technology to maintain the Citizen-Government
 Interface with the highest integrity. Through this portal,
 citizen/vendor/employee/former-employee can register their grievances
 relating to any operational wing of ONGC, through an online/single
 window system. Facility available for monitoring the complaint status by
 the complainer.
 * A portal for JRM (Joint Review Meeting) of Technology and Field
 services was developed in- house to cater to the complete JRM
 requirements for conducting the meeting smoothly. JRM members can
 upload the presentations, tour program details, ATR for previous
 meetings etc.  Notifications/ messages can be generated through this
 portal and be sent as SMS as well as mail to the members.
 11. Health, Safety and Environment(HSE)
 Safety, Occupational health and protection of environment in and around
 its workingareas are prime concerns of ONGC. ONGC has implemented
 globally recognized QHSE Management System conforming to requirements
 of QHSE Certifications ISO 9001 ISO 14001 and ISO 18001(OHSAS) at ONGC
 facilities and certified by reputed certification agencies at all its
 operational units. During the year 2014-15, 412 Nos. of installations
 of ONGC were audited for certification/surveillance audit. Corporate
 guidelines on incident reporting, investigation and monitoring of
 recommendations was developed and implemented for maintaining
 uniformity throughout the organization in line with international
 A few highlights of HSE during 2014-15 are:
 * Regular QHSE internal audits
 * Fire safety measures including regular fire and earthquake mock
 * Training on HSE related topics
 * Environmental analysis
 * PME of employees and Health Awareness programs
 * Water and electricity conservation Noise and pollution reduction
 * Material Safety Data Sheets(MSDS)
 * Personal protective Equipment''s(PPE)
 * Solid waste management and Developing E- waste disposal procedure
 * Identification and implementation of Environment Management
 Programmes (EMP).
 * Occupation Health & Safety(OHS) programs as per need of the unit
 * Energy conservation awareness through display and communication
 * Accident near miss and Governance Risk Compliance (GRC) reporting.
 * Mines Vocational Training for Petty Contractual Workers
 ONGC is now an Accredited Environment Impact Assessment (EIA)
 Consultant organization by Ministry of Environment & Forest (MoEF) in
 Oil and Gas Exploration Development and Production in Offshore/Onshore
 areas and Petroleum refining industry.
 Approval by DSIR
 ONGC Institutes have received the renewal of recognition of In-house
 R&D unit by Department of Scientific and Industrial Research (DSIR) for
 a period of five years (valid till 31st March, 2018) on 26.03.2013.
 This will enable ONGC Institutes to continue claiming weighted
 deduction in Income Tax (200%) against the expenditure towards R&D
 Patenting R&D Work
 1.  One Patent proposal of IRS, Ahmedabad on Process and composition
 for cleaning scale deposits of effluent dispatch lines has been
 submitted to Centralized Patent Cell, KDMIPE in March, 2015.
 2. Patent application has been made by CEWELL for patenting the
 innovative technique for TOC estimation. The TOC estimated by this
 technique in first shale gas well matches very well with TOC data
 obtained through laboratory study on cutting samples. This validates the
 new technique developed by CEWELL and its applicability in Indian
 12. Carbon Management & Sustainability Development
 ONGC being one of the premier energy majors of the world and the
 highest profit earning PSU of India realises its responsibilities in
 ensuring sustained development through protection of the ecological
 system. It therefore strives to position itself as a leading
 organisation in sustainable management and is aiming to achieve
 sustainable development through a holistic approach to carbon
 management. ONGC believes that focused Carbon Management efforts are an
 ideal route to cover the elements of our business specific sustainable
 development issues across the environmental dimensions. A critical area
 of environmental sustainability is mitigation of global greenhouse gas
 from operations. It isan organizational objective for us to
 progressively reduce our carbon footprint by working towards reduction
 in both direct and indirect energy consumption.
 Sustainable development requires contribution of all the societal
 players and with increasingly dominant role of modern day corporates;
 they can contribute significantly towards sustainable development. ONGC
 has created a small group called Carbon Management & Sustainability
 Group with a mandate for developing CDM projects, Sustainability
 reporting, Carbon & Water Management and focussed R&D in the area of low
 carbon. The following efforts undertaken by ONGC illustrate its
 commitment to Sustainable Development:
 Project status:
 1.  Clean Development Mechanism (CDM):
 ONGC commenced its CDM journey in 2006. Till date, ONGC has registered
 12 CdM projects with UNFCCC.  2 new CDM projects validated and 2
 already registered projects successfully verified for issuance of CERs.
 Validation of New CDM projects
 1.  Gas Flare Recovery at GGS Chariali, Assam
 2.  Energy Savings by replacement of MOL pump at Neelam&Heera Asset
 Verification & Issuance of Registered CDM projects
 1.  Gas Flaring Reduction at Uran Plant
 2.  51 MW wind power project of ONGC at Surajbari
 2.  Carbon and Water Foot printing:
 Carbon Foot printing:
 GHG Accounting & GHG mitigation projects
 Comprehensive company-wide GHG accounting had been completed for the
 base year 2010-11 and it is found that ONGC has 8,234,853 and 281,178
 tons of CO2 emissions under Scope 1 - Direct Emissions and Scope 2 -
 Energy Indirect Emissions respectively.  Based on the study, 11 focus
 areas and projects have been identified. It is proposed to undertake
 the feasibility study of eleven identified GHG mitigation projects.
 Global Methane Initiative (GMI):
 The Global Methane Initiative (GMI) is an action-oriented initiative
 from United State Environmental Protection Agency (USEPA) to reduce
 global fugitive methane emissions to enhance economic growth, promote
 energy security, improve the environment, and reduce greenhouse gases
 emission. The Global Methane Initiative facilitates cooperative
 mitigation activities that result in bringing more gas to markets
 through Identification, Quantification, and Reduction (IQR) path.
 ONGC entered into a MoU with the USEPA in August 2007, to undertake
 Methane to Market (now GMI) projects in ONGC and over the years since
 its joining into the program, ONGC has formed a dedicated team and has
 procured methane emission detection and measurement equipment in order
 to undertake Fugitive Emission detection and quantification at its
 operating facilities and has reduced approx. 14 MMSCM over the years.
 This is equivalent to reductions of over 2 lakhs tCO2e emitting into
 Fugitive emission Identification & Quantification (IQ) jobs have been
 completed as per Performance Contract (PC) targets. Assam Asset,
 Ankleshwar Asset &Hazira plant were mapped for fugitive emissions. The
 reports have been submitted to respective work centres to take
 corrective actions.
 Water Foot printing:
 Sustainable water management:
 Every business depends and impacts on water resources.  The future of
 business depends on the sustainability of water resources, which are
 increasingly under pressure.  With freshwater supplies tightening due
 to overuse and more extreme weather patterns, business is coming under
 more pressure to measure and cut water use. ONGC is concerned towards
 the risks and benefits of water management and exploring new techniques
 to cut consumption. ONGC''s Sustainable Water Management policy is based
 on philosophy of 4 R i.e. Reduce, Reuse, Recycle & Replenish. CM&SG
 is entrusted with the responsibility of steering SM projects across
 ONGC.  CM&SG is working on following projects in this area:
 Water footprint study in Ahmedabad Asset and IPSHEM, Goa:
 For the first time an in-house footprint study has been done without
 engaging any external agency. The project was completed ahead of
 Setting up sea water desalination plant at Uran:
 LOA for techno-commercial and environmental feasibility study for
 proposed 20 MLD sea water desalination plant has been placed on M/s
 MECON India.
 Setting up desalination plants at ONGC work centres located near
 coastal areas and at MRPL:
 It is proposed to set up desalination plants at ONGC work centres
 located near coastal areas (Hazira Plant, Ankleshwar Asset, Cauvery
 Asset-Karaikal, Rajahmundry Asset & Eastern Offshore Asset-Kakinada)
 and at MRPL as a SWM measure, in order to mitigate future
 sustainability risk due to declining fresh water availability. It is
 proposed to initially conduct techno-commercial and environmental
 feasibility study and based on the affirmative outcome of the
 feasibility report, implementation of setting up desalination plant at
 the respective work centre may be undertaken.
 Rain water Harvesting:
 Rain Water Harvesting (RWH) projects are implemented/ being implemented
 at different work centres of ONGC under the umbrella of Sustainable
 Water Management. The harvested water is being used for beneficial use
 like gardening, toilet flushing, etc and also for recharging of ground
 water aquifers. The RWH projects have been taken up at Ahmedabad Asset,
 Tripura Asset, WOB Vadodara and IPSHEM Goa.
 Sewage Treatment Plant (STP) at Mehsana Asset:
 Administrative approval accorded for setting up three STP''s (each of
 capacity 100 KLD) at ONGC Nagar, Mehsana. Finalization of scope of work
 and tendering process is being taken up by Mehsana Asset.
 Produced Water Management at Mehsana Asset:
 CM&SG and Mehsana Asset have jointly undertaken produced water
 management in a holistic manner through a Multi-disciplinary Team (MDT)
 under sustainable water management umbrella in line with EC decision.
 Integrated Watershed/Check dam Management at Mehsana:
 ONGC as a responsible corporate wants to expand its activities in
 sustainable water management beyond its operational boundaries. As a
 first step Mehsana Asset has been chosen as it is one of the worst
 affected regions as far as water scarcity is concerned. The project
 will be a CSR project in association with CM&SG, Mehsana Asset and
 local concerned authorities. The project is at present exists as a
 concept and implementation roadmap is being worked out.
 SD through focussed R&D and collaborations
 ONGC is committed towards reduction of greenhouse gases (GHG) emissions
 and is actively pursuing various R&D projects towards CO2 capture and
 sequestration in following ways:
 * Sequestration by Algal biomass
 * Conversion into useful products
 ONGC has signed NDA (Non-Disclosure Agreement) with following Finnish
 * Ripasso Energy, Sweden in the field of Solar CSP-ST technology,
 * Chempolis, Finland in the area of 3G bio refinery.
 * Cleen, Finland in the area of CCSP, EFEU and BEST program
 * VTT, Finland in the area of water management
 At present, however, CM&SG has been pursuing the CCSP programme with
 CLEEN for the CO2 capture and reformation programme at Hazira plant.
 Setting up of 3G Bio-refinery
 ONGC is planning to setup a 3G bio-refinery (first of its kind in
 India) to meet the government mandate of E95 (blending of 5% ethanol to
 gasoline). To this effect, ONGC had signed NDA &MoU with Chempolis,
 Finland. This endeavor would create a new business dimension for ONGC.
 Chempolis had conducted feasibility study for the state of Punjab and
 the same is under consideration.
 Carbon Capture & Sequestration
 ONGC has also collaborated with CLEEN, Finland in the area of carbon
 capture and joined its program named Carbon Capture & Storage Program
 (CCSP). This program works on sharing knowledge among consortium
 members and working on the specific goals. Consortium agreement has
 been signed for ONGC specific work package at Hazira.
 Solar power CSP-ST technology
 Ripasso Energy has specific and unique expertise in the Concentrated
 Solar Power (CSP) technology. CSP technology is based on Stirling
 Engine technology, a unit has a typical power output of 30 KW. An
 inherited modular design ideally suited for volume electricity
 production with an outstanding conversion efficiency of 32%, provides a
 number of benefits compared to other solar thermal technologies. CM&SG
 is in talk with Rippaso Energy for establishing a 3MW pilot solar power
 project at Gamnewala, Jaisalmer. The project proposal is under
 Pilot project on CO2 sequestration through microalgae at Hazira plant
 Algae have recently received a lot of attention as a new biomass source
 for the production of renewable energy.  Some of the main
 characteristics which set algae apart from other biomass sources are
 that algae have a high biomass yield per unit of light and area, can
 have a high oil or starch content, do not require agricultural land,
 fresh water is not essential and nutrients can be supplied by
 wastewater and CO2 by combustion gas.
 The pilot project was set up at Hazira plant with an aim to sequester
 CO2 from vent gas (released during sweeting process of sour gas) with
 the microalgae and convert into value added products. The results are
 encouraging which shows that 50% of the CO2 from the SRU vent could be
 absorbed by the absorption medium in the absorption column at a
 pressure of 0.5 Bar. The carbonated medium, when transferred to the
 raceway pond, inoculated with microalgal strain, showed appreciable
 algal growth (18 g/m2/day), which was harvested. The harvested biomass
 was tested at BITS Pilani, Goa Campus for the potential of bio-methane
 generation. It was found that the biomass have good potential of
 bio-methane generation.  (336 Litre/ when fed with 0.5 KgVS /m3/day).
 Waste to Fuel project (under Swach Bharat Abhiyan)
 MoP&NG has desired to take a project on waste to fuel at Puri, Odisha
 under Swachh Bharat Abhiyan (SBA) as a part of Corporate Social
 Responsibility. The project being of specialized nature and involving
 technical expertise is being steered by CM&SG. Following steps were
 * MDT has been formulated to take project forward
 * Meeting with Puri administration had been concluded.
 * Draft Eol has been put up for approval before floating for
 identifying technology and prospective bidders.
 Disclosing sustainability performance- Sustainability Reporting
 Sustainability reporting, the practice of measuring, disclosing, and
 being accountable to internal and external stakeholders for
 organizational performance towards the goal of sustainable development
 is being increasingly adopted by organizations. Sustainability
 Reporting is also believed to lead to improved sustainable development
 outcomes as it allows organizations to measure, track, and improve
 their performance on specific issues along the three bottom lines.
 Published third party assured A  sustainability report for ONGC group of
 companies including ONGC Videsh and MRPL (GRI-G3.0 complaint with Oil
 and gas sector supplement and BRR).
 Capacity building & knowledge Dissemination
 CM&SG has three tier knowledge dissemination approaches on carbon,
 water management and sustainable development.
 * Annual Training Program at ONGC Academy
 * Programs at Petrotech
 * Awareness programs at different work-centers
 Total seven awareness programs were conducted by CM&SG at CFB Silchar,
 RFB Jodhpur, Western Offshore Basin Mumbai, MBA Basin Kolkata, Cauvery
 Asset Karaikal, OB Vadodara and Cauvery & KG-PG Basin. Total 240
 executives participated in the program.
 A two day 3rd CM&SG meet was conducted at Goa in January, 2015 for an
 in depth interaction of CM&SG and SD officers from all ONGC work
 centers to strategize the pursuit of SD activities in ONGC.
 A two day seminar on Innovation for Sustainability Dividend was
 conducted by CM&SG in association with Petrotech Society at Delhi
 during November, 2014. The seminar was attended by representatives
 across Indian oil & gas industries, institutes working in the
 sustainability and representatives from ONGC.
 SD brochure was published during 3rd CM&SG meet. The brochure would be
 a communication tool to communicate ONGC''s triple bottom line
 performance (economic, social and environmental) and sustainability
 practices. This brochure highlights the considerable work done in the
 sustainability space, SD initiatives and performance.
 Film on Sustainability was unveiled during 3rd CM&SG meet by Governor
 of Goa in the presence of Director-I/c- CM&SG.This small film
 highlights the journey of ONGC in the pursuit of sustainable
 Stake holder engagement meet
 Two stakeholders engagement meets were organized to map and prioritise
 the key sustainability issues of ONGC.  The first meet was meant for
 internal stakeholders who had prioritized the set of issues which would
 impact the business sustainability of ONGC. The second meet was for the
 external stakeholders who had prioritized the issues whose impacts on
 ONGC would impact their business sustainability. The outcome of the two
 reports, upon juxtaposition, has generated the key materiality issues
 of ONGC to work upon. This is the first time such an exercise was
 Other Initatives:
 Corporate Waste Management Policy: Your company approved Corporate
 Waste Management Policy and the same will be reviewed after every three
 * Trading policy on monetizing of CER shas been approved and will be
 operational shortly.
 * Carbon Neutrality: ONGC has taken a conscious decision to reduce its
 carbon footprint as a part of its sustainable development programme. As
 a first step towards this mission, CM&SG has undertaken a maiden
 initiative to render the carbon footprints of three major areas
 neutralised for 2013-14. The areas are :
  * Air travel of all ONGC employees including to and fro local surface
    transportation to airport.
  * Consumption of electricity, paper, LPG and fuel for local
    transportation from IPE Campus, IDT, IEOT, IRS and IPSHEM
 * Flaring and electricity consumption of Uran Plant.  Carbon neutrality
 is essentially a concept of having a net zero GHG footprint of an
 activity. The entire process involved a detailed GHG accounting of the
 activity and offsetting the footprint. The total footprint of the
 activities is 1,37, 345 tons of CO2 equivalent and has been offset by
 retiring an equivalent quantity of carbon credits issued against the
 registered CDM projects of ONGC.
 13. Business Responsibility Report - 2014-15
 Securities & Exchange Board of India has introduced Clause 55 to the
 Listing Agreement with the Stock Exchanges, which states that Listed
 entities shall submit, as part of their Annual Report, Business
 Responsibility Report, describing the initiatives taken by them from an
 environmental, social and governance perspective. Accordingly, the
 third Business Responsibility Report - 2014-15 has been drawn up and
 forms part of the Annual Report for 2014-15.
 14. Internal Control System
 Your Company has a well-established and efficient internal control
 system and procedure. The Company has a well-defined delegation of
 financial powers to its various executives through the Book of
 Delegated Powers (BDP). The Integrated BDP is updated from time-
 to-time in line with the needs of the organisation as well as to bring
 further delegation. BDP has been revised during FY 14-15 and the same
 has been made effective from 01.01.2015. The Company has in-house
 Internal Audit Department commensurate with its size of operations.
 Audit observations are periodically reviewed by the Audit &Ethics
 Committee of the Board and necessary directions are issued whenever
 Your company has taken steps to evaluate various forms of energy to
 fulfil the country''s growing energy needs. Towards this end, your
 company has established an ONGC Energy Centre Trust (OECT), which is
 mandated to undertake or assist in programs / projects of fundamental
 and applied research for improving and developing commercially viable
 energy mediums and sources beyond hydrocarbons, especially in clean
 and/or renewable energy options. ONGC Energy Centre (OEC) has been
 set-up under the aegis of the OEC Trust to work on various clean energy
 Your company through ONGC Energy Centre has been implementing several
 Research Projects on new and alternative sources of energy. These
 Projects are in advanced stages of implementation, in collaboration
 with various national and international academic, research and
 industrial organizations. The projects where your company is currently
 engaged in are:
 a) Hydrogen Generation through Thermo-chemical Processes
 b) Exploration for Uranium
 c) Bioconversion of lignite to Methane
 d) Bioconversion of Oil to Methane
 e) Kinetic Hydro Power
 f) Geothermal Energy
 g) Solar Thermal Project
 These apart, during 2014-15, ONGC Energy Centrehas also evaluated many
 new options to expand the research and technology development
 activities and also to focus on optimum utilization of resources
 available with ONGC. These efforts have been described in detail in the
 Annexure Con Energy Conservation.
 Further, a Board Level Committee on Research & Development has been
 constituted. The first meeting of the Committee was held on 27.05.2015
 and the terms of reference of the Committee have been approved.
 16. Human Resources
 Your Company values its Human Resources the most.  To keep their morale
 high, your company extends several welfare benefits to the employees
 and their families by way of comprehensive medical care, education,
 housing and social security.
 17. Employee Welfare
 Your Company continues to extend welfare benefits to the employees and
 their dependants by way of comprehensive medical care, education,
 housing, and social security. Your Company continues to align company
 policies with changing economy and business environment.
 Employee Welfare Trusts -
 Your Company has established the following major Trusts for welfare of
 employees:- Employees Contributory Provident Fund(ECPF) Trust, manages
 Provident Fund accounts of employees of your Company.
 The Post Retirement Benefit Scheme (PRBS) Trust of your Company manages
 the pension fund of employees of your company which has been converted
 into a Defined Contribution Scheme as per DPE guidelines.In the
 converted Defined Contribution Scheme, the corpus in the individual
 employee account shall include employer/ employee contributions and
 interest thereon. The benefits under the Scheme are dependent on corpus
 in the individual employee account and accordingly, would be market
 determined which depends on interest rate, annuity price etc.
 The Composite Social Security Scheme(CSSS)
 formulated by your company provides an assured ex- gratia payment in
 the event of unfortunate death or permanent disability of an employee
 in service. In case of Separation other than Death/Permanent total
 disability, employees own contribution alongwith interest is refunded.
 Gratuity Fund Trust exists for payment of gratuity as per the
 provisions of the Gratuity Act.
 Your Company has a Sahayog Trust for its Sahayog Yojana to provide
 ex-gratia financial grant for sustenance, medical assistance,
 treatment, rehabilitation, education, marriage of female dependent and
 alleviation of any hardship or distress to secure the Welfare of the
 workforce and their kin, who do not have adequate means of support. The
 beneficiaries under this scheme includes casual, contingent, daily
 rated, part time, adhoc, contract appointees, tenure based employees,
 apprentices and trainees employed by your Company besides regular and
 past employees. Under the scheme an amount of Rs. 5770 million were
 disbursed by the Trust during the year.
 Extension of Benefits under the Asha Kiran Scheme to retired
 The Asha Kiran Scheme was introduced to meet the emergency needs of the
 ex-employees retired prior to 01.01.2007, who are passing through
 distressful situation. The scheme was launched as per DPE guidelines by
 creating a corpus of 1.5% of PBT. During the year, under this scheme
 financial assistance of Rs. 1780 million was provided to 14698
 Persons with Disabilities
 ONGC believes in affording equal opportunities to physically challenged
 people. As on 31.03.2015, there were 156 permanent employees with
 disabilities (0.5%) on the rolls of ONGC.
 Implementation of Govt. Directives for Priority Section
 Your Company complies with the Government directives for Priority
 Section of the society. The percentage of Scheduled Castes(SC) and
 Scheduled Tribes (ST) employees were 15 percent and 9 percent
 respectively as on 31st March, 2015.
 Your Company is fully committed for the welfare of SC and ST
 communities. The following welfare activities are carried out by your
 Company for their upliftment in and around its operational areas:-
 Annual Component Plan:
 Under Annual Component Plan for SC/ST, every year an allocation of Rs.
 200 million is made. Out of this, Rs. 60 million is distributed amongst
 all the Work centres of ONGC for taking up activities for welfare of
 SC/ST Communities in and around the areas of our operations. In
 addition, Rs. 140 million is managed centrally, and is earmarked for
 Special projects/ proposals/schemes for the welfare of areas/persons
 belonging to SC/ST communities. The amount under component plan is
 utilised for taking up various welfare measures for the welfare and
 upliftment of the needy people of SC/ST Communities. This fund is
 especially meant for providing help and support in Education and
 Training, Community Development and Medical and Health Care.
 Scholarship to SC/ST meritorious students
 Your Company provides scholarships for meritorious SC & ST students
 from 100 to 500 for pursuing higher professional courses at different
 Institutes and Universities across the country in Graduate Engineering,
 MBBS, PG courses of MBA and Geo- Sciences. The major feature of the
 scheme is that the scholarships have been equally divided for both Boys
 and Girl students and the amount of scholarship has been made out to
 Rs. 4,000/- per month per student subject to the conditions of the
 scheme. The annual budget for the scheme on its total implementation is
 Rs. 76 million per annum.
 18. Industrial Relations
 During the year your Company maintained harmonious Industrial Relations
 throughout the Corporation.  Mandays loss due to internal industrial
 action was reported as ''NIL'' for the year 2014-15.
 19. Grievance Management System (GMS) :
 Your Company provides an easily accessible machinery to the employees
 for redressal of their grievances, either through informal channel (open
 hearing day) or through formal channel. On 26th January, 2015 a
 web-portal, Public Grievance Portal, was launched, which will provide
 redressal of grievances of all stakeholders. This portal is a step
 further to empower each stakeholder viz.
 citizen/vendor/employee/former-employee to register their grievances
 related to any operational wing of ONGC, through a single window on
 corporate web portal. A structured apparatus has been operationalized to
 process the grievances within a limited time frame Public Grievance
 Management System
 All Key Executives of your company have designated a publicized time
 slot thrice in a week to meet Public Representatives in order to
 speedily redress their grievances.
 20. Implementation under the Right to Information Act
 An elaborate mechanism has been set up throughout the organization to
 deal with requests received under RTI Act, 2005.There are two Central
 Public Information officers (CPIOs) based at the Registered Office at
 Delhi and 22 Central Assistant Public Information officers (CAPIOs)
 have been designated at different work centers across the country to
 redress the issues under RTI Act 2005.
 69 applications were carried forward from the year 2013-14 to 2014-15.
 1790 applications were received during the year 2014-15; making a total
 of 1859. In addition, 66 First appeals were carried forward from the
 previous year to financial year 2014-15 and 261 were received during
 the period. All the aforesaid 327 first appeals were disposed off by
 the appellate authority of ONGC and orders passed by the authority were
 complied with in stipulated time frame.
 21. Implementation of Official Language Policy
 Your Company makes concerted effort to spread and promote Official
 Language. In this effort some of the steps taken during the year were:-
 (i) Company has introduced Unicode Hindi software in all our offices.
 (ii) Hindi workshops are conducted at regular intervals(iii) Hindi
 seminars and ''Kavi Gosthies'' organized in Dehradun and Delhi. (iv) ONGC
 actively contributed in publishing bilingual Petroleum Terminology,
 initiated by MoP&NG. (v) Hindi Teaching Scheme of Govt. of India is
 effectively implemented at all regional work centres.
 22. Human Resource Development
 33,185 ONGCians (as on 31st March, 2015), which includes 26,656
 executives and 9,529 non-executives, dedicated themselves for the
 excellent performance of your company during the year. The workforce
 intake strategy pursued by your Company caters to meeting the demands
 of maintaining a steady flow of talent, in a business which is
 characterized by high risks and uncertainties, enormous costs, fast
 changing level of technology, physically challenging work environment,
 fluctuating product prices and growing competition.  Your Company has
 drawn up a scientific manpower induction plan aligned to the business
 plans as well factoring the manpower profile of the Company.
 Your company believes that continuous development of its human resources
 fosters engagement and drives competitive advantage. Towards that end,
 during the year, your Company conducted Business Games to hone the
 business acumen of its executives. Business Game has proved to be very
 popular initiative and tests the ability of the executives through
 business quizzes, business simulations and case-study presentations.
 During the year 2014-15, a total of 144 teams and 576 executives
 participated in the event. Fun Team Games (FTG) were organized for E0
 and staff level employees to inculcate MDT(Multi-disciplinary Team)
 concept and spirit of camaraderie and belongingness to the organization,
 which was very well received by the participants. A total of 75 Teams
 and 300 employees participated in FTG during the year 2014-15. The
 winners of Business Games and Fun Team Games were felicitated by the CMD
 on Republic Day Celebrations. Your Company also conducted the Assessment
 Development Centre (ADC) for 192 DGM level executives (0.81% of
 executives) and provided them developmental inputs. Your Company has
 partnered with global HR consulting firms to create a pool of accredited
 mentors in the organization. These mentors will support organization''s
 effort to hone young minds to successfully respond to the emerging
 business needs of your Company. As part of this Initiative, in the year
 2014-15, 36 mentorship workshops were conducted. Also, 123 mentors have
 been awarded Basic and Advanced level Accreditations for mentoring.
 Your Company attaches utmost importance to the development of its human
 resource.Your Company has branded the spectrum of its training
 activities as ''EXPONENT - a comprehensive Programme, which is nurturing
 the energy leaders of tomorrow. The growth of an ONGCian to an Exponent
 of energy business is facilitated by ONGC Academy, Regional Training
 Institutes and other specialised in-house training Institutes and world
 class training providers in India and abroad.
 During the year , a total of 20084 Executives and 4729 non-executives
 were imparted appropriate training, spanning 176644 executive mandays
 (Number of executive mandays per executive per year: 7.49) and 16119
 non-executive mandays (Number of non- executive mandays per executive
 per year: 1.69) during 2014-15 at all Work centres.
 In order to absorb new and emerging technological advancements
 pertaining to oil and gas exploration and production, 85 programmes,
 including 26 foreign faculty programmes pertaining to functional
 disciplines, were organized with the best of faculties from India and
 abroad during the year.
 To nurture the talent with the objectives to prepare future leaders of
 the organisation for taking up higher roles and address key
 organisational challenges, 338 executives of E7, E6 and E5 level were
 exposed to Leadership Development Program (LDP), Advanced Management
 Program (AMP) and Senior Management Program (SMP) respectively, the
 tailor made Management Programmes with overseas learning component
 through tie-ups with leading B- schools of the country.
 23. Women Empowerment
 Women employees constituted over 6 percent of your Company''s workforce.
 During the year, programmes on women empowerment and development,
 including programmes on gender sensitization were organized.  Your
 Company actively supported and nominated its lady employees for
 programmes organized by reputed agencies.
 Your company scrupulously complies with The Sexual Harassment of Women
 at Workplace (Prevention, Prohibition and Redressal) Act 2013. Reported
 cases of Sexual harassment are inquired into by Complaint Committee
 constituted separately for all the work- centres, for taking
 disciplinary action against the delinquent employees.
 24. Work-Life Balance:-
 Your Company continued in its endeavors to ensure work-life balance of
 its employees. The townships at many work-centers were provided
 facilities like gymnasiums, music rooms, etc. Outbound programmes with
 families were also organized at various work-centers. Plays on the
 importance of Work-Life Balance'' were staged to create awareness
 amongst the employees. In addition, cultural programmes involving
 employees and their families were also conducted. MahilaSamitis and
 Resident Welfare Associations (RWAs) were involved in the organization
 of these cultural programs. Your Company has a adventure wing named
 ONGC Himalayan Association which organizes adventure programmes like
 mountaineering, trekking, white water rafting, snow skiing, desert
 Safari, Aero sports etc. which adds towards morale, engagement, team
 spirit, camaraderie, stress management and spirit to explore unknown
 among the employees.
 25. Sports
 Your Company continued its large scale support for development of sports
 in the country in the form of job offers & scholarships to deserving
 sportspersons. Sponsorships to various sports associations / federations
 / sports bodies to organise sports events as well as develop
 infra-structure were also extended. Your Company extended support in 23
 game disciplines to 170 players on regular rolls and 167 players on
 scholarship. The support has enabled many sportspersons to bring home
 laurels for the nation and the organisation. Some of the key
 achievements during the year are given below:
 Your Company was conferred the prestigious Rashtriya Khel Protsahan
 Puruskar by Hon''ble President of India Mr. Pranab Mukherjee at a
 glittering ceremony in Rashtrapati Bhavan on the occasion of National
 Sports Day on Friday 29th August , 2014. CMD Mr. D.K.Sarraf received
 the honour from the President.
 Two ONGCians were conferred with the prestigious Arjuna Award for the
 year 2014; Ms. Heena Sidhu in Shooting and Mr. V Diju in Badminton. The
 total number of National Awardees in the organization stands at 24
 (KhelRatna - 1, Padma Shri - 2 & Arjuna - 21)
 In Commonwealth Games 2014 held at Glasgow (UK) a total of 20 ONGC
 athletes had participated in this 12 day long mega event and bagged 6
 medals (1 Gold, 3 Silver & 2 Bronze) which is a pretty healthy success
 rate In Asian Games 2014 held at Incheon (Korea) a total of 40 ONGC
 athletes had participated and bagged 13 medals (4 Gold, 1 Silver & 8
 Mr.Sourav Kothari won the Gold Medal at the Asian Billiards
 Your Company was awarded the prestigious FICCI Certificate of
 Excellence for the Award for long time contribution to Indian
 Football for the year 2014 [this is the first time in the history that
 an organisation has been awarded successive FICCI Awards].
 Mr. Pankaj Advani of ONGCwon 12th world title in cue sports. In the
 year 2014-15 he won World Billiards title in time & point format, 6 red
 world snooker championship and World team Billiards Championship.
 Ms. Rashmi Kumari of ONGC won the singles title of world Cup (women) in
 Your company is fully engaged in ensuring equitable and sustainable
 growth of society in and around the area of its operations besides
 complying with government directives to discharge its social
 responsibility as a leading Indian corporate. CSR activities are
 essentially guided by project based approach in line with the
 provisions of Companies Act, 2013 promulgated by Ministry of Corporate
 Affairs and Companies (CSR Policy) Rules and the guidelines on CSR&
 Sustainability issued by Department of Public Enterprise, Government of
 India. Seeking to herald an inclusive business paradigm, ONGC has CSR
 interventions that are based on social, environmental, and economic
 considerations and are well-integrated into the decision-making
 structures and processes of the organization.
 Pursuant to enactment of Companies Act 2013 and Companies (CSR Policy)
 Rules 2014 by Ministry of Corporate Affairs and Guidelines on CSR and
 Sustainability by Department of Public Enterprise, the CSR Policy has
 been approved by the Board of Directors. The same is uploaded on the
 Company''s website.
 Further, in line with the approval of the Board, ONGC has set up and
 registered ONGC Foundation under the Societies Registration Act, for
 carrying out CSR activities. Necessary steps are on hand to recruit
 manpower for making ONGC Foundation an effective tool for
 implementation of CSR policy of ONGC.  Pursuant to Rule 9 of Companies
 (Corporate Social Responsibility Policy) Rules, 2014 the Annual Report
 on CSR activities is annexed herewith as Annexure ''C''.  CSR ACTIVITIES
 * Eradicating hunger, poverty and malnutrition, promoting preventive
 health care and sanitation and including contribution to Swachch Bharat
 Kosh set up by Central Government for promotion of sanitation, making
 available safe drinking water:
 * Promoting education, including special education and employment
 enhancing vocation skills. Especially among children, women, elderly,
 and the differently abled and livelihood enhancement projects.
 * Promoting gender equality, empowering women, setting up homes and
 hostels for women and orphans; setting up old age homes, day care
 centres and such other facilities for senior citizens and measures for
 reducing inequalities faced by socially and economically backward
 * Ensuring environmental sustainability, ecological balance, protection
 of flora and fauna, animal welfare, agro forestry, conservation of
 natural resources and maintaining quality of soil, air and water
 including contribution to clean Ganga fund set up by the central
 government for rejuvenation of river Ganges.
 * Protection of national heritage, alt and culture including restoration
 of buildings and sites of historical importance and works of art;
 setting up public libraries; promotion and development of traditional
 and handicrafts
 * Measures for the benefit of armed forces veterans, war widows and
 their dependents.
 * Training to promote rural sports, nationally recognised sports,
 Paralympics sports and Olympic sports.
 * Contribution to the Prime Minister''s National Relief Fund or any other
 fund set up by the Central Government for socio-economic development
 and relief and welfare of the Scheduled Caste& the Scheduled Tribes,
 other backward classes, minorities and women.
 * Contributions or funds provided to technology incubators located
 within academic institutions which are approved by the Central
 * Rural development projects.
 * Slum area development.
 In the last 7 years, your company has contributed Rs. 18,807 Million
 towards its well-structured and well- focussedCSR activities.
 Out of the CSR Budget of Rs. 6,606.12 million, ONGC spent an amount of
 Rs. 4,952.29 million in FY 2014-15.  This translates to overall
 utilization of 74.97% of the CSR Budget.
 Reason for non-utilization of full CSR budget:
 * Major Initiatives undertaken were mostly in transition phase so the
 allocated earmarked budget could not be spent.
 * Some of the flagship projects undertaken were of long gestation
 period with budget spread over 3-5 years thus resulting in lesser
 utilisation of earmarked budget for the financial year 2014-15.
 Some of the landmark CSR initiatives under implementation during the
 year 2014-15 by your Company include:
 (a) Healthcare:
 (i) Varisthajana Swasthya Sewa Abhiyan: ONGC and Help-Age India
 To provide basic medical facilities to elderly in terms of medical
 consultancy, medicine distribution, basic diagnostic test, special
 health camp and palliative care at their doorstep. A total of 20 Mobile
 Medicare Units (MMUs) are engaged for taking basic healthcare to the
 doorsteps of the elderly in nine states, 17 Districts, 35 blocks and
 131 Gram Panchayat and 240 villages of India. A total of 11,86,020
 beneficiaries were treated for chronic illness such as Hypertension,
 Diabetes, Osteoarthritis, Dyspepsia& Skin problems etc.
 (ii) Community Hospital in Lakhimpur- Kheri, Uttar Pradesh:
 The project is unique in terms of using the PPP model in CSR with full
 Capex of Rs. 45 million contribution by ONGC and Opex borne by the
 Operating Partner. This 26 bedded Community Hospital would cater to
 Primary and Secondary Health Service Requirements from BPL,
 Economically Backward Class families.  Healthcare services are being
 provided at 50% less cost than the existing CGHS rates.
 (iii) Aids and Appliances to person with disability:
 This is a Pan India CSR project undertaken in association with
 Artificial Limbs Manufacturing Corporation of India (ALIMCO) and Bhagwan
 Mahaveer Viklang Sahayata Samiti (BMVSS), Jaipur commonly known as
 Jaipur Foot benefitting 45,495 Person with Disabilities. Beneficiaries
 were provided Orthopedic, Hearing and Visually Aids and Appliances. The
 total financial implication of the project was ''262 million covering 39
 ONGC operational areas and 61 Backward Districts in Phase-I of the
 project which concluded in the financial year 2014-15.
 (iv) Government General Hospital (GGH), Kakinada:
 ONGC has given financial assistance of Rs. 19 million to construct a
 separate building for blood bank and to equip the hospital with
 additional equipment for blood bank, general surgery and general
 medicine departments. This will immensely benefit people of East
 Godavari District where ONGC has a substantial operational presence
 (v) ONGC Mission Ujala:
 The project envisages eye screening of 50,000 children in Government
 Schools in NCR under National Blindness Control Programme of Govt. of
 India in collaboration with reputed NGO PRAANI.  Spectacles to 3,000
 children detected with refractive errors along with medicines were
 provided under this project.
 (b) Education & Vocational courses:
 i.  ONGC-GICEIT Computer Education Program:
 Through this project, employment- related free computer education is
 being imparted to economically underprivileged Youth. The project is
 implemented in association with Bhartiya Vidhya Bhawan''s Gandhi
 Institute of Computer Education and Information Technology, (GICEIT) at
 five work centres of ONGC located at Mehsana, Dehradun, Nazira,
 Karaikal and Rajahmundry. More than 8295 students have received
 computer training through these centers in the financial year 2014-15.
 ii.  ONGC-The Akshaya Patra Foundation:
 A centralized fully automated mechanized kitchen is being set up to
 provide mid-day meals to school going children (enrolled in Govt.
 schools) in the District of Surat. This kitchen was inaugurated by the
 Hon''ble Chief Minister of Gujarat Smt Anandiben Patel on 15th Feburary,
 2015. This kitchen has capacity to feed 2,00,000 children per day. The
 enrolment as on 31st March, 2015 is 1,90,840.
 iii. Community School at Sitapur, Uttar Pradesh:
 The project is unique in terms of using the PPP model in CSR with full
 Capex of Rs. 27 million contribution by ONGC and Opex borne by the
 Operating Partner- Shanti Devi Memorial Charitable Trust.
 iv.  ONGC Super 30
 ONGC Super 30 is a residential Coaching Programme for IIT aspirants
 based at Sivasagar Assam. The total cost of the project is Rs. 6.70
 million. The initiative was conceived to cater to underprivileged and
 below poverty line students who are unable to get proper coaching to
 qualify engineering exams due to lack of resources and funds.
 (c) Projects for Physically and Mentally challenged
 i.  ONGC Centre for vocational rehabilitation for the differently abled:
 A financial support of Rs. 13 million has been provided to Tamana
 School of Hope, Vasant Vihar, New Delhi for setting up of Autism Centre
 and provide vocational training for the mentally challenged young
 adults and children working for their economic rehabilitation by
 teaching relevant vocational skills to them.
 ii. ONGC -Cheshire Home Project for Physically and Mentally Challenged:
 A project on health rehabilitation and allied services for economically
 disadvantage children with disabilities living in slums area of Mumbai
 undertaken with Cheshire Homes (India) Mumbai with financial assistance
 from ONGC. Children with Disabilities were identified from areas of
 Hanuman Nagar, Damu Nagar and Shivaji Nagar covering 3 slum communities
 and provided with rehabilitation treatment and aids with an objective
 to help them lead a normal life.
 (d) Environment Sustainability:
 i.  Eastern Swamp Deer Conservation Project (Phase II) :
 The phase II of the project includes capture of Eastern Swamp Deer from
 the source i.e Kaziranga National Park and translocate them to Manas
 National park.  This is a research based project to conserve and
 increase the viable population of Eastern Swamp Deer in their natural
 habitat at Manas National Park. The total cost of the project is Rs.
 8.9 million.
 ii. Harit Moksha: Green Cremation System
 This is a unique CSR initiative of ONGC undertaken with
 MokshdaParyavaranEvam Van SurakshaSamiti (MPEVSS) to reduce wood
 consumption during traditional cremations through Mokshda Green
 Cremation Systems (MGCS). The project includes installing 30 units of
 green cremation system in 8 cities of 7 different states with a budget
 of Rs. 92 million . The project helped in saving approximately 13,700
 tonnes of wood & reduced 26,500 tonnes of GHG emissions till date.
 (e) Development of Backward Districts:
 The sustainable development project is being implemented in Jaisalmer,
 a backward district in Rajasthan. Project involves setting up of 49
 Wind Turbine Generators (WTG) each of capacity of 2.1 MW with total
 capacity of 102.9 MW in association with M/S Suzlon Energy Ltd. ONGC
 contribution towards the project is Rs. 5620 million. 22 nos. of WTG
 have been installed.
 (f) Women Empowerment:
 ONGC as a leading organization and among the founder member of Women in
 Public Sector (IPS) established way back in 1990 under the aegis of
 SCOPE has always spearheaded women empowerment Initiatives. Women
 Development Forum (WDF) an internal wing of ONGC women Employees was
 also formed in line with WIPS to encourage women employee to explore
 their potential to the fullest.
 The basic aims and objectives of WIPS are:
 * To promote the growth and development of Women in Public Sector.
 * To assist the Public Undertakings in optimising the full potential in
 omen employees.
 * To play a catalytic role in improving the status of Women in and
 around PSEs
 Women in Public Sector (WIPS) presented ONGC with the Best Enterprise
 Award for Women Empowerment consecutively for 3 years till 2014. In the
 year 2015 ONGC was awarded the second prize for the same category.
 (g) Other CSR Initiatives:
 i) Hortoki Water Supply Scheme: The project aims to create a
 sustainable source of safe drinking water to the people of Hortoki
 Village, Kolasib District, Mizoram. A massive 1.7 Lakhs litre water
 tank was constructed as part of the project to supply more than 40 lpcd
 of water till 2043. ONGC has extended support of Rs. 9 million for the
 project. More than 450 households of Hartoki village are benefited
 through this project
 ii) Rajeev Gandhi International Sports Complex, Dehradun: ONGC in
 association with Govt. of Uttarakhand is working towards building a
 Cricket stadium-cum-sports complex with a capacity of 30,000 people
 extendable to additional seats in future, car parking, a sports
 academy, a club house or Gymnasium, restaurant and other auxiliary
 facilities.  ONGC has extended financial support of Rs. 500 million
 towards the project. The project is expected to be completed in two
 iii) Dashrath Stadium at Agartala: The project aims to create an Indoor
 sports complex in association with DDO Directorate of Youth Affairs.
 ONGC has extended support of Rs. 243 million for the project.
 iv) IIIT, Agartala: ONGC has extended support of Rs. 30 million for
 setting up a new IIIT Campus in Agartala.
 In addition to above major CSR initiatives undertaken in 2014-15, ONGC
 has partnered with many NGO and other non- profit organization in
 implementing several other CSR initiative across our country. All work
 centres of ONGC have designated CSR office to take care of the local
 As a testimony to our CSR efforts, your company has won many laurels
 such as:
 1.  Golden Peacock Award 2014 for CSR during 9th International
 Conference on Corporate Social Responsibility-2014
 2.  ABP News Global CSR Excellence & Leadership Award for Best Overall
 CSR practices
 3.  4th Annual Greentech CSR Platinum Award 2014 in petroleum
 exploration sector
 4.  Madan Mohan Malviya Golden Award for outstanding contribution in
 the field of Education
 5.  P L Roy CSR Award on ''International Day of Olde Persons'' for
 support to the elderly through its CSR initiative ''Varishthajana
 Swasthya Sewa Abhiyan''
 Consistent with the trend in preceding years, your Company, its various
 operating units and its senior management have been recipients of
 various awards and recognitions. Details of such accolades are placed
 at Annexure - ''D''.
 Pursuant to the requirement under Section 134(3)(c) of the Companies
 Act, 2013, with respect to Directors'' Responsibility Statement, it is
 hereby confirmed that:
 (i) In the preparation of the annual accounts, the applicable
 accounting standards have been followed and there are no material
 departures from the same;
 (ii) The Directors have selected such accounting policies and applied
 them consistently and made judgements and estimates that are reasonable
 and prudent, so as to give a true and fair view of the state of affairs
 of the Company as at 31st March, 2015 and of the profit of the Company
 for the year ended on that date;
 (iii) The Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 2013, for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 (iv) The Directors have prepared the annual accounts of the Company on
 a ''going concern'' basis;
 (v) The Directors have laid down internal financial controls which are
 being followed by the company and that such internal financial controls
 are adequate and are operating effectively; and
 (vi) The Directors have devised proper systems to ensure compliance
 with the provisions of all applicable laws and that such systems are
 adequate and operating.
 Your Company has taken structured initiatives towards Corporate
 Governance and its practices are valued by various stakeholders. The
 practices emanate from the need to position multi-layered checks and
 balances at various levels to ensure transparency of its operations in
 the decision making process.
 In terms of Clause 49 of the Listing Agreement, a report on Corporate
 Governance for the year ended March 31st March, 2015, supported by a
 certificate from the Company''s Statutory Auditors confirming compliance
 of conditions, forms part of this Report.
 ONGC has implemented the mandatory Guidelines of Department of Public
 Enterprises (DPE), Government of India, on Corporate Governance to the
 maximum extent possible.
 In terms of section 204(1) of the Companies Act, 2013, the Company has
 engaged M/s P P Agrawal & Co., Company Secretaries in whole-time
 practice as Secretarial Auditors for conducting Secretarial Compliance
 Audit for the financial year ended 31st March, 2015. Their report forms
 part of this Annual Report.
 With regard to the observations of Secretarial Auditors as contained in
 their report, it is submitted that ONGC being a Government company, all
 directors on the Board of the company are appointed by Government of
 India. The matter relating to appointment of requisite numbers of
 Independent Directors has already been taken up with the Government.
 The Company has formulated and uploaded the following policies/codes on
 its website in line with the Companies Act, 2013 and Listing Agreement:
 (a) Code of Conduct for Board Members and Senior Management Personnel
 (b) Related Party Transactions Policy & Procedures, 2014
 (c) Material Subsidiary Policy
 (d) The Code of Internal Procedures and Conduct for prohibition of
 insider trading in dealing with the securities of ONGC
 In line with global practices, your Company has made available all
 information, required by investors, on the Company''s corporate website Apart from the mandatory measures required to be
 implemented as a part of Corporate Governance, ONGC has gone the extra
 mile in this regard for the benefit of its stakeholders:
 i.  Whistle Blower Policy / Vigil Mechanism: A total of 35 Protected
 Disclosures till 31.03.2015 have been processed through the histle
 Blower mechanism of ONGC which was implemented from December 01, 2009.
 The policy ensures that a genuine Whistle Blower is granted due
 protection from any victimization. The Policy is applicable to all
 employees of the Company and has been uploaded on the intranet of the
 In addition, the Company has a full-fledged Vigilance Department, which
 is headed by Chief Vigilance Officer who holds the rank of a Functional
 Director of the Company. With a view to maintain his independence, the
 CVO reports to the Chief Vigilance Commissioner of the Government of
 ii.  Enterprise-wide Risk Management (ERM) framework: In line with the
 requirements of Clause 49 VI of the Listing Agreement, your Company has
 developed and rolled out a comprehensive Enterprise-wide Risk
 Management (ERM) Policy throughout the organization. The Audit & Ethics
 Committee periodically reviews the risk assessment and minimization
 process in ONGC.
 The Risk Management policy of your Company is as follows:
 ONGC shall identify the possible risks associated with its business
 and commits itself to put in place a Risk Management Framework to
 address the risk involved on an ongoing basis to ensure achievement of
 the business objective without any interruptions.
 ONGC shall optimize the risks involved by managing their exposure and
 bringing them in line with the acceptable risk appetite of the Company
 The Board of Directors have constituted a Board Level Risk Management
 Committee in terms of Clause 49 of the Listing Agreement. The first
 meeting of the Committee was held on 19.03.2015 wherein the risk
 appetite and present risk profile, development of risk register to
 comply with clause 49 of the listing agreement and Companies Act, 2013,
 Risk Management Policy in ONGC, Risk Reporting structure, Risk
 Management / mitigation process, Governance Risk Management &
 Compliance (GRC) module roll-out through SAP, Review of risk register
 and identification of new & emerging risks, categorization and
 quantification of risks and role of internal audit in ERM etc were
 iii. Meeting of Independent Directors: No Meeting of Independent
 Directors was held during 2014-15.
 iv.  Certificate of Independence by Independent Directors: The
 Independent Directors have submitted declaration that they meet the
 criteria of Independence as per section 149(6) of the Companies Act,
 Your Directors have made necessary disclosures, as required under
 various provisions of the Act and Clause 49 of the Listing Agreement.
 Extract of Annual Return
 As per requirement of section 92(3) of the Companies Act, 2013, the
 extract of the annual return in form MGT- 9 is placed at Annexure-E.
 Particulars of Employees
 ONGC being a Government Company, the provisions of section 197(12) of
 the Companies Act, 2013 and relevant Rules shall not apply in view of
 the Gazette notification dated 05.06.15 issued by Government of India,
 Ministry of Corporate Affairs.
 The terms and conditions of the appointment of Functional Directors is
 decided by the Government of India. The salary and terms and conditions
 of the appointment of Chief Financial Officer (CFO) and Company
 Secretary, KMPs of ONGC, is in line with the parameters prescribed by
 the Government of India.  Performance Related Pay of Functional
 Directors and other employees including CFO & Company Secretary (KMPs)
 is in line with the guidelines of Department of Public Enterprises,
 Government of India.
 The information required under Section 134(m)of the Companies Act,
 2013, read with the Companies (Disclosure of Particulars in the Report
 of Board of Directors) Rules, 1988, is annexed as Annexure - ''F''.
 In compliance with section 177(8) of the Companies Act, 2013, the
 details regarding Audit & Ethics Committee is provided under Corporate
 Governance report which forms part of this Annual Report. There has
 been no instance where the recommendations of the Audit & Ethics
 Committee have not been accepted by the Board of Directors.
 The Statutory Auditors of your Company are appointed by the Comptroller
 & Auditor General of India (C&AG).  M/s Mehra Goel & Co, New Delhi, M/s
 G D Apte & Co, Mumbai, M/s Lodha and Co, Kolkata, M/s Varma & Varma,
 Chennai and M/s Khandelwal Jain and Co, Mumbai Chartered Accountants
 were appointed as joint Statutory Auditors for the financial year
 2014-15. The Statutory Auditors have been paid a remuneration of Rs.
 25.01 million (previous year Rs. 22.92 million) towards audit fee and
 certification of Corporate Governance Report.The above fees are
 exclusive of applicable service tax and reimbursement of reasonable
 travelling and out of pocket expenses actually incurred.
 34. Auditors'' Report on the Accounts
 The Comments of Comptroller & Auditor General of India (C&AG) form part
 of this Report and are attached as per Annexure-''G''. There is no
 qualification in the Auditors Report and there are no supplementary
 comments by C&AG under section 143(6)(b) of the Companies Act, 2013 on
 the Financial Statements of the Company. Notes to the Accounts referred
 to in the Auditors Report are self-explanatory and therefore do not
 call for any further comments. You would be pleased to know that your
 Company has received Nil comments from C&AG and Statutory Auditors for
 the year 2014-15. This is the ninth year in a row that the organization
 has received Nil comments.
 Six firms of Cost Accountants were appointed as Cost Auditors for
 auditing the cost accounts of your Company for the year ended 31st
 March, 2015 by the Board of Directors. The Cost Audit Report for the
 year 2013-2014 has been filed under XBRL mode on 25.09.2014 which was
 well within the due date of filing (i.e.30.09.2014).
 ONGC being a Government Company, the provisions of section 134(3)(e) of
 the Companies Act, 2013 shall not apply in view of the Gazette
 notification dated 05.06.15 issued by Government of India, Ministry of
 Corporate Affairs.
 PERFORMANCE EVALUATION ONGC being a Government Company, the provisions
 of section 134(3)(p) of the Companies Act, 2013 shall not apply in view
 of the Gazette notification dated 05.06.15 issued by Government of
 India, Ministry of Corporate Affairs.
 Since the 21st Annual General Meeting held on
 19.09.2014, Shri P Uma Shankar, Shri S. Ravi and Shri R.K. Singh
 (Independent Directors) vacated their office on 19.09.2014 (FN) in
 terms of Section 161 of the Companies Act, 2013. The tenure of Prof.
 Samir Kumar Barua and Shri Om Prakash Bhatt (Independent Directors)
 concluded on 13.12.2014.
 On being appointed as Managing Director of ONGC Videsh Ltd, Shri N K
 Verma relinquished the charge of Director (Exploration), ONGC on
 27.08.2014. Shri U.P Singh, Additional Secretary (Exploration),
 Ministry of Petroleum & Natural Gas, joined the Board as Government
 nominee Director on 16.10.2014 in place of Shri Aramane Giridhar. Shri
 A.K. Diwivedi took over as Director (Exploration) on 16.03.2015.Shri A.
 K. Banerjee, relinquished the charge of the post of Director (Finance)
 on attaining the age of retirement on 30.04.2015.  Ms. Atreyee Das was
 appointed as Government Nominee Director on 14.05.2015.
 On being appointed as Secretary, Department of School Education and
 Literacy, Dr. S.C. Khuntia, Special Secratary, MoP&NG and Government
 nominee resigned from the Directorship of ONGC on
 26.06.2015. Shri Ashok Varma, Director (Onshore) relinquished the
 charge of Director (Onshore) on 31.07.2015 on attaining the age of
 superannuation and Shri V P Mahawar, who has been appointed as Director
 (Onshore) by Ministry of Petroleum & Natural Gas, Government of India,
 took over charge on 01.08.2015.  The Board places on record its deep
 appreciation for the excellent contributions made by Shri P. Uma
 Shankar, Shri S. Ravi, Shri R.K. Singh, Prof. Samir Kumar Barua, Shri
 Om Prakash Bhatt, Shri N. K. Verma, Shri Aramane Giridhar, Shri A. K.
 Banerjee, Dr. S.C. Khuntia and Shri Ashok Varma during their tenure.
 The strength of the Board of Directors of ONGC as on 1st August, 2015
 is 9, comprising 6 Executive Directors (Functional Directors including
 CMD) and 3 Non- Executive Directors i.e. two Government nominees and
 one Independent Director. Ministry of Petroleum & Natural Gas has been
 requested to appoint requisite number of independent Directors to
 comply with the provisions of Companies Act, 2013 and Listing
 Agreement. A total of 13 meetings of the Board of Directors of ONGC
 were held during the financial year 2014-15.
 Details of other Key Managerial Personnel as per Rule 8 (5) (iii) of
 The Companies (Accounts) Rules, 2014:-
 Shri A. K. Srinivasan was appointed as Chief Financial Officer
 w.e.f.06.05.2015 and as Key Managerial Personnel w.e.f. 28.05.2015.
 Shri N. K. Sinha, Company Secretary superannuated on 30.06.2015 on
 attaining the age of retirement. Shri V. N. Murthy took over as Company
 Secretary on 01.07.2015.
 37. Acknowledgement
 Your Directors are highly grateful for all the help, guidance and
 support received from the Ministry of Petroleum and Natural Gas,
 Ministry of Finance, DPE, MCA, MEA, and other agencies in Central and
 State Governments. Your Directors acknowledge the constructive
 suggestions received from Statutory Auditors and Comptroller & Auditor
 General of India and are grateful for their continued support and
 Your Directors thank all share-owners, business partners and members of
 the ONGC Family for their faith, trust and confidence reposed in ONGC.
 Your Directors wish to place on record their sincere appreciation for
 the unstinting efforts and dedicated contributions put in by the
 ONGCians at all levels, to ensure that the Company continues to grow
 and excel.
                                                For and on behalf of the
                                                Board of Directors
 Place : New Delhi                              (Dinesh Kumar Sarraf)
 Date : 1st August, 2015                    Chairman & Managing Director
Source : Dion Global Solutions Limited
Quick Links for oilnaturalgascorporation
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of is prohibited.