CHAPTER 1

COMPANY PROFILE

History of the organization

The company : corporate grievance

Employee strength

Divisions at IOCL

The organisation : spread

The organisation : business

Objectives of Organization

Structure of organization

SWOT analysis of the organization

ORGANISATION HISTORY

HISTORY:

Incorporated as Indian Oil Company Ltd. on 30th June 1959, it was renamed as Indian Oil Corporation Ltd. on 1st September 1964 following the merger of Indian Refineries Ltd. (established 1958) with it. Indian Oil and its subsidiaries account for approximately 48% petroleum products market share, 34% national refining capacity and 71% downstream sector pipelines capacity in India.

Indian Oil Corporation Ltd. (Indian Oil) was formed in 1964 through the merger of Indian Oil Company Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958). It is currently India’s largest company by sales with a turnover of Rs.1, 83,204 crore (US $ 41 billion) and profits of Rs. 4,915 crore (US $ 1.10 billion) for fiscal 2005. Indian Oil is also the highest ranked Indian company in the prestigious Fortune ‘Global 500’ listing, having moved up 17 places to the153rd position this year based on fiscal 2005 performance. It is also the 21st largest petroleum company in the world and the # 1 petroleum trading companies among the National Oil Companies in the Asia-Pacific region.

Indian Oil and its subsidiaries account for 47% petroleum products market share among public sector oil companies, 43.5% national refining capacity and 74% petroleum products pipeline capacity.

Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 271,074 crore and profit of Rs. 10,221 crore for the year 2009-10. Consistently improving its position in the Fortune 'Global 500' listings, it moved up 11 places, and was ranked 105th in 2009, making it the highest ranked Indian company in the list. It is also the 18th largest petroleum company in the world. Indian Oil's vision is driven by a group of dynamic leaders who have made it a name to reckon with.

In this section, read about Indian Oil’s business and its spread across the country & abroad. You can also know about Indian Oil's current financial performance, special initiatives and recognitions & awards that have come its way. The Indian Oil Group of companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Ltd.

The Corporation's cross-country network of crude oil and product pipelines, spanning over 10,550 km and the largest in the country, meets the vital energy needs of the consumers in an efficient, economical and environmental-friendly manner.

Indian Oil is currently investing Rs. 47000 crore in augmentation of refining and pipeline capacities, expansion of marketing infrastructure and product quality up gradation.

THE COMPANY: CORPORATE GOVERNANCE

IndianOil strongly believes that good Corporate Governance practices ensure efficient conduct of the affairs of the Company and help maximize stakeholder value. The Company endeavors to uphold the highest principles

and practices of Corporate Governance to ensure transparency, integrity and accountability in its functioning, which are vital for achieving the Corporate Vision of becoming a major, diversified, transnational, integrated energy company. Corporate Governance in the Company has been further strengthened through the adoption of the following:

Code of conduct for Directors and senior management personnel,

Code of conduct for prevention of insider trading,

Policy on risk assessment and minimizing procedures.

Employee Profile:

IndianOil’s Employee strength (as on 31st March, 2009) is 34158, out of which 13,802 are in the officer cadre. Grade-wise number of officers and workmen are given below:

Manpower as on 31st March 2009

Grade Total

Workmen

VIII 6058

VII 1549

VI 3707

V 3872

IV 3882

III 900

II 152

I 236

Total 20356

Officers I 55

H 118

G 371

F 961

E 1302

D 1550

C 2756

B 2749

A 3940

Total 13802

 

Grand Total 34158

IndianOil's unique work culture is based on trust, openness and a commitment to creativity and consultation. The organisation identifies each and everyone of its employees as an achiever who will make a difference. The experience and the knowledge gained by its people in building this mammoth organisation is now sought after by other developing countries.

Divisions at IOCL

THE GROUP COMPANIES:

1. Lanka IOC Limited

2. Indian Oil Mauritius Limited

3. Chennai Petroleum Corporation Limited

4. Bongaigaon Refinery & Petrochemicals Limited

5. Indian Oil Technologies Limited.

THE COMPANY: SPREAD

THE COMPANY: BUSINESS

1. REFINERIES:The IndianOil Group of companies owns and operates 10 of India’s 18 refineries with a combined refining capacity of 60.20 million tonnes per annum (1.2 million barrels per day). The IOC Refineries are located at Guwahati (1.0), Barauni (6.0), Koyali (13.7), Haldia (6.0), Mathura (8.0), Digboi (0.65) and Panipat (6.0); IOC subsidiaries are located at Chennai (9.5), Narimanam (1.0) and Bongaigaon (2.35).(MMTPA-Million metric tones per annum, equal to 20,000 barrels per day)

2. PIPELINES:Indian Oil Corporation owns and operates the largest network of crude oil and product pipelines in India. The total network of pipelines is 9273 km with a capacity of 61.72 million metric tonnes per annum. There are 14 Product Pipelines and 3 Crude Oil Pipelines with Koyali- Viramgam - Sidhpur – Sanganer (1056 km; 4.10 MMTPA) and Salaya-Mathura (1870 km; 21.00 MMTPA) as the longest and highest capacity ones repectively.

3. MARKETING:

The year 2005-06 was another performance-driven year for the Corporation, with customers as the single focus of all activities. The year 2006 was being observed as ‘Customer Service Excellence Year’ to further strengthen the employee-customer bonds. The Corporation sold 49.61 million tonnes of petroleum products during the year (including exports of 2.09 million tonnes) as against 50.82 million tonnes (including exports of 1.96 million tonnes) in the previous year. About 1,530 new petrol/diesel stations (retail outlets) were commissioned during the year, taking their total to 11,754. The Corporation also introduced SMS service to customers through mobile phones, conveying product dispatch and customer balance details.The Marketing Mantra for Indian Oil is to continuously provide the best products and services at the most reasonable cost. The "New Look" petrol / diesel service stations selectively have "ConveniO" shopping stores, snap services, quick Lube change, automatic car wash and multi-product dispensing pumps. To facilitate easy transaction, many of our stations accept major credit cards. In fact, IndianOil and Citibank have launched a special co-brand card, the "IndianOil Citibank Card" which is not only accepted at IndianOil petrol stations but at many restaurants, shops, airlines, etc. Also, IndianOil's tie-up with Coca-Cola ensures that selects petrol stations stock and dispenses "Coke" - thus quenching the thirst of the vehicles and the

motorists! A new concept of "Jubilee Retail Outlets" has also been launched to set up petrol / diesel stations on highways with comprehensive value added facilities for various customer segments, namely truckers, farmers, tourists and passenger transport. These include motels, restaurants, parking lots, weighbridges, sale of tyres, batteries, accessories, agricultural machinery repairs and recreational facilities provided selectively. The first such retail outlet was commissioned at Ongole, District Prakasam, Andhra Pradesh in August 1998.

6. RESEARCH & DEVELOPMENT

INDIAN OIL’S RESEARCH & DEVELOPMENT CENTREset up in 1972, IndianOil's Research and Development Centre at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the Corporation and its customers within the country and abroad.

6. PETROCHEMICALS:

The Corporation is continuously striving for growth through integration of its core business with opportunities available in the petrochemicals sector like LAB (Linear Alkyl Benzene, used in the manufacture of detergents) at Gujarat Refinery; PX/PTA (Paraxylene – Purified Terephthalic Acid) at Panipat Refinery; Naphtha Cracker project along with downstream polymer units at Panipat.

7. BUSINESS GAS:

The Corporation took significant steps to strengthen its gas business during the year and sold over 74 trillion British Thermal Units (BTU, equivalent to 1.43 million tonnes) of re-gassified LNG (R-LNG) to various customers, including internal consumption of 7.5 trillion BTU (0.14 million tonnes). City gas distribution project is another emerging growth area for the Corporation. It has, therefore, incorporated a joint venture company with GAIL (India) Ltd. called Green Gas Ltd. in October 2005 for city gas distribution in Agra and Lucknow, to begin with. The Corporation is also pursuing import of natural gas through a transnational pipeline from Iran. IndianOil and GAIL have been nominated as lead companies by the

Government of India for commercial negotiations and project implementation.

The decisions making process of the Company follows the following Channel

BOARD OF DIRECTORS

CHAIRMAN

FUNCTIONAL DIRECTORS

EXECUTIVES

MISSION:

To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services and cost reduction.

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

To attain leadership in developing, adopting and assimilating state-of-the-art technology for competitive advantage.

To provide technology and services through sustained Research & Development.

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

To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity.

To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.

Vision:

A major diversified, transnational, integrated energy company, with national leadership and a strong environment conscience, playing a national role in oil security & public distribution.

Objectives of the company:1. To serve the national interests in oil and related sectors in accordance and

consistent with Government policies. 2. To ensure maintenance of continuous and smooth supplies of petroleum

products by way of crude oil refining, transportation and marketing activities and to provide appropriate assistance to consumers to conserve and use petroleum products efficiently.

3. To enhance the country’s self-sufficiency in crude oil refining and build expertise in laying of crude oil and petroleum product pipelines.

4. To further enhance marketing infrastructure and reseller network for providing assured service to customers throughout the country.

5. To create a strong research & development base in refinery processes, product formulations, pipeline transportation and alternative fuels with a view to minimising/eliminating imports and to have next generation products.

6. To optimise utilisation of refining capacity and maximise distillate yield and gross refining margin.

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

8. To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation.

9. To earn a reasonable rate of return on investment. 10.To avail of all viable opportunities, both national and global, arising out

of the Government of India’s policy of liberalisation and reforms. 11.To achieve higher growth through mergers, acquisitions, integration and

diversification by harnessing new business opportunities in oil exploration & production, petrochemicals, natural gas and downstream opportunities overseas.

12.To inculcate strong ‘core values’ among the employees and continuously update skill sets for full exploitation of the new business opportunities.

13.To develop operational synergies with subsidiaries and joint ventures and continuously engage across the hydrocarbon value chain for the benefit of society at large.

SWOT Analysis for IOCL

External environment

Opportunity: - The IOCL has much opportunity in the present market conditions. This is because the petroleum products are become a need for everyone and still contains a lot of scope for customization. The various opportunities are listed below.• Since the company has the maximum no. Of out lets and also the maximum no. Of refineries in India, it can very easily go for extension at any point of time, and can introduce any new products, which will get support from its huge market network.• The company can make the buying process more easy for the customers, by implying many more schemes in the range of XTRAPOWER AND XTRAREWARD.• The company can think over the issue to build its own pipelines, so that it will be a independent player and it will also support its aviation fuel supply.• Company have a great scope in E&P. It is already involves in E&P but only in a very limited scale.

Threats: - since the company is the market leader in the field , so have maximum threats from the other players and many other issues. The lists of threats are given below.• The foreign players with more advanced technology are the biggest treatfor the company.• The crude oil supply is also a big issue in front of the company, becausethe company cannot fix its price and so, some time had operate in lossalso. it is the biggest problem because the maximum part of their crude isbeen imported.• In future the market will welcome more private players, which will eat upits market share.• If the Govt. Policies allow the private players to set their own price, the theprivate player can seriously harm the market share of IOCL.

Internal environment

Strengths• IOC controls 10 refineries, by virtue of which it has a total share of around 40% of India’s overall refining capacity. IOC has also acquired equity stakes in CPCL and BRPL, and in 2001, these refineries became subsidiaries of IOC.• 58% of IOC’s refining capacity is located in the Northern and Western regions, which are high demand and high growth areas.• Although its refineries are located the interior of the country, and not near the major ports IOC has a very strong distribution network by virtue of having a share of 48% in the country’s product pipelines. The total capacity of these product pipelines is 49.79 MMT.• IOC also acquired management control of the marketing company IBP, thereby strengthening its position in these activities. It also has a dominant share in all segments in terms marketing infrastructure. Its network includes 19830 retail outlets, 8000 LPG distributors, and 6492 kerosene/LDO dealers.• By virtue of entering into extensive joint venture agreements, and of its own initiative as well, the company has a presence in various other related activities such as petroleum storage, pipelines, lube additives, exploration, petrochemicals, gas, training and consultancy, etc.• The company has already entered overseas markets such as Sri Lanka, Maldives, and Oman and is presently considering entering Turkey through a JV. The company is in talks with Caliak of Turkey to set up a 10 million TPA grassroot refinery with an investment of $2 billion and establish retail business. IOC is also weighing the possibility of entering Indonesia. IOC has also started exploring the overseas markets for increasing its scope of operations. Its interests include downstream activities in Sri Lanka, Maldives, Oman, and Nepal; interest in the lubes business in Maldives, Dubai, Bangladesh, Sri Lanka, etc; among others.

Weakness:-the company is the market leader in the industry, but still it had many weaknesses.The list is given below.• The major weakness for the company is the R&D. The company starts working on it.• The petrochemical product development technology is another weakness for the company.• The technological drawback, as compared to some major foreign player is another weakness for the company.

CHAPTER-3

REVIEW OF LITERATURE

Literature Review

This study attempts to evaluate employee satisfaction regarding welfare facilities of INDIAN OIL CORPRATION LIMITED (IOCL),PATNA. It focus on the relative importance of employee satisfaction factor regarding welfare facilities. It also investigates and measures the overall welfare facilities of IOCL. During survey most of IOCL employees said that their employee welfare facilities need to be made more effectively involved than at present welfare facilities of INDIAN OIL CORPORATION LIMITED,(PATNA). Though the employees of IOCL are satisfied their with all welfare facilities but they think that just need to make a more effectively and standard quality Today welfare is generally accepted by employer. The state steps in to widen Area of applicability only welfare is being looked at as a social might of workers. The welfare committee has described it as social security measure that contributes to improve the condition under which workers are employed in India. (1969 report).

Through this research I try to find out to determine employee satisfaction perceptions by using questionnaire. Research has shown that there are many welfare facilities that can be gives employee satisfactions. like Transportation facility and Residential facilities.

A review of literature on the public sector like IOCL indicates that employment

IMPORTANCE OF EMPLOYEE WELFARE

The significance of welfare measures was accepted as early as 1931, when Royal Commission on labour stated that benefits which go under this nomenclature are of great importance to the worker who is unable to secure by himself. The scheme of employee welfare may be regarded as “a wise investment” which should and usually does bring a profitable return in the form of greater efficiency .Twenty year later; the planning commission realized the importance of employee welfare, when it observed that “In order to get the best out of a worker in the matter of production, working

conditions require to be improve to a large extent. The worker should be at least having the means and facilities to keep himself in a state of health and efficiency. This is primarily a question of adequate nutrition and suitable housing condition. The working condition should be such as to safeguard his health and protect his against occupational hazards. The work place should be providing reasonable amenities for his essential needs. The worker should also be equipped with the necessary technical training and certain level of general education.

Employee welfare work, thus serves the following purposes

Enables worker to have a richer and more satisfying life.

Raises the standard of living of the employees by indirectly reducing the burden on their pocket. Welfare measures will improve the physical and psychological health of employees, which in turn, will enhance their efficiency and productivity.

Absorbs the shocks injected by industrialization and urbanization on workers.

Promotes a sense of belonging among workers, preventing them resorting to unhealthy practices like absenteeism, labour turnover, Strike, etc.Welfare work make the services in mills more attractive to workers. It improves the relation between employers and employees. “It promotes the real change of heart and a change of outlook on the part of both the employers and employees”.

Prevent social evils like drinking, gambling, prostitution, etc., by improving the material, Social and cultural condition of work.

OBJECTIVES OF EMPLOYEE WELFARE

Employee welfare has the following objectives:

i. To provide better life and health to the workers.ii. To make the workers happy and satisfied.

iii. To relieve workers from industrial fatigue and to improve intellectual, cultural and iv. Increased job satisfaction and morale among employees.

v. Increased employee motivation.vi. Increased efficiencies in processes, resulting in financial gain

vii. Increased capacity to adopt new technologies and methods

viii. Increased innovation in strategies and products.ix. Reduced employee turnover.x. Enhanced company image, e.g., conducting ethics training (not a good

reason for xi. Risk management, e.g., training about sexual harassment, diversity

training

Sometimes Employee, welfare used by employees to combat the influence of outside agencies on their employees Employee welfare measures are often undertaken with a view to avoiding payment of tax on surplus and, simultaneously ,building up better relations with employee. The desire to show off and advertise their concern for employee are also factor which play their part in persuading employers to go in for employee welfare schemes. The bigger the organization, the larger is the expenditure incurred on such advertisement. The motives that lie behind employee welfare schemes are therefore, often complex, for human nature varies from person to person. Certain motivation characteristics, however dominate in each successive period of the development. of employee welfare movement ,and this is the clearly seen in the broad historical perspective of industrial welfare and initiate measures for this purposes ,other organization in the same industrial area many follow suit , so assist in the spread of employee welfare movement in the around that particular industrial area.

CHAPTER-4

THEORETICAL FRAMEWORK

Conceptual framework of employee welfare

Characteristics and Principles of Employee Welfare

Classification of Employee welfare

Statutory provisions for employ welfare faculties

Basic welfare activities at IOCL

The employee welfare facilities provided by IOCL as per

Statutory provisions

CONCEPTUAL FRAMEWORK

The term welfare suggests many ideas, meanings connotation, such as the state of well-being, health, happiness, prosperity, and development of human resources. The concept of welfare can be approached various angles. Welfare has been described as a total concept. It is a desirable state of existence involving physical, mental, moral and emotional well-being. All those four elements together constitute the structure of welfare on which is totally based.

The social concept of welfare implies the welfare of man, his family and his community. There in interconnection of these three aspects in the sense that all three work together or individually supplement one another, in a three-dimensional approach, each serving as ends and means. Welfare is called a relative concept, for it is related to time and space. Changes in it have an impact on the system of welfare as well. As welfare is growing and dynamic, the welfare potential changes, as a result of which its content keeps on varying and has to keep pace with the changing times. Also the characteristics of welfare vary, for it depends largely on the conscience of the community, the scientific advancement and the developments of a all fields. Its meaning and components therefore differ from country and from place to place.

Welfare is also a positive concept. In order to establish minimum level of welfare, it demands certain minimum acceptable condition of existence, biologically and socially. This positive nature calls for the setting up of the minimum desirable standards necessary for certain components of welfare, such as health ,food ,clothing housing ,medical assistance, insurance ,education recreation ,job security, and so on ,thus it has to specify the starting point for building level welfare. The concept of employee welfare originated in the desire for a humanitarian approach to the suffering of the working class. Latter, it becomes a utilization philosophy which worked as a motivating force for employee and those who were interested in it.

It is the work which is usually undertaken within the premises or in locality of the undertakings for the benefit of the employees and the members of their families.

The work generally includes those items of welfare which are cover and above what is provided by statutory provisions or required by the custom of industry and what the employees expect as a result of contract of service from the employers.

The purpose of providing welfare amenities is to bring about the development of the whole personality of the employee-his social, psychological, economic, moral, cultural, and instinctual development to make him a good citizen and good member of the family.

These facilities may be provided voluntarily by progressive and enlightened entrepreneurs at their own accord out their realization of has to work in an entirely strange atmosphere, which create problems of adjustment.

The working environment in a factory/mine adversely affects the workers’ health because of the excessive heat or cold, noise odors, fumes dust and lack of sanitation and pure etc. lead to the occupational hazards. These have, to therefore, to be held in check by providing ameliorative services, protective device and compensatory benefits following of accident or injury or disablement. This has been to as “long arm of the job which is stretches out its adverse effects on to the worker long after his normal 8-hour.” Hence need for provision of welfare services within the premises of the factory, mine or plantation.

When employee, who come from rural areas to work in factory, he has to work and live in unhealthy, congested factories and slum areas, with no outdoor recreation facilities. To escape from the tiring condition of his tedious and tiresome job, he absent himself becomes irregular and is often undisciplined. Hence the need for providing welfare services arises. For whatever improvement in the conditions of the work and the life of the employees, whatever leads to increasing adaptation of the worker to his job, whatever makes him contended lesion his desire or need to leave the factory for a time and lighten for him the burden of this social invasion of the factory.

CHARACTERISTICS OF EMPLOYEE WELFARE

It is the work which is usually undertaken within the premises or in locality of the undertakings for the benefit of the employees and the members of their families.

The work generally includes those items of welfare which are cover and above what is provided by statutory provisions or required by the custom of industry and what the employees expect as a result of contract of service from the employers.

The purpose of providing welfare amenities is to bring about the development of the whole personality of the employee-his social, psychological, economic, moral, cultural, and instinctual development to make him a good citizen and good member of the family.

These facilities may be provided voluntarily by progressive and enlightened entrepreneurs at their own accord out their realization of has to work in an entirely strange atmosphere, which create problems of adjustment. The working environment in a factory/mine adversely affects the workers’ health because of the excessive heat or cold, noise odors, fumes dust and lack of sanitation and pure etc. lead to the occupational hazards. These have, to therefore, to be held in check by providing ameliorative services, protective device and compensatory benefits following of accident or injury or disablement. This has been to as “long arm of the job which is stretches out its adverse effects on to the worker long after his normal 8-hour.” Hence need for provision of welfare services within the premises of the factory, mine or plantation.

When employee, who come from rural areas to work in factory, he has to work and live in unhealthy, congested factories and slum areas, with no outdoor recreation facilities. To escape from the tiring condition of his tedious and tiresome job, he absent himself becomes irregular and is often undisciplined. Hence the need for providing welfare services arises. For whatever improvement in the conditions of the work and the life of the employees, whatever leads to increasing adaptation of the worker to his job, whatever makes him contended lesion his desire or need to leave the factory for a time and lighten for him the burden of this social invasion of the factory.

PRINCIPLES OF EMPLOYEE WELFARE

Employee welfare is dependent on certain basic principles, which must be kept in mind and properly followed to achieve successful implementations of welfare programmes.

Principles of Social Responsibility: Industry, according to these principles, has an obligation or duty towards its employees to look after their welfare. The constitution of India, in its directive principles of state policy, also emphasize this aspect of employee welfare.

Principles of adequacy of wages: Employee welfare measures cannot be substitute for wages. Workers have right to adequate wages. But high wage rate alone cannot create healthy atmosphere nor bring about a sense of commitment on the part of workers. A combination of social welfare economic welfare together would achieve good results. Principle of Efficiency: This plays in impotent role in welfare services and is used on this relationship between welfare and the efficiency, tough it is difficult to measures this relationship. Whether the one accept the social responsibility of industry or not, the employer quite often accepts responsibility for implementing such employee welfare measures as would increase efficiency. For instance, programmes for housing, education and training, the provision of a balanced diet and family planning measures are some of the impotent programmes of employee welfare which increase the efficiency of the workers, especially in underdevelopment or developing countries.

Principle of re-personalization: the development of human personality is given here as the goal of industry welfare which, according to this principle should contract the baneful effects of the industrials system. Therefore, it is necessary to implement employee services, both inside and outside the factory, that is provide intra-mural and extra-mural employee welfare services.

Principle of Totality of Welfare: This emphasize concept of employee welfare must speared throughout the hierarchy of an organization. Employees at all level must accept this total concept of employee welfare because, without this acceptance, employee welfare programmes will never really get off the ground.

Principle of Co-ordination or Integration: This plays an important role in the success of employee welfare. Here again, welfare is a total concept. From this angel, a co-ordinate approach will promote a healthy development of the worker in his work, home and community. This is essential for the sake of harmony and continuity in employee welfare services Principle of Association or Democratic Value: The co-operation of the worker is basis of this principle. Consultation with and the agreement of workers in the formulation and implementation of the employee services are very necessary for their success. Moreover, worker allowed to the participate in planning these programmes get keenly interested in their proper implementation this principle is based on the assumption that the worker is “mature and rational individual”. Industrial democracy is the driving force here. Workers are also develop are sense of pride when they are made to feel that employee welfare programmes are created by them and for them. Principle of Responsibility: This recognizes the fact that both employers and workers are responsible for employee welfare. Trade unions are involved in these programmes in healthy manner, for basically employee welfare belongs to the domain of trade union activity. Further, when responsibility is shared by difficult group, employee welfare work becomes simpler and easier. Accordingly, various committees are elected or nominated and various powers and responsibilities in the welfare field are delegated to them. For instance, safety committee, the canteen committee and sport committee all work in their respective areas with specific purposes. The function over periods, and when thy dissolved, fresh committees are elected or nominated.

Principle of Accountability : This may also b called the principle of Evaluation. Here one responsible person gives an assessment or evaluation of existing welfare services on a periodical success of employee welfare programmes. This is a very necessary, for then one can judge and analyze the success of employee welfare programmes. Such scientifically made evaluation is lacking in employee welfare services in Indian industries.

Principle of Timeliness: The timeliness of any services helps in its success. To identify the employee problem and discover what kind of

helps is necessary to solve it and when to provide this help are all very necessarily in planning employee welfare programmes. Timely action in the proper direction is essential in any kind of social work.

Principle of Self-help: Last but not the least in importance, is the fact that employee welfare must aim at helping workers to help themselves in the long run. This helps them to become responsible and more efficient.

CLASSIFICATION OF EMPLOYEE WELFARE FACILITIES

Employee welfare services may be classified into two categories.Intramural Extramural

Drinking Water

Toilets

Crashes

Washing and bathing facilities

Rest Shelter

Uniforms and protective

clothing

Recreation Facilities

Canteens

Subsided food

Medical aid

Housing

Education

Maternity benefits

Transportation

Sports Facilities

Leave travel

Vocational Training

Holiday Homes

Cooperatives stores

Fair price

Social Insurance

Intramural activities which is provided within the establishment such as latrine, urinal, crashes, rest centre, canteen, uniforms, library, medical aid.etc,

An extramural activity which are undertaken outside the establishment such as Family planning, child benefits, cooperative stores, credit societies etc.

Employee Welfare work may be also divided into two categories: (i) statutory welfare work comprising the legal provisions in various pieces of labour legislation (ii) Voluntary welfare work includes those activities which are undertaken by employers for their workers voluntary. Many employers. Nowadays, offer the following welfare amenities.

1. Education: A scheme of workers’ education was envisaged on an all India basis by the Government of India, way back in 1957The scheme had four main objectives.

i. To develop strong unions through trained officials and more enlightened members.

ii. To develop leadership from the rank and file.iii. To equip organized labour to take its place in a democratic society and

discharge its social and economic functions.

iv. To promote, among workers a greater understanding of the problems of their economic environment and their privileges obligations as union members and officials and as citizens.After assessing the scheme, the National Commission on Labour (NCL), felt that the scheme is not perfect and requires improvement. The committee on labour welfare, 1969,recommended that trade unions should assume an active role in education workers and run school for proportioning literacy among the children of workers. To be effective, progrmme of workers’ education should be formulated, administered and implemented by the trade unions themselves.

2. Housing: Housing is primarily need of employees’ family in civilized life. Without a roof to cover his head, the worker naturally feels frustrated about his poor standard of living in big cities. Good houses possibility of human life, happiness and health; bad houses spell squalour, drink dresses immorality crime etc. recogonizing the need for housing accommodation, an industrial Housing Scheme was introduced in 1952. Under this scheme, the Central government offers loan to industrial worker for constructing houses at confessional rates. The low income group Housing scheme (1954), subsidised housing scheme for economically weaker section of society (1952), Rural House-sites-cum-hut construction scheme for landless workers (1971) has also been introduced to reduce the housing storage to workers.

The government has also introduced housing scheme for miners and plantation in early 1950. Housing scheme for dock workers was drawn up in 1964.

3. Transportation: The Committee of Employee welfare, 1969 recommended the provision of transport facilities to worker so that they can reach the work place punctually and comfortably. Must employers have, however recognized the workers’ need for transport service and therefore responded favioouraly by providing company vehicles to workers in major industrial centre especially in the private sector. They have also introduced innovating financing schemes in recent times enabling workers to buy their own bicycles, scooters, moter cycle etc. 4. Recreation: Though there is no statutory stipulation in this area, progressive employers both in the public and private sector (like the Tatas, BHELL,Air India, Infosys technologies, Hughes Software System,NIIT Cadbury,Ranbaxy,Railway and Defiance Services have) consciously offered Facilities for recreation sports and cultural activities. For example companies like NIIT and TISCO have appointed a Chief fun Officer to take care of parties and function held on every Friday.

5. Other Facilities: These are basically intended to improve the comfort level of workers while at work and include the following :

I. Canteen, restrooms and lunchroom: Canteen established inside factories generally

offer food at subsidies rates. In modern organizations, food courts offering a variety of

continental and inter continental cuisine have a become quite popular in recent times.

II. Washing Facilities, Medical aid, Leave travel concession: Most factories have

first –aid facilities to take care of minor injuries.Reimburshment of medical expenses

actually incurred is also increasingly favuored nowadays.

III. Consumer corporative stores: the Indian labour conferences in 1963 recommended

the setting up consumer cooperative stores in all industries establishment including

plantations and mines employing 300 or more workers. the employer is expected to

extend help in the from of share capital, working capital, loan at concessive rates etc. the

industrial truce Resolution,1962 aimed at keeping prices of essential item low by opening

a sufficient number of fair price shop for workers .

The relevant welfare amenities contained in the various employee

enactments have been listed below:

Factories: The Act males obligatory on the employer to provide: Cool, clean drinking,

latrines and urinal and washing facilities.

One first-aid box for every 150 employees

One canteen in an establishment which employees more than 250 workers.

Rest shelter or rest room and suitable lunch room than in all establishment

employing 150 workers or more; and

A crèches in each factory establishment employing more than 30 women.

State government has been empowered to frame rules to prescribe standard and to grant

exemption, whenever necessary. They have laid down elaborate standards for all welfare,

amenities, keeping in view mainly the requirements of the workers.

Mines: Provision for the drinking water, conservancy, first aid, and crèche has been laid

down in the act. the mines rule provide that :

An ambulance room shall be maintained under the charge of the qualified staff as

every mine employing more than 500 or more person.

Shelters shall be constructed for taking food and rest at every mine employing

150 or more persons on any one day of the previous calendar years, as also near loading

places, work shop or open cast workings in mines employing 24 0r more persons.

A canteen is to provided in every mine having 250 or more persons.

Plantation: Drinking water, conservancy services, medical facilities, a canteen, a

crèche, recreational facilities and provisions of umbrella, blanket and raincoat have been

made statutory; a canteen has to be set up on plantation with 150 workers or more and a

crèche where 50 or more women are employed.

Port and Docks: Canteen facilities are provided for workers in port and at docks

under the Docks workers (Safety Health & Welfare) scheme 1961, which apply to all

major ports and docks in the country. Housing education and recreation facilities are

provided for port worker by the port Trust and paid out of the Trust employees’ welfare

fund.

STATUTORY PROVISIONS FOR EMPLOYEE WELFARE

Employers are required to offer welfare to workers under different labour Laws these are

as follows:

1. The Factories Act, 1948

The Act provides the following service to the workers.

Washing facilities to male and female worker separately

Facilities for storing and drying clothes

Facilities for occasional rest for workers who work in standing position for long

long.

First aid box or cupboards- one for every 150 workers and the ambulance facility if

are more than 500 workers.

Canteens, where more than 250 workers

Shelters, rest-room and lunch rooms where over 150 workers are employed

Crèche , if 30 or more workers are employed

Welfare officer, if 500 or more workers are employed

Chapter V (Secs. 42 to 50) of the Act deals with facilities for the welfare of

workers .The various provisions in the regarded as follows:

5. Washing facilities (Sec. 42). In every factory, adequate and suitable facilities

(Severalty and screened for those use of male and female workers) shall be provided and

maintained for the use of the workers therein and such a facilities shall be conveniently

accessible and shall be kept clean.

6. Facilities for Sitting and drying clothing (Secs 43.). The Sate Government may

makes rules requiring the position of suitable places for keeping clothing not worn during

working hours and for the drying the wet clothing in respect of any factory or class of

factories

7. Facilities for sitting (Sec.44) (i) Provision of sitting arrangement for workers

obliged to work in a standing position – In every factory, suitable arrangement for

sitting shall be provided and maintained for all workers who are obliged to work in

standing position.

8. (ii) Provision of sitting arrangement for workers which can be done in a sitting

position.- I f the worker in any factory engaged in a particular manufacturing process or

working in a particular room are able to their work efficiency in a sitting position , the

chief Inspector may require the occupier of the factory to provide such seating

arrangement as may be practicable [Sec.44(2)].

9. (iii) Exemption. – The State government may, by notification in the official gazette,

exempt any factory or class of factories or manufacturing from the application of the

provisions of Sec.44 [sec44 (3)].

4. First-aid appliance (Sec.45) (i) At least one first-at box with prescribed contents

for every 150 workers – There shall be in every factory be provided and maintained so

as really associable during all hours , first-aid boxes or cupboards with prescribed

contents. There shall be at least one such box for every workers ordinary employed at any

one time in the factory [sec.45 (1)].

(ii)First-aid box to have prescribed contents - Only the prescribed contents shall be

kept in a first-aid box or cupboard. [sec.45 (2)].

(iii)First-aid box to be in the charge of reasonable person – Each first aid box or

cupboard shall be kept in the charge of separate of responsible person who holds a

certificate in the first-aid treatment recognized by the state Government. Further, such

person shall always be readily available during the hours of the factory [sec45 (3)].

(iv) Ambulance room in a factory employing more than 500 workers- In every

factory wherein more than 500 workers are ordinarily employed there shall be provided

and maintained an ambulance room containing the prescribed.

The room shall be in the charge of such medical and nursing staff as may be

prescribed and those facilities shall always be made readily available during the working

hours of the factory [sec.45(4)]

5. Canteens (Sec.46)(i)- Canteen in factory employing more than 250 workers – the

state Government may make rules.- The state government may make rules requiring

may be that in any specified factory wherein more than 250 workers are ordinary

employed, a canteen or canteen shall be provided and maintained by the occupier for the

use of workers [sec.46(1)] .

(ii) Prevision in rules. The rules made by state government as to canteen may provide

for (a) the date which canteen shall be provided, (b) the standard in respect of

construction, accommodation, furniture and other equipment of the canteen, (c) the

foodstuffs to be saved therein and the charges which may be made thereof, (d) the

constitution of the managing committee for the canteen and representation of the workers

in the management of the canteen (e) the item of the expenditure in the running of the

canteen which are not be taken into account in the fixing the cost of foodstuffs and which

shall be born by the employer and, (f) the delegation to the chief inspector, subject to

which conditions as may be prescribed, of the power of the power to make rules under

clause(c) [Sec.46 (2)].

6. Shelters, rest rooms and lunch rooms (Sec.47) (i) Provision for shelters, rest rooms,

lunch rooms in factories employing more than 150 workers. In every factory wherein

more than 150 workers are ordinary employed, there shall be provision for shelters, rest

rooms, and suitable lunch room where workers can eat meals brought by them with

provision for drinking water, However, any canteen maintained in accordance with the

provision of sec. 46 shall be regarded as part of this requirement where a lunch room

exist, no worker shall eat any food in the workroom [sec.47 (1)].

(ii) Shelters etc to be sufficiently lighted ventilated and cooled. The shelter or rest

rooms or lunch room shall be sufficiently lighted and ventilated and shall be maintained

in cool and clean condition [Sec. 47 (2)]

7. Crèches (Sec.48). (i) Provisions of crèches in factory employing more than 30

Women workers. In every factory where more than 30 women workers are ordinarily

Employed, there shall be provided suitable room or rooms for use of children under

the age of 6 years of such women [Sec 48(1)]

(ii) Crèches to adequately lighted and ventilated and to be under the charge of

trained women. Rooms for use of children of all children shall be provide adequate

accommodation, shall adequately lighted and ventilated. Further they shall be maintain in

and clean and sanitary condition and shall be under the charge of women trained in the

case of children and infants [sec.48 (2)]

(iii) Prescription of rules by the state government. The state government may take

rules prescribing the location and standard in respect of construction, accommodation,

furniture and other equipment of rooms for use of children. It may also make rules for the

provisions of additional facilities for the care of children belonging to women workers,

including suitable provisions of facilities (a) washing and changing their there clothing,

(b) of free milk or refreshment or both for the children, and (c)for the mothers of children

to feed them at the necessary intervals.[Sec.48(2)]

8. Welfare Officers (Sec.49). (i) Employment of employee welfare officers in factories

employing 500 or more workers. In every factory where 500 or more workers are

ordinarily employed the occupier shall employ in the factory such member of welfare

officers may be prescribed [Sec.49 (2)]

(ii) Duties qualification and Condition of Services to be prescribed by the State

government. The State government may be prescribed by the duties, qualification and

condition of services of welfare officers [Sec.49 (2)].

Even in factory (say ,a sugar factory ) employs over 500 worker only for a few month in

the year and not continuously, the occupier shall employ the prescribed number welfare

officers .

THE EMPLOYEE WELFARE FACILITIES PROVIDED BY INDIAN

OIL CORPORATION LIMITED AS PER STATUTORY

PROVISIONS

MEDICAL FACILITIES:

1.1 Employees and their dependents residing with them under the same roof are entitled to receive medical attendance from an Authorised Medical Attendant, as defined under the Medical Rules, either under Allopathic or Homoeopathic System. The expenditure incurred by an employee/ dependent in obtaining medical attendance under these rules in India will be reimbursed by the Corporation, subject to certain provisions as indicated in the Medical Rules. In case of hospitalisation of the employee or his dependent family members, if an employee makes a request for an advance to meet the emergency expenses, an amount of Rs.10,000/- to Officers & Rs.7,000/- to workmen is given as Medical Advance w.e.f. 05.06.2001. The authority to approve the Medical Advance is DGM (HR) of Region/GM(A&W) DGM(A&W)/CM(A&W), HO for officers and for workman location-in-charge.

1.2 Some reputed hospitals / nursing homes have been nominated at 4 Metro cities, State Capitals etc. where the employees and their dependent can have both outdoor and indoor treatment. The reimbursement of expenses incurred on hospitalisation except diet charges is made limited to the charges for such treatment related to the room entitlement of the employee.

1.3 If the spouse of an employee is employed in another organisation (Private or Govt.) whether at the same station or elsewhere, which provides medical facilities in cash or kind or both, the spouse shall be entitled to the medical facilities under the medical rules only if he/she does not avail of the medical facilities in the organisation, in which he/she is employed. The employee shall give his/her option in writing whether his/her spouse who is employed in another organisation, shall avail of the medical facilities of IOC or of the organisation, in which he/she is employed and shall certify to the effect that he/she is not availing medical facilities in cash or kind or both, from any other sources. (Cir. 79/2001)

1.4 Where the husband of a female employee is posted/self employed at a place other than the place of posting of the female employee, but family is residing with the female employee, then the medical facilities shall not be admissible to the husband of the female employee concerned. In case, however, family retention permission has been obtained by the employee and the husband resides along with the other family members at the place of retention of the family, the medical facilities can be extended to him provided the other condition of submission of a certificate that he is not availing medical facilities in cash or kind or both from any other source, has also been met. (Cir.59/2001)

1.5 A married female employee, like any other regular employee of the Corporation, may declare her parents as dependent on her provided they are wholly and exclusively dependent on the female employee and are permanently residing with her under the same roof. Parents whose total monthly income exceeds Rs.9000/- are not, however, considered as dependent. The provision that the married female employee has to satisfy the management regarding the dependency of her parents

particularly when her brother(s)/ sister(s), can take care of them, has been removed.

1.6 Expenses incurred by an employee on treatment of Drug abuse / alcoholism for self and/or eligible dependent family member(s) shall not be admissible for reimbursement under the Medical Rules of the Corporation.

1.7 Employees are entitled to claim reimbursement of expenses on Spectacles / Contact Lenses for self & family members on self-certification basis during the financial year. For reimbursement from the financial year 2006-07 onwards, the employees will submit their reimbursement claim by 15th April through the existing medical expenses claim-cum-voucher and the payment will be made through salary for the month of April. (Cir.2005/HR/76)

1.8 In case where both husband and wife are employees of IOC and posted at the same or different stations, each one of them may claim medical benefits in individual capacity like any other employee at their option. They may divide the eligible dependents among themselves as per their convenience subject to (i) only one of them would be permitted to declare his/her parents as dependent on meeting the eligibility conditions; (ii) only one of them would be permitted to claim reimbursement of expenses on spectacle / contact lenses upto the prescribed ceiling and (iii) The option to claim reimbursement in individual capacity once exercised will not be changed during the financial year. The spouse would have to give additional information every year in the dependency proforma like name, employee number, station of posting, etc. and also declare that who among them will claim medical benefits in respect of his/her dependent parents alongwith particulars of parents and similarly who will claim reimbursement of spectacles/ contact lenses. (Cir.2006/HR/04)

1.9 The admissibility of medical expenses on treatment for self and/or either eligible family members on the prescription given by employees’ spouse, who is otherwise qualified as an Authorised Medical Attendant (AMA) under Medical Rules, shall be restricted as under:

i) On prescription/advice by the spouse (AMA) for self, medical benefits shall not be admissible, and

ii) On the prescription/advice by the spouse (AMA) for other family members and employee, medical benefits shall be admissible only during emergency.

1.10 Tariff Revision at Nominated Hospitals

At the time of nomination of hospitals, the tariff is finalized which is mutually agreed by both the parties i.e. the Corporation and the Hospital. Any revision of hospital tariff to be agreed and accepted by the Corporation, has to be negotiated by a committee and thereafter to be approved by the Competent Authority. Human Resource Department

constitutes a committee of three officers (one from Finance Deptt.) and based on the committee’s recommendation, the Regional Head / ED(HR) in HO approves the revision for hospital tariff. (Clarification issued by DGM(A&W), HO vide his IOM no. Admn/1801/Medical dt. 23.10.09)

1.11 Dependency

a) The combined income ceiling for determining dependency of parents for the purpose of Medical facilities is Rs.9000/- p.m. w.e.f. 1.10.09. The income ceiling of Rs.9000/- p.m. is applicable in respect of parents only and would not apply in the case of children. The ceiling for children will remain Rs.3000/-. Dearness Relief on Pension sanctioned after December 1985 to a pensioner need not be taken into account for determining income or the dependency of the parents in the context of entitlements towards Leave Travel Concession, Medical Facilities and Transfer benefits.

b) In the event a male employee who has opted for medical facilities for his dependents including the parents, expires while in service, the spouse who is also an employee of the Corporation, can draw medical facilities for her dependent in-laws (who were earlier dependent on her husband), if she so desires.

c) The following are not deemed to be forming part of the income:

All money receipts drawn by a person during a financial year as one-time receipts like contributory provident fund, gratuity, commuted gratuity, insurance benefits, etc.

Scholarship and Fellowship money though received by an individual even on recurring basis, since these are paid in recognition of the meritorious performance and to sustain the continuity of education or for pursuing a project assignment.

Monthly benefit received under the IOCL Employees’ Superannuation Benefit Fund Scheme, which is a Contributory Scheme is to be treated as regular income as for assessment of income for determining dependency.

d) The regular recurring income received from all sources like interest on bank deposits, security, dividend, pension under any scheme (excluding interim relief received by a Govt. pensioner), rentals from house/land holdings, employment (full time/part time), return from investments etc. would be reckoned for assessment of the income.

1.11 Reimbursement towards cost of hearing aids:

a) In keeping with the objectives of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, an employee with hearing impairment on the prescription /

recommendations from two ENT Surgeons of Government / Nominated / Corporation’s own Hospitals based on the hearing loss and its attendant disability supported by audiometric evidence, will be allowed reimbursement of the cost of per Digital Hearing Aid upto a ceiling of Rs.30,000/- (inclusive of taxes).

b) The ceiling for reimbursement of the cost of per hearing aid would be Rs.10,000/- (inclusive of taxes) under the existing provisions of the Medical Rules. In these cases the prescription / recommendation of one ENT Surgeon shall suffice.

c) The facility of repair and maintenance of hearing-aid will be admissible once a year limited to 10% of the maximum cost prescribed upon production of receipts, to digital as well as non-digital hearing aids.

d) Replacement of hearing aid once in a period of 4 years will be admissible.

The above would apply to employees and eligible dependent family members.

1.12 Reimbursement of Blood Glucose Strips:

a) As per Medical Rules, in the case of Diabetes, reimbursement in respect of cost of periodical consultation and tests, anti-diabetes drugs regularly administered are permissible. Cases of treatment (other than hospitalization) of the diabetes after the initial stages of six months are referred to Competent Authority for decision in regard to the admissibility or otherwise of reimbursement of the expenses other than on normal periodical consultation and test and anti-diabetes drugs.

b) Reimbursement of cost of blood glucose diabetes strips limited to 10 (ten) nos. per patient per month in respect of employees and their dependents suffering from diabetes, duly supported by AMA’s prescription and cash memo of chemist would be available beyond the items reimbursable as above.

1.13 Reference of employees / dependents for outstation medical attendance:

As per Medical Rules, reference to an outstation specialized Hospital / Institution is permitted for serious ailments. During hospitalization, the employee avails bed/ room as per prescribed ceiling for his category. Many times reference is made to a hospital where bed charges are very high compared to entitlement of the employee even though hospitals with cheaper accommodation tariff with similar medical facilities are available at the same referred station. This puts employee to monetary loss.

Company Doctors while referring a patient for outstation treatment should keep in mind the bed entitlement of the employee and the tariff of the hospital. Employees / patients should be advised of the differential in entitlement and actual expenditure on accommodation and that all inadmissible expenses as per Medical Rules will be recovered.

A Copy of reference letter / communication to the hospital, indicating the bed entitlement of the employee should be endorsed to the employee also intimating that all inadmissible expenses as per Medical Rules will be recovered from him/her.

1.14 Ceilings prescribed under Medical Rules on various items is attached as ANNEXURE–E.

2. LONG SERVICE AWARD:

2.1 On rendering “good and satisfactory service” of 15, 25, 30 & 35 years by our regular employees, the Corporation gives Long Service Award, as under:

Long Service Award Entitlement

15 Years 05 gm Gold Coin (24 ct.)25 Years 10 gm Gold Coin (24 ct.)30 Years 20 gm Gold Coin (24 ct.)35 Years 20 gm Gold Coin (24 ct.)

2.1 The Special Leave without Pay granted to female employees to join their husbands at outstations abroad would not be reckoned as service period for the issue of Long Service Award.

2.2 If an employee is under suspension or undergoing departmental enquiry proceedings during the year in which Long Service Award is presented, he will not be eligible to receive the award till the suspension/enquiry proceedings are completed.

2.3 If any punishment has been imposed on an employee during the year in which the Long Service Award is presented, he will not be eligible to receive the award in that year.

2.4a) If any punishment has been imposed on an employee at any time in the past, prior to the year in which the Long Service Award is presented, the same will be ignored while computing the required eligibility period of service.

b) If an employee is under suspension or undergoing departmental inquiry proceedings during the year in which long service award or the award given at the time of superannuation is to be presented, the employee shall not be considered eligible to receive the same till the suspension/inquiry proceedings are completed.

c) If on conclusion of the inquiry proceedings, the employee is exonerated, the serving employee shall be given the award on the earliest due date of giving the award along with other eligible employees. In case of a retired employee the award shall be given immediately.

d) In case where caution / warning letter has been issued to a serving / retired employee on conclusion of the enquiry proceedings, she / he would receive the Long Service Award in the same manner as in the case of a serving / retired employee who is exonerated, on conclusion of the enquiry proceedings. Further, if the employee requests to receive the award immediately after she/ he has been exonerated or issued caution / warning letter, then she/ he may be given the award without waiting for the earliest due date as was conveyed earlier.

e) If on conclusion of the inquiry proceedings the employee is awarded a punishment, the award shall be given to him on the normal date of giving the award in the next calendar year alongwtih other eligible employees. If a punishment is awarded to an employee in the calendar year in which he is due to superannuate, the award shall be given to him any time in the next calendar year.

f) However, if a punishment was imposed any time in the past, prior to the year in which the award is to be presented, the same will be ignored while computing the eligibility period of service.

2.5 Deputationists from Government agencies and other organisations who have worked with the Corporation and subsequently absorbed in the service of the Corporation in continuation of the deputation tenure will be eligible for the Long Service Award by computing the deputation service for the purpose of determining the eligibility period for the award.

2.6 The past service in earlier Division put in by an employee before joining on appointment afresh in other Division (i.e. cases of inter-Divisional transfer considered on request of the employee on the basis of fresh appointment) will be taken into account for computing the service period for admissibility of Long Service Award.

2.7 The programme for distribution would be as under:

Long Service Award Distribution on

15 Years Independence Day

25 Years Republic Day

30 & 35 Years Indianoil Day

3. MERITORIOUS AWARD FOR CHILDREN OF EMPLOYEES:

3.1 The scheme shall be applicable to regular employees without any pay limit including Central / State Govt. servants on deputation to the Corporation.

3.2 The Scheme shall not be applicable to persons employed on contract basis or persons paid from contingencies.

3.3 In case of an employee ceasing to be in service due to resignation / retirement / discharge / dismissal / removal / death, the criterion for determining whether a child is eligible to receive the award will be the date of announcement of the result (with reference to the date of separation of the employee).

3.4 The children for the purpose of the scheme means employees’ children including step or adopted child wholly dependent on the employee and aged less than 30 years.

3.5 The award will be admissible for a maximum of two dependent children of an employee in one academic year. Children receiving scholarship / award from any other source will also be eligible. The simplified scheme and revised amount of cash award ranging from Rs.1000 to Rs.6000, effective from the year 2007 onwards, for various qualifications and specified percentage is given in Annexure-F.

3.6 The qualifying marks for children of our employees belonging to SC/ST and children who are physically handicapped will be 5% less than the aggregate percentage requirement specified.

3.7 The qualifying marks for spastic / mentally retarded children will be 15% less than the aggregate percentage requirement specified, provided their disability is certified by a neuro surgeon of a nominated / Govt. hospital.

3.8 Applications for the award must be submitted within 3 months of the declaration of result.

3.9 Special Merit Award will be admissible to wards of employees who secure a rank in Board / Universities and proof indicating the rank should be forwarded alongwith claim.

3.10 As per existing provisions, the dependency criterion of the child is reckoned as on the date of declaration of result. Effective from 29/11/2006, the criterion for dependency has been reviewed and it has been decided that dependency of children for grant of special award shall be reckoned as on the last date of examination, instead of date of declaration of results.

3.11 If the child has acquired dual degree (eg. Bachelor of Science and Bachelor of Business Management) simultaneously, Meritorious Award may be granted for each of the qualification acquired by the child subject to fulfillment of eligibility conditions of each course. In other words, each qualification that has been acquired will be considered independent of the other qualification(s) acquired, if any.

3.12 If the child acquires two qualifications in the same discipline, there is no bar to the grant of award if more than one qualification is acquired from the same group subject to fulfillment of eligibility conditions of each course.

4. HOLIDAY HOMES:

4.1 Corporation has established Holiday Homes at various places in the country, where our employees, alongwith their family members are entitled to go and stay upto a maximum of 10 days, subject to availability of accommodation at the discretion of the competent authority, on payment of a nominal amount of Rs. 2 per day in the case of workmen and Rs. 5 per day in the case of officers.

4.2 The Holiday Homes are situated at the following locations:

For Officers For WorkmenOoty OotyGoa Mahabaleswar

Mahabaleswar DarjeelingPuri Goa

Darjeeling MussoorieShimla Kodaikanal NainitalManali

5. REIMBURSEMENT OF EXCURSION TRIP:

A lumpsum amount will be given as reimbursement towards lodging and traveling expenses to go on an Excursion Trip. The amount for the year 2009-10 is Rs.890/-, which will be revised from year to year based on average AICPI movement of June-May. No carry forward of the unutilized amount is allowed to the next financial year.

6. CANTEEN FACILITY:

The Corporation has provided canteen wherever possible. Subsidy is given in the form of space, furniture, fixtures, fuel, electricity, water, utensils etc.

7. FAMILY WELFARE:

7.1 Employees who adopt family welfare measures by way of tubectomy, vasectomy, etc. are entitled to special leave facilities. In addition, a personal pay equal to the amount of next increment due, or the applicable increment last drawn for those drawing the maximum, at the time of

family planning operation is granted as an incentive to the concerned employee from the first of the month following the operation. In case an employee is on the maximum of pay scale, the incentive amount is protected to the last applicable increment drawn on the basic pay even if the actual amount of increment drawn by him is less. If the incentive amount payable to the employee who has already reached the maximum of pay scale due to sum of BP and Special Pay, the incentive amount payable will be equivalent to the annual increment that he would have last drawn on the BP component only, even if the actual amount of annual increment drawn by him was less. In case where stagnation increment(s) is being drawn, the incentive amount payable would be the annual increment that he would have drawn on the BP component only, prior to start of stagnation increment, even if the actual amount of annual increment drawn by him at that time was less. (Cir 2006/HR/29). This increment will not attract any consequential benefits.

7.2 Special Casual leave upto a maximum of 6 working days may be granted to such employees who undergo sterilization operation under the Family Planning Scheme. The above Special Casual Leave may be sanctioned by the GM (Regions) or Heads of Department of the employee concerned producing a medical certificate from a Registered Medical Practitioner in support of his/her request.

7.3 A day’s Special Casual Leave may be granted to such of the female employees who may go for IUCD insertion under the Family Planning Scheme, on the day of insertion of IUCD, subject to the production of a medical certificate from the Family Planning Centre that the employee concerned has undergone IUCD insertion. The above Special Casual Leave may be sanctioned by Head of Departments (HO/Region) as the case may be.

7.4 Special Casual Leave for a period not exceeding 14 days may be granted to female employees who may undergo non-puerperal or puerperal sterilisation under the Family Planning Scheme, subject to the production of medical certificate to the effect that the employee concerned has undergone such an operation.

7.5 When Special Casual Leave is granted, Sundays and closed holidays intervening in the period of Special Casual Leave are not to be ignored for calculating Special Casual Leave. Prefixing of regular leave/Special Casual Leave is also not admissible.

7.6 Special Casual Leave upto a maximum of 7 days may be sanctioned to the male employees whose wife undergoes non-puerperal or puerperal tubectomy operation under the Family Planning Programme. A supporting recommendation by medical officer in the medical certificate regarding the need for male employee’s presence for looking after the wife during the resultant convalescence is not required.

Note : This Special Casual Leave can be prefixed and suffixed to holidays and Sundays but intervening holidays and Sundays will be counted for the purpose of calculating such leave.

8. ISSUANCE OF BRIEF CASE:

8.1 All officers are eligible and workmen in exceptional cases on need-based basis.

8.2 Reimbursement of actual amount on purchase of brief case, subject to the following monetary ceilings, is allowed on self certification basis:

Category Cost Limit(Rs.)

Periodicity

Grade G & Above 1650 3 YearsGrade C to F 1250 3 YearsGrade A & B 850 3 YearsStaff 525 3 Years

8.3 Beginning 1.7.2004 there is only one common date for reimbursement of expenses on purchase of briefcase in a block of 3 years i.e. 1.7.2004, 1.7.2007, 1.7.2010 and so on. This would apply to all the officers.

8.4 Officers appointed to Grade `A’ will be eligible to this facility during probation after final posting.

8.5 As a principle, officers who join in Gd.A anytime between a block of 3 years shall initially receive full amount immediately on joining. On the next due date falling after their joining, they will be entitled to receive an amount which will be proportionate to the balance period of the previous block. For eg., if a Gd.`A’ Officer purchases a briefcase first time on 1.1.05, he will be receiving its full reimbursement upto Rs.850/-. However, on the next due date of 1.7.07, his claim will be proportionate to the balance period of previous block ie. 1.1.05 – 30.6.07.

9. ISSUANCE OF ELECTRONIC ORGANISER/DIGITAL DIARY:

9.1 Officers in Grade A to G are provided with an Electronic Organiser within a maximum cost ceiling of Rs.2500/- on self-certification basis. The Electronic Organiser can be replaced after 4 years.

9.2 Newly recruited officers can claim reimbursement towards the cost of Electronic Organizer on their joining at the final place of posting (on completion of induction training). This would also be applicable to employees who are promoted from non-officer’s category to officer’s category.

9.3 Officers in Grade H & I are entitled to a Digital Diary within the cost of Rs.5000 once in 3 years on self-certification basis. This is in lieu of Electronic Organiser and is admissible immediately on joining Gr. H

9.4 The same principle and similar reimbursement procedure will be followed in respect of Electronic Organiser / Digital Diary as in the case of Briefcase.

9.5 In the case of Electronic Organiser there would be a common date of reimbursement in a block of four years beginning 1.7.2004. The next common dates would be 1.7.2008, 1.7.2012 and so on.

9.6 In case of Digital Diary the block shall be of three years duration. The common dates would be 1.7.2004, 1.7.2007, 1.7.2010 and so on.

10. FACILITY OF electronic organiser to WORKMEN:

a) Workmen can claim reimbursement of cost of an Electronic Organizer subject to a maximum of Rs.2000/- once in a block of 4 calendar years on self-certification basis. The 4 year block will operate as 2009-2012, 2013-2016 and so on.

b) The existing provision for reimbursement of cost of calculator has been dispensed with effect from 31.12.2008.

11. INCENTIVE/AWARD SCHEMES:

a) For acquiring higher qualifications:

With a view to encourage employees to acquire qualifications as relevant in their field of work/activities and would enable them to improve their job effectiveness through upgrading their educational standards, the Corporation has decided to provide incentive by way of one time lumpsum payment to employees in accordance with the various qualifications and fulfilling other conditions as indicated in the Scheme. The qualifications/ benefits are divided into 3 groups, which are as under :

Group-A Qualification include, Bachelor/ Master Degree in different Engg. disciplines, Master's degree in Management, Ph.D., ICWA, CA, etc. and the cash incentive is Rs. 15000/-.

Group-B Includes Diploma level qualifications in Engineering/various fields of Systems/Marketing/Personnel/Social Work Management, Post Graduation/ Graduation in Science, Arts and Laws, PGDFA from ICFAI, Hyderabad, First Class Boiler

Competency Certificate, etc. and the cash incentive is Rs.10000/-

Group-C List includes qualifications in Trade Certificate by ITIs, NCTVT, SSC, Second Class Boiler Competency Certificate, etc. and the cash incentive is Rs.7000/-

To be eligible for incentive under the Scheme as well as consideration under the Accelerated Career Progression Policy, candidates have to ensure that the qualification acquired by them is recognized by the concerned statutory / other authorities. The framework for recognition of qualification in respect of management / engineering and computer applications, considered for Incentive / Accelerated Career Progression, Policy developed is appended at Annexure ‘I’ (Circular No.2009/HR/27 dt. 22.6.09).

b) Incentive Scheme for Safe Driving – Tank Truck Drivers/Staff Car Drivers/ Despatch Riders:

1) Those of our Tank Truck Drivers, Staff Car Drivers, Despatch Riders, etc. who are involved in driving vehicles are given a Cash Award for safe driving, depending upon the number of hours of accident free driving, as under:

S No.

Number of years of accident free driving

Cash AwardTT Drivers

(Rs)

Staff Car Drivers/

Despatch Riders (Rs)

1 3 continuous years 200 1002 Each year after the

above200 100

3 5 continuous years 400 2004 10 consecutive years 600 3005 15 consecutive years 800 4006 20 consecutive years 1000 5007 25 consecutive years 1250 6258 35 consecutive years &

till retirement1500 750

2) Eligibility conditions for receiving Cash Awards are:

i) Leave (inclusive of EL, SL, CL) not more than 60 days in a year.

ii) All types of RTO offences, endorsed on the licence of the driver will make the incumbent non-eligible for receiving safe driving award for the particular award.

iii) An accident involving total loss of Tank Truck/product or resulting in the death, will debar the concerned employee for 10 years for receiving the safe driving award.

iv) Period of punishment will not be counted for counting the services for award.

v) When disciplinary proceeding is in progress against any employee, he will not be considered for the award.

c) Scheme to provide incentive for acquiring Certificate of Proficiency as Boiler Operation Engineer: (w.e.f. 24/8/06)

It has been decided to delink acquiring certificate of proficiency as Boiler Operation Engineer (BOE) from the existing scheme. The salient features of the Scheme are as under:

Lumpsum monetary incentive of Rs.25,000/-

15 days leave (to be regularized as special leave) for preparation subject to condition of passing the examination.

Treating outstation visit, to appear for examination, as tour subject to the condition of passing the examination.

Reimbursement of actual expenditure towards application money, registration fee and examination fees.

The Corporation will facilitate the candidate by preparing/coaching for examination by existing BOEs at the Training Centres of the respective units without clashing with the normal working.

12. UNIFORM /PROTECTIVE CLOTHING:

12.1 Certain categories of workmen, such as Blue collar workmen - Jr Attendant, Jr Security Guard, Jr Janitor, Operator (Field), Chargeman (T), Driver (Car), Tank Truck Drivers, etc., will be provided protective clothing / items (both for Summer & Winter locations), who are appointed against regular posts after completion of not less than three months service. All clerical staff at AFSs are also eligible for protective clothing.

12.2 Officers working in M & I Dept. are also provided with protective clothing like Boiler Suit, Safety Shoes & Monsoon equipments.

12.3 Officers attached to Depots, Terminals, LPG Plants, etc. & working in the operation areas are provided with safety shoes every year.

12.4 Workmen posted at AFSs will be issued 4 sets of Summer Uniforms per year as against the 2 sets of Summer Uniforms being issued to all Workmen eligible for protective clothing at present (w.e.f 1999).

13. DEPOSIT FREE LPG CONNECTION:

a) An employee joining the Corporation is eligible for LPG connection without Security Deposit for the equipments including for additional cylinder. This facility is extended to Probationers also.

b) The employee seeking a gas connection with or without additional cylinder should give an application to the respective Employee Relations Dept/Unit Head for issuing necessary authorization leter to the Distribution through the respective LPG Dept.

c) In the event of cessation from the service for any reason whatsoever except by way of superannuation/permanent disablement/death, the security deposit may be paid/refunded by the employee concerned.

14. TOLL TAX:

Employees commuting by own vehicle between their residence and place of work at certain locations in the country may be required to pay a Toll Tax. For example, employees using DND Flyover between Delhi & Noida are paying a toll tax for every entry and exit. Similar expenses may also be incurred on performing journey on official business.

Corporation will reimburse the Toll Tax paid by an employee as per the following provisions:

a) The reimbursement will be limited to the Toll Tax amount paid by the employee for using a stretch of Road/Flyover/Bridge which he has to cross for to and fro travel between residence and place of duty by a vehicle for which he is claiming reimbursement of conveyance expenses or drawing a conveyance allowance. The charges paid while traveling in connection with official business shall also be admissible for reimbursement.

b) The reimbursement shall be admissible for an amount charged on daily basis or on lumpsum basis for a specified number of entries/exits or for a prescribed period.

c) Employees would submit their claims for reimbursement once a month in the prescribed proforma duly supported by original receipt(s) of payment.

d) The above facility will become effective from 1/6/2007.

15. TRAINING PERIOD FOR ADMISSIBILITY OF CERTAIN BENEFITS:

a) The training period put in by Graduate Engineer/Officer/Management Traininees before their placement in Grade-A shall be considered towards eligibility for Long Service Award, payment of Gratuity and Ex-Gratia under VRS. This would be with immediate effect. (Ref.DP/3/7(D)/60 dtd 18/7/07 from CO)

b) The period of apprenticeship training would not be included for this purpose since the concerned indIviduals have been appointed in the Corporation only after completion of the apprenticeship training.

16. COMPENSATION PAYABLE TO EMPLOYEES FOR SHIFTING OFFICE PREMISES

The lumpsum amount payable as compensation for the inconvenience caused /

likely to be caused on account of shifting office premises from one location to

another location would be Rs.5500/- for shifting office premises such as

Corporate Office, Head Office, Regional Office, Divisional Office, Area Office, etc.

Similarly, the lumpsum amount payable for shifting Terminal, Installation, Plant,

Depot, AFS, etc. would be Rs.5000/-. These rates are effective January 2008.