Indian Oil Corporation Ltd

Indian Oil Corporation Ltd

Sales (2007-2008) = Rs.2, 26,000 crores (rounded off)

Net profit after tax = Rs.7000 crores (rounded off)

CSR Budget: 10 crores

Karmayog 2008 CSR Rating: 2/ 5

CSR activities:

CSR: A Cornerstone of our Enduring Success”

At IndianOil, corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. The Corporation�s objectives in this key performance area are enshrined in its Mission statement: “�to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.”

We at Indian Oil have defined a set of core values for ourselves � Care, Innovation, Passion and Trust � to guide us in all we do. We take pride in being able to claim all our countrymen as our customers. That�s why, we coined the phrase, �Indian Oil � India Inspired”, in our corporate campaigns. Public corporations like Indian Oil are essentially organs of society deploying significant public resources. We, therefore, are aware of the need to work beyond financial considerations and put in that little extra to ensure that we are perceived not just as corporate behemoths that exist for profits, but as wholesome entities created for the good of the society and for improving the quality of life of the communities we serve.

As a constructive partner in the communities in which it operates, Indian Oil has been taking concrete action to realize its social responsibility objectives, thereby building value for its shareholders and customers. The Corporation respects human rights, values its employees, and invests in innovative technologies and solutions for sustainable energy flow and economic growth. In the past four decades, Indian Oil has supported innumerable social and community initiatives in India. Touching the lives of millions of people positively by supporting environmental and health-care projects and social, cultural and educational programmes.

Besides focusing primarily on the welfare of economically and socially deprived sections of society, Indian Oil also aims at developing techno-economically viable and environment-friendly products services for the benefit of millions of its consumers, while at the same time ensuring the highest standards of safety and environment protection in its operations.

Sharing Profits

Every year, Indian Oil sets aside a fixed portion of its profits for spreading smiles in millions of lives across the country through a comprehensive community welfare and development programme. About one-fourth of the community development funds are spent on the welfare of Scheduled Caste and Scheduled Tribe beneficiaries.

IndianOil has a concerted social responsibility programme to partner communities in health, family welfare, education, environment protection, providing potable water, sanitation, and empowerment of women and other marginalised groups. Indian Oil has always been in the forefront in times of national emergencies. Indian Oil People have time and again rallied to help victims of natural calamities, maintaining uninterrupted supply of petroleum products and contributing to relief and rehabilitation measures in cash and kind.

IndianOil�s community-focussed initiatives include allotment of petrol/diesel station dealerships and LPG distributorships to beneficiaries from among Scheduled Castes, Scheduled Tribes, physically handicapped, ex-servicemen, war widows, etc. The Corporation has also unveiled kisan seva kendras as small-format retail outlets to reach quality products and services to people in the rural areas. Indian Oil has also set up the Indian Oil Foundation (IOF) as a non-profit trust to protect, preserve and promote national heritage monuments. The Corporation also supports a variety of endeavours in arts, culture, music and dance, apart from organising programmes on its own under the banners of Indian Oil Art Exhibition, Indian Oil Sangeet Sabha and Indian Oil Kavi Sammelan.

As part of its environment-protection initiatives, Indian Oil has invested close to Rs. 7,000 crore in state-of-the-art technologies at its refineries for production of green fuels meeting global standards. To further reduce dependence on precious petroleum products and secure the nation�s energy security, the Corporation is now in the process of commercialising various options in alternative fuels such as ethanol-blended petrol, biodiesel, and Hydrogen and Hydrogen-CNG mixture.

With safety, health and environment protection high on its corporate agenda, Indian Oil is committed to conducting business with a strong environment conscience, so as to ensure sustainable development, safe work places and enrichment of the quality of life of its employees, customers and the community. Indian Oil is also committed to the Global Compact Programme of the United Nations and endeavors to abide by the 10 principles of the programme, some of which are already part of the Corporation�s Vision and Mission statements. It is the firm resolve of Indian Oil people to move beyond business, touch every heart and fuel a billion dreams.

Community Development

Indian Oil units across the country identify appropriate community development programmes or deserving causes in their vicinity for fund allocation from the Community Development budget. The Corporation directly executes projects wherever necessary. Fund utilisation is closely monitored to ensure that the benefits of the programmes flow to the identified target groups.

Clean drinking water is a major requirement of a significant number of remote areas in India. Scanty rainfall and lowering of water table have aggravated the situation in these areas of the country, which remain dry for most part of the year. In the regions where we operate, we have been pioneering initiatives in an effort to provide succour to parched throats.

By expanding the geographical outreach, we are taking our projects to remote corners of the country. For instance, physical assets have been created in villages of Koyali, Karachiya in the State of Gujarat, New Baholi in the State of Haryana, etc.

In an effort to promote and improve the health of communities in the neighbourhood of our areas of operation, we run child and maternity health centres. These activities are conducted with the active partnership of local communities. Full-fledged hospitals in IndianOil�s refinery townships go a long way in promoting the health of neighbourhood communities. Child and maternity health camps are conducted at major units with the active partnership of the local communities.

Physical assets like equipment and ambulances are provided to hospitals and medical research centres for the benefit of the common man. For instance, Indian Oil has donated Rs. 50 lakh in 2003 for setting up a state-of-the-art Refractive Surgery Centre at Sankara Nethralaya, a reputed eye hospital & research centre at Chennai. Prior to this, in 1997, Indian Oil had donated Rs. 24 lakh to Sankara Nethralaya to install the fourth generation Excimer Laser for corneal refractive surgery, to ensure greater precision and safety in the procedure.

In the area of education, IndianOil contributes to construction of school buildings and libraries, and provision of furniture, books, uniforms, lab equipment, etc. Deserving students from poor and needy families are extended a helping hand through the IndianOil Scholarship Scheme. The Corporation also offers sports scholarships for upcoming junior players, besides providing employment to national and international level sportspersons.

IndianOil Foundation: Presenting the Past to the Future

India is a land of great diversity � in culture, people and languages. The history of India, which can be traced back to the ancient times, is rich and stimulating. A large number of heritage monuments from past centuries still stand tall, as testimony to the glorious past.

With the objective of protecting, preserving and promoting this glorious past, IndianOil has created a non-profit trust, the Indian Oil Foundation, in collaboration in the Archaeological Survey of India (ASI) and the National Culture Fund of the Ministry of Culture, Government of India. The genesis of the creation of Indian Oil Foundation lies in Indian Oil�s Mission statement, to� �preserve ecological balance and heritage�� Exclusively funded by Indian Oil with an initial corpus of Rs. 25 crore and an annual contribution of Rs. 10 crore, IOF will adopt at least one heritage site in every State and Union Territory.

Monuments identified in the first phase include Qutab Minar in Delhi, Konark Sun Temple in Orissa, Khajuraho temples of Madhya Pradesh, Kanheri Caves in Maharashtra, Hampi complex in Karnataka, and Warangal fort in Andhra Pradesh. IndianOil, through NCF and ASI, will fund archaeological works while IOF will develop world-class facilities and conveniences for the visitors. In addition to refuelling facilities for travellers, community development in the neighbourhood is to be undertaken by IndianOil. IOF recently unveiled the �Swantantrya Jyot� at the cellular Jail National Memorial, Port Blair as a humble tribute to our great freedom fighters.

Meeting Social Obligations

As a part of its social obligations, Indian Oil has always supported the economically and socially challenged sections of the society. Making them a part of its nationwide reseller network and providing them with a source of livelihood. Almost all socially challenged sections are covered under the umbrella of the social objectives schemes. The following table explains how:

Percentage of RO dealerships/LPG distributorships reserved under various social objectives categories:

Categories	% reserved
Scheduled Caste/Scheduled Tribes	25
Defence Personnel	8
Freedom Fighters	2
Outstanding Sports Persons	2
Paramilitary/Police/Government Personnel	8
Physically Handicapped	5
Open Category	50

As a special initiative for empowerment of women, 33% of the dealerships/distributorships in each category are reserved for women. Widows and unmarried women above 40 years of age without earning parents are given preference.

Financial assistance is provided to SC/ST categories of dealers and distributors under the corpus fund scheme. Under this scheme, IndianOil makes the dealership/distributorships ready for operation at its own cost. Thereafter, adequate working capital loan for a full operation cycle of operation is provided recoverable in 100 instalments. This facility is also extended selectively to widows and unmarried women above 40 years of age without earning parents. For those Northeast States that have a pre-dominant population of Scheduled Tribes, the per centage reserved for ST category is as follows:

Budget Allocation of CSR

National Calamities: 35%

Donations: 5%

Community Development: 30%

Indian Oil Scholarships: 20%

Other activities: 10%

Source: Annual Report �07-08 pg 40

www.iocl.com/Aboutus/corporatesocialresponsibility.aspx

Contact Information:

Indian Oil Corporation Ltd

Indian Oil Bhavan

G-9, Ali Yavar Jung Marg

Bandra (E), Mumbai � 400 051

Maharashtra

Phone :

Fax :

E-mail : sethis@iocl.co.in

Website : www.iocl.com

Industry Sector: Refineries

Products / Services: Refineries

Other locations of factories / offices: Corporate office in New Delhi and Refineries in Bihar, Gujarat, Guwahati, Haldia, Mathura, Panipat.

Previous year�s CSR activities & rating: