CSR OF ONGC

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January 19, 2010 Hemophilia Federation (India) and ONGC set to benefit 1000 Children with Hemophilia Monday, January 19, 2010: Hemophilia Federation (India) (HFI), and Oil and Natural Gas Corporation (ONGC) have come together with a vision to transform lives of Children with Hemophilia (CwH) through education, with the formal launch of Project HEAT. The ONGC-funded and HFI-implemented Hemophiliacs Education and Transformation (HEAT) project will benefit 1000 CwH in its first year of operations. On January 18, Shri A B Chakraborty, Chief CSR, ONGC has signed the formal Memorandum of Understanding with Rtd Wg Cdr SS Roychoudhury, Chief Executive Officer, Hemophilia Federation(Ind ia). Eminent film personality Shri Shatrughan Sinha (Member of Parliament and Former Union Minister of Health and Family Welfare) inaugurated the function. The event was graced by Shri Sontosh Mohan Dev (Former Union Minister of Heavy Industries and Public Enterprises) as the Chief Guest. (From Left to Right) Rtd Wg Cdr SS Roychoudhury, Shri Shatrughan Sinha, Dr Suresh Hanagavadi, Shri Sontosh Mohan Dev, Shri A B Chakraborty and Dr Renu Saxena Under HEAT, the NGO would identify 1000 CwH from across the country that are schooling, between 5 and 18 years of age, and living below the poverty line. Further, HFI would also ensure regular project reporting after the project is successfully implemented. ONGC would support the project financially for one year, and plans to extend it further depending on the progress of Educational and Transformational impact. “ONGC support is a milestone in the history of CwH of the country. With this, they will be able to dream, and see a silver lining in their hitherto-dark horizons. HFI is determined to execute the project successfully and educate even more children in the following years”, said a hopeful Dr Suresh Hanagavadi, President, HFI, while briefing

Transcript of CSR OF ONGC

January 19, 2010 Hemophilia Federation (India) and ONGC set to benefit 1000 Children with Hemophilia Monday, January 19, 2010: Hemophilia Federation (India) (HFI), and Oil and Natural Gas Corporation (ONGC) have come together with a vision to transform lives of Children with Hemophilia (CwH) through education, with the formal launch of Project HEAT. The ONGC-funded and HFI-implemented Hemophiliacs Education and Transformation (HEAT) project will benefit 1000 CwH in its first year of operations. On January 18, Shri A B Chakraborty, Chief CSR, ONGC has signed the formal Memorandum of Understanding with Rtd Wg Cdr SS Roychoudhury, Chief Executive Officer, Hemophilia Federation(Ind

ia). Eminent film personality Shri Shatrughan Sinha (Member of Parliament and Former Union Minister of Health and Family Welfare) inaugurated the function. The event was graced by Shri Sontosh Mohan Dev (Former Union Minister of Heavy Industries and Public Enterprises) as the Chief Guest.

(From Left to Right) Rtd Wg Cdr SS Roychoudhury, Shri Shatrughan Sinha, Dr Suresh Hanagavadi, Shri Sontosh Mohan Dev, Shri A B Chakraborty and Dr Renu Saxena Under HEAT, the NGO would identify 1000 CwH from across the country that are schooling, between 5 and 18 years of age, and living below the poverty line. Further, HFI would also ensure regular project reporting after the project is successfully implemented. ONGC would support the project financially for one year, and plans to extend it further depending on the progress of Educational and Transformational impact. ONGC support is a milestone in the history of CwH of the country. With this, they will be able to dream, and see a silver lining in their hitherto-dark horizons. HFI is determined to execute the project successfully and educate even more children in the following years , said a hopeful Dr Suresh Hanagavadi, President, HFI, while briefing about HEAT, one of HFI s first of its kind projects. Earlier too, ONGC has come forward to support HFI in more ways than one. Advertising in HFI publications, and support for organizing Usha Utthup s nite in Mumbai are some of them. Dr Renu Saxena, Professor & Head of Deptt of Hematology, AIIMS, New Delhi conducted an interactive session with the audience.

Project HEAT is certainly going to bring some warmth and hope in the lives of Children with Hemophilia.

Issued By Oil and Natural Gas Corporation Ltd. Corporate Communications, New Delhi

ONGC clinches Gold for its CSR effortsOctober 27, 2010 9:40:27 PM

Thirteen nominations, Eight jury members a veritable list of whos who of Indias corporate world. Intense debate for more than two hours, one decision. ONGC was declared the unanimous choice for Gold for its CSR initiatives in the India Pride Awards instituted by the Dainik Bhaskar Group. CMD RS Sharma, received the award on behalf of ONGC, presented by Pranab Mukherjee, Minister of Finance in New Delhi. It was a proud moment for ONGC Officers Mahila Samitis Chief Patron Rashmi Sharma and Patron Divya Pande, who shared the stage along with the CMD. This recognition is for the untiring efforts of ONGC Officers Mahila Samiti and their commendable campaign Ashadeep-Shiksha ki Jyot that will reach quality education to 16,000 girl children of the underprivileged strata of society, said Sharma. AshadeepShiksha ki Jyot for girl child education, was kick-started at Ankleshwar on September 9, 2009, followed by other work centres. Central Executive Committee, OOMS has been constantly guiding every unit in all the aspects of CSR activities, starting from identification of the right beneficiaries, preparation of project reports, execution and constant monitoring from time to time. The onerous task of handling CSR by the Mahila Samiti for the first time, without any previous experience or knowledge, assumed greater importance in meeting the objective of ensuring timely support to all the girl children at remote localities. AK Hazarika, Director(Onshore) and DK Pande, Director (Exploration) were present to congratulate Mrs Sharma and Mrs Pande whose seminal project has changed the lives of thousands of girl children. It is second time in a row since the inception of Dainik Bhaskar India Pride awards that ONGC has been rewarded. Last year, ONGC bagged the award in Oil & Gas category. These awards were instituted with the intention of rewarding Central PSUs and State PSUs for their contribution in Indias growth and to celebrate the achievements of PSUs in playing a vital role in nation building.

2010 awards received in total 76 entries in diverse categories, where companies like IOC, Bharat petroleum, SBI, Coal India, NTPC and many others sent their nominations. Pranab Mukherjee praised PSUs for their contribution in CSR for bringing key social deliverables to Indian citizens, PSUs are playing a key role in the development through CSR work. The recognition of their CSR work in the growth of society will enhance their commitment. He also mentioned that the PSUs over several years have proved their critics wrong and stood out as performers time and again. During 2009-10, ONGC initiated many landmark CSR projects. ONGC shared with the jury the highlights of various programmes that focused on girl child education, nurturing young minds, women empowerment, enhancing skills and spreading joy; true to the ONGC credo Billion Barrels, Billion Smiles. Chief Patron Mahila Samiti in her message to members of ONGC Mahila Samiti expressed her sincere gratitude to each one for their dedication, compassion and selfless drive which has been exemplary. She said that this achievement would not have been possible without them. In another development, NHDC Limited was conferred with a Silver India Pride Award 2010 for Corporate Social Responsibility. The award was received by SK Garg, CMD, NHPC & NHDC and KM Singh, CED, NHDC at a function in New Delhi.

ONGC hikes CSR spend to Rs 300 cr in 2009-10Sanjay Jog Posted: Saturday, May 09, 2009 at 2313 hrs IST Updated: Saturday, May 09, 2009 at 2313 hrs IST

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Mumbai: Indias exploration and production major ONGC on Friday said that it has increased its allocation for CSR activities to Rs 300 crore, which is 2% of its net profit in the previous fiscal, from Rs 145 crore. ONGCs move comes in the wake of petroleum ministry's directive to hike CSR spending to 2% from 1%. GAIL India, which is involved in gas transportation, has also allocated Rs 25 crore, 2% of its profit in 2008-09. The petroleum ministry has projected that oil PSUs are expected to spend Rs 700 crore in 2009-10 on CSR. ONGC has already taken a decision to earmark Rs 300 crore for CSR activities which will be carried out across the country. The company has also made additions in the projects to be covered by the increased spending, AK Balyan, ONGC director (business development, HR) told FE. ONGC' s CSR projects include promotion of literacy and higher education, grant of scholarship & assistance to deserving young pupils of weaker sections of society, facilities for constructing schools, renovation of school buildings, other infrastructure. Besides, the company also spends on healthcare & family welfare and community development. The emphasis is also given on development of infrastructure facilities--improvement of roads, bridges, street lighting, drainage systems and development of agriculture and cottage industries. ONGC's move is crucial as the petroleum ministry will closely review the CSR activities of oil PSUs. The ministry will carry out quarterly review of CSR projects in a bid to ensure that the funds are used in the actual development of society. Besides, the ministry has also announced that it will prepare annual report on CSR activities by oil PSUs and it will be made open for public.

ONGC awarded Gold at India Pride Award0 Comments| DNA : Daily News & Analysis; Mumbai, Sep 17, 2010 ONGC was declared the unanimous choice for Gold for its CSR initiatives at the India Pride Awards, instituted by the Dainik Bhaskar Group. RS Sharma, CMD, ONGC received the award on behalf of ONGC. The award was presented by Pranab Mukherjee, minister of finance, Government of India in Delhi. It was a proud moment for Rashmi Sharma, chief patron, and Divya Pande, patron, social, ONGC Officers Mahila Samiti who shared the stage along with RS Sharma. "This recognition is for the untiring efforts of ONGC Officers Mahila Samiti and their commendable campaign 'Ashadeep-Shiksha ki Jyot' that will reach quality education to 16,000 girl children of the underprivileged strata of society," said RS Sharma.

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'Ashadeep - Shiksha ki Jyot' for girl child education, was kick-started at Ankleshwar on September 9, 2009, followed by other work centres. Central Executive Committee, OOMS has been constantly guiding every unit in all the aspects of CSR activities, starting from identification of the right beneficiaries, preparation of project reports, execution and constant monitoring from time to time. The onerous task of handling CSR by the Mahila Samiti for the first time, without any previous experience or knowledge, assumed greater importance in meeting the objective of ensuring timely support to all the girl children at remote localities. AK Hazarika, director, onshore and DK Pande, director (exploration) were present to congratulate Rashmi Sharma and Divya Pande whose seminal project has changed the lives of thousands of girl children. It is second time in a row since the inception of Dainik Bhaskar India Pride awards that ONGC has been rewarded. Last year, ONGC bagged the award in Oil & Gas category. These awards were instituted with the intention of rewarding central PSUs and state PSUs for their contribution in India's growth and to celebrate the achievements of PSUs in playing a vital role in nation building. India Pride Awards 2010 received a total of 76 entries in diverse categories, with companies like IOC, Bharat Petroleum, SBI, Coal India, NTPC and many others sent their nominations. Pranab Mukherjee praised PSUs for their contribution in CSR for bringing key social deliverables to Indian citizens, "PSUs are playing a key role in the development through CSR work. The recognition of their CSR work in the growth of society will enhance their commitment." He also mentioned that the PSUs, over several years have proved their critics wrong and stood out as performers time and again. During 2009-10, ONGC initiated many landmark CSR projects. ONGC

shared with the jury the highlights of various programmes that focused on girl child education, nurturing young minds, women empowerment, enhancing skills and spreading joy; true to the ONGC credo-'Billion Barrels, Billion Smiles'. Credit:DNA Money Correspondent

Company: ONGC Videsh Ltd Income 2005-2006 = Rs 1800 Cr (rounded off) Net profit after tax (05-06) = Rs 400 Cr (rounded off) Karmayog CSR Rating-1/5 CSR activities: The development activities of the OVL should be planned on sound ecological principle and must incorporate appropriate environmental safeguards. oEnvironmental impact assessment, with the details required by the "Department of Environment" should be prepared at the earliest stage of project formulation and necessary financial provisions for various environmental program and safeguards be indicated in the project estimates. oEnvironmental norms prescribed by the Central and state government, statutorily empowered to do so, in the matter of air and water quality, noise, land use, afforestation etc. should be strictly observed in the design, construction and operation of all facilities of the corporation. oThe widest possible range of information on practical options available for the design of the project should be gathered and analyzed for final decision making technology that ensures energy economy, environmental safeguards, recycling of resources and utilization of wastes should be adopted for all projects. oReleases of hydrocarbons, chemicals and other materials should be controlled so that it does not disturb the flora and fauna. Releases containing viruses, pathogenic bacteria and parasites, which survive in marine life, should be completely eliminated and precluded from entering marine waters. oProductivity of the environment adjacent to the project areas and resource of the coastal waters should not be adversely affected. No action harmful to the potential for marine resources such as fish, salt, corustacea, etc. should be permitted. Coastal marine areas should not be subjected to unplanned salutation, erosion, changes in flow pattern and coastal contours. oMicrobiological activity of significance to marine and estuarine life and people dependent on the coastal waters should be fully protected. oAesthetic, cultural and social patterns and historical characteristics of the areas covered by or adjacent to the OVL's prefects should not be unduly disturbed by the project activities. Scenic landscapes,

historical heritage and cultural monuments should be preserved and the environment around them should be kept clean and hygienic. oAs far as possible, a minimum area of 500 meters from the high tide mark in respect of coastal projects located near river banks should be kept clear of all structures so that beach activities or river front development are not adversely affected. Effective mechanisms for monitoring the environment and for collection of the required data of various parameters of the environment for the purposes of surveillance should be set up within each project. oWork environment in the operational areas should be conducive to safe and healthy working conditions. Good housekeeping is an integral part of sound environmental management. Promoting a healthy, safe, productive, and aesthetically satisfying environment is the responsibility of OVL. Amount spent on CSR : No information regarding the amount spent on CSR was available on the homepage .

ONGC to launch CSR project next weekOur Bureau Kolkata , April 13 AS part of the President, Dr A.P.J. Abdul Kalam's Vision 2020, ONGC will launch its Corporate Social Responsibility (CSR) project on providing urban amenities in rural areas (PURA) on April 18. The project will start with a seed money of Rs 10 crore. ONGC, which spends 0.75 per cent of its net profit on CSR projects, will spearhead integrated economic development in roughly 50 villages in the oil or gas bearing areas of Tripura, Assam, Andhra Pradesh, Tamil Nadu, Gujarat and Rajasthan. ONGC has already floated a trust to take up PURA activities in collaboration with Nabard, The Energy and Resources Institute (TERI), Wartsila and Thermax India. To be flagged off from Maichara in Tripura on April 18, the project envisages supplying power to the villages covered using natural gas. Thermax India will

help the company in developing the cold chain. The project also includes building village roads, healthcare facilities, vocational training institutes and others. Visualised by the President Dr A.P.J. Abdul Kalam, the PURA project aims at integrated development of six lakh villages in the country by 2020 through 50,000 development centres. Accordingly, the Centre had identified 5,000 villages for such integrated development in the next five years.

ONGC is continuously and consciously involved and focused towards corporate social responsibility in all decisions and activities undertaken in the organization. ONGC is committed to allocate 0.75% of net profit of the year towards socio-economic development programmes."1 - Dr. Madhav Mehra, President, World Council for Corporate Governance, in May 2006. "If trade and commerce - and by extension, business and industry - is not sensitive to its social and environmental contexts, it will not be sustainable. And if it is not sustainable, it will collapse."2 - Kamal Nath, Union Minister (commerce and industry), in May 2005.

Introduction

In May 2006, ONGC Ltd. (ONGC), a major Indian public sector company in the petroleum industry, received the 'Golden Jubilee Award for Corporate Social Responsibility in Emerging Economies - 2006', at the 7th International Conference on Corporate Governance organized by the World Council for Corporate Governance3. Since its inception, ONGC had regularly contributed to various CSR initiatives in the areas of health, education, infrastructure, and culture. In 2003, it decided to allocate 0.75% of its net profit each year for various socio-economic developmental programs undertaken by the company. In 2004, it drafted a Corporate Citizenship Policy - a written guideline which was to provide a direction to the company's CSR initiatives.

With growing globalization, Corporate Social Responsibility (CSR) had been increasing in importance as it helped organizations to improve their relationships with local communities, increase brand value, and build a good corporate image for themselves. Also, the socio-economic developmental activities undertaken by companies increased the purchasing power of the community, leading to an expansion in their market size.

In India, CSR began as a philanthropic activity where organizations contributed to social causes, but it was gaining in importance and becoming an essential activity for business (Refer Exhibit I to know more about CSR and Exhibit II for development of CSR in India). Also it appeared that in the future, CSR in India would become more than a voluntary exercise. In a conference 'Implementing CSR as a Business Strategy - A Roadmap for Effective and Sustainable Penetration' organized by the Confederation of Indian Industry (CII)4 in December 2005, the possibility of a company reporting its CSR activities along with its financial reports was discussed."We should start putting it in the balance sheet,"5 said Kishore A. Chaukar, managing director, Tata Industries Ltd.

Background Note

ONGC's origin can be traced to the mid-1950s. After India achieved independence, the development of the petroleum industry was an important issue for the Government of India (GoI). It was crucial not only for the industrial development of the country but also for strategic reasons. Till 1955, exploration for hydrocarbon resources within the country's boundaries was mainly undertaken by private oil companies like Assam Oil Company6, Burmah Oil Company7 (both of which operated in Assam), and the Indo-Stanvac Petroleum project8 (in West Bengal). In 1955, the GoI decided to undertake exploration and production activities for oil and natural gas resources in different regions of the country.In the same year, an Oil and Natural Gas Directorate was set up as a subordinate office under the then Ministry of Natural Resources and Scientific Research. In August 1956, the Directorate was elevated to the status of a commission and named the Oil and Natural Gas Commission.

In 1959, with the Oil and Natural Gas Commission Act 1959, the Commission became a statutory body. Its main objectives were "to plan, promote, organize, and implement programs for development of petroleum resources and the production and sale of petroleum and petroleum products." In 1991, as part of the liberalization initiatives of the GoI, core sectors like petroleum were deregulated and de-licensed. Consequently, in 1993, the Oil and Natural Gas Commission was converted into a public limited company, ONGC Ltd., under the Company's Act, 1956CSR at ONGCThe mission of ONGC stated that the company would have an "abiding commitment to health, safety, and environment to enrich quality of community life."And this mission was reflected in its CSR activities. CSR at ONGC began as a philanthropic activity where the company contributed to several socio-economic developmental programs like building schools and hospitals, developing agriculture and cottage industry, building infrastructure facilities, etc., around its areas of operation on an ad hoc basis...

Corporate Level Programs

ONGC's CSR programs at the corporate level focused on disaster relief management and water management projects. When disasters struck India, ONGC provided relief and helped state and central governments in rehabilitating those affected. For example, when a heavy cyclone hit the eastern state of Orissa in 1999, the company provided immediate relief like food, drinking water, temporary shelters, medicine, clothing, etc. ONGC doctors provided medical treatment round the clock. The company also contributed Rs. 80 million toward the Prime Minister's relief fund and took steps to rehabilitate the cyclone victims...Work Center Level & Community Development ProgramsONGC was involved in various community development programs like promoting literacy and higher education by providing grants or scholarships to the economically disadvantaged, donating money for the construction and renovation of schools, promoting healthcare by organizing medical camps, eye camps, through mobile dispensaries, etc...

ONGC-PURA

In 2003, Dr. A. P. J Abdul Kalam, President of India, put forth the concept of PURA - 'Providing Urban Amenities in Rural Areas'. This aimed to bridge the urban-rural gap through a balanced socio-economic development program. The main idea was to provide four major connectivities physical (transportation and power), electronic (communication network through telecom, the Internet, and IT services), knowledge (institutions and vocational training centers), and economic empowerment (through overall socio-economic development) - to rural communities...ONGC and the Global Compact ProgramThe concept of 'global compact' was initiated by UN Secretary-General Kofi Annan in July 2000. The idea was to form an international corporate citizenship network for the advancement of universal social and environmental principles (Refer Exhibit IV to learn more about the Global Compact program)...

Environment Protection Programs

ONGC took several measures to reduce pollution and support conservation of resources through the utilization of waste. The company formulated its Environment Policy as early as 1983 and adopted environment protection as one of its objectives in 1988. It even created a separate department called the Department of Environment (DoE) to ensure that environmental safeguards were in place. The environment policy of the company made it mandatory to submit an "environmental impact assessment report"to the DoE at the time of project formulation...SafetyONGC set up the Institute of Petroleum Safety, Health and Environment management (IPSHEM) in 1989 with the objective of improving the safety, health, and environment standards in the Indian petroleum industry. The institute offered training courses in safety and environment management and a special training program for off-shore personnel...

Other CSR InitiativesONGC also participated in promoting sports and games like cricket, football, hockey, athletics, basketball, chess, golf, billiards, and volleyball in India. In 2004, it received the "Best Corporate Initiative in Sports"award from the Federation of Indian Chambers of Commerce and Industry (FICCI)...

CSR: The Way to Go?

The importance of CSR has increased with globalization, as both investors and customers have become highly sensitive to societal and environment issues. According to Dr. Madhav Mehra (Mehra), President of the UK-based World Environment Foundation and the World Council for Corporate Governance, the importance of CSR would further increase as the future market would be driven by a younger population (around 54% of India's population is below 25) for whom social, ethical, and environmental issues were very important and who liked to be "informed"about the organizations they were buying from or investing in...