Organisational Study

A Report on Organisational study at Indian Oil Corporation
Limited (AOD), Digboi
Submitted in partial fulfilment of the requirement For 3rd
semester of Master of Business Administration Of Krishna
Kanta Handiqui State Open University
Submitted by
Abhijit Debnath
Registration No.: 15025401
Under the guidance Of :
Mr. Naveen Mugadur, DM(ER), IOCL (AOD)
Mrs. Indrani Banerjee, Faculty of Humanities, LSS (DIGBOI)

A Report on Organisational study at Indian Oil Corporation (AOD), Digboi Registration No.: 15025401
DECLARATION
I, Abhijit Debnath, Registration No.: 15025401, hereby declare that the Report titled
“An Organisational Study at Indian Oil Corporation Limited (AOD), Digboi”
submitted in the partial fulfilment of the requirement for the 3 rd Semester of Master
of Business Administration offered by Krishna Kanta Handique State Open
University during the academic year 2016-17 is an original work carried out by me
under the guidance of Mr. Naveen Mugadur, DM (ER), IOCL (AOD) and Mrs.
Indrani Banerjee of The Little Stars Senior Secondary School, Digboi and this
work is not submitted for award of any Degree, Diploma, Fellowship or other similar
title or awards.
Date: Signature of the Student
Place: DIGBOI Name: Abhijit Debnath
Reg no.: 15025401

CERTIFICATE FROM THE GUIDE
Certified that the Report titled “An Organisational Study at Indian Oil Corporation
Limited (AOD), Digboi” submitted in the partial fulfilment of the requirement for the
3rd Semester of Master of Business Administration offered by Krishna Kanta
Handique State Open University during the academic year 2016-17 is an original
work carried out by the student under my guidance and this work is not submitted for
award of any Degree, Diploma, Fellowship or other similar title or awards.
Date: Signature of the Guide
Name of the Guide: Indrani Banerjee
Designation: Subject Teacher, Faculty of Humanities
Institution Name and Address:
The Little Stars Senior Secondary School,
Borbil, Digboi, Assam

CERTIFICATE FROM THE ORGANISATION
I, Naveen Mugadur, DM(HR), IOCL (AOD), hereby certify that the Report titled “An
Organisational Study at Indian Oil Corporation Limited (AOD), Digboi”
submitted in the partial fulfilment of the requirement for the 3rd Semester of Master
of Business Administration offered by Krishna Kanta Handique State Open
University for the academic year 2016-17 has been carried out by him in
IOCL(AOD) for a duration of One month from February 2017 – March 20017.
The information submitted is true, original and authentic to the best of my
knowledge.
Date: Signature
Name: Naveen Mugadur
Designation: Deputy Manager(ER)

ACKNOWLEDGEMENT
On completion of my Organizational Study Report, I feel deeply indebted to
many. Let me avail this opportunity to express my deep sense of gratitude to
Mrs. Indrani Banerjee, Dept. of Economics, The little stars senior secondary
School, for her kind guidance and encouragement given to me during the
preparation of this report.
Thankfully I express my gratitude to Mr. Naveen Mugadur, DM(ER), IOCL
(AOD), for his help in collecting the data and valuable suggestions required for
the study.
My special thanks to Mr. Pranshul Garg, ISO (IS), IOCL (AOD), for his valuable
inputs. I am thankful to all the officials of IOCL (AOD), Digboi for providing a
good environment that helped me to complete this study within the specified
time.
I take this opportunity to extend my gratitude to my parents and other family
members for their encouragement on completing this work. My sincere thanks
to the God Almighty for having showered all the blessing to complete this
work.
Abhijit Debnath,
CONTENTS
1. INDUSTRY PROFILE................................................................................................................. 1
1.1. INTRODUCTION ...................................................................................................................... 1

1.2. MARKET SIZE .......................................................................................................................... 1
1.3. INVESTMENT ........................................................................................................................... 2
1.4. GOVERNMENT INITIATIVES ................................................................................................. 5
1.5. ROAD AHEAD ........................................................................................................................... 7
2. COMPANY PROFILE ................................................................................................................. 8
2.1. OBJECTIVES OF IOCL............................................................................................................ 9

2.2 OBLIGATIONS ......................................................................................................................... 10
2.3. IOCL – DIGBOI REFINERY (ASSAM OIL DIVISION) ........................................................ 11
2.3.1. OTHER REFINERIES OF IOCL ................................................................................... 11
2.3.2. A BRIEF HISTORY OF DIGBOI REFINERY .............................................................. 13
2.3.3. DIGBOI REFINERY AT PRESENT .............................................................................. 14
2.3.4. DEPARTMENTS OF IOCL (AOD), DIGBOI ............................................................... 16
3. ORGANISATIIONAL HIERARCHY ........................................................................................ 18
3.1. ORGANISATIONAL CHART AND STRUCTURE .............................................................. 18

3.1.1. REFINERIES DIVISION................................................................................................. 19
3.2. VISION WITH VALUES .......................................................................................................... 20
3.2.1. THE SIGNIFICANCE OF IOCL LOGO: ....................................................................... 21
3.3. PRODUCTS AND SERVICES OF IOCL .............................................................................. 22
4. STUDY OF FUNCTIONAL DEPARTMENTS ......................................................................... 27
4.1. PRODUCTION DEPARTMENT ............................................................................................ 27

4.1.1. INTRODUCTION ............................................................................................................ 27
4.1.2. OBJECTIVES AND FUNCTIONS OF THE PRODUCTION DEPARTMENT......... 28
.4.2. FINANCE DEPARTMENT .................................................................................................... 34
4.2.1. INTRODUCTION ............................................................................................................ 34
4.2.2. OBJECTIVES AND FUNCTIONS OF FINANCE DEPARTMENT ........................... 35
4.3. MARKETING DEPARTMENT ............................................................................................... 40
4.3.1. INTRODUCTION ............................................................................................................ 40
4.3.2. OBJECTIVES AND FUNCTION OF THE MARKETING DEPARTMENT .............. 41
4.4. HUMAN RESOURCE DEPARTMENT ................................................................................. 48
4.4.1. INTRODUCTION ............................................................................................................ 48
4.4.2. OBJECTIVES AND FUNCTIONS OF HR DEPARTMENT....................................... 48
4.5. IT DEPARTMENT ................................................................................................................... 52
4.5.1 INTRODUCTION .............................................................................................................. 52
4.5.2. FUNCTIONS OF THE IT DEPARTMENT ................................................................... 52
5. SWOT ANALYSIS .................................................................................................................... 54
SWOT ANALYSIS OF THE ORGANIZATION............................................................ 54

6. SUMMARY OF FINDINGS ...................................................................................................... 55
7. SUGGESTIONS AND RECOMMENDATIONS ...................................................................... 57
8. CONCLUSION .......................................................................................................................... 58
BIBLIOGRAPHY(IN APA STYLE) .............................................................................................. 59

1. INDUSTRY PROFILE
1.1. INTRODUCTION
The oil and gas sector is among the six core industries in India and plays a major role
in influencing decision making for all the other important sections of the economy.
In 1997–98, the New Exploration Licensing Policy (NELP) was envisaged to fill the
ever-increasing gap between India’s gas demand and supply. India’s economic
growth is closely related to energy demand; therefore the need for oil and gas is
projected to grow more, thereby making the sector quite conducive for investment.
The Government of India has adopted several policies to fulfil the increasing
demand. The government has allowed 100 per cent Foreign Direct Investment (FDI)
in many segments of the sector, including natural gas, petroleum products, and
refineries, among others. Today, it attracts both domestic and foreign investment, as
attested by the presence of Reliance Industries Ltd (RIL) and Cairn India.
1.2. MARKET SIZE
India is expected to be one of the largest contributors to non-OECD petroleum
consumption growth globally. Domestic refiners’ import of crude oil increased 9.1 per
cent year-on-year to around 18.81 million metric tons during August 2016.11
Total fuel consumption is expected to grow around 5-6 per cent in FY 2016-17 and
thereafter, while consumption of gasoline is expected to grow around 9-10 per cent
1
According to data from the Petroleum Planning & Analysis Cell, Ministry of Petroleum and
Natural Gas
1
over the medium term, supported by robust passenger vehicle sales amid low crude
oil prices.22
India is the fourth-largest Liquefied Natural Gas (LNG) importer after Japan, South
Korea and China, and accounts for 5.8 per cent of the total global trade.33Domestic
LNG demand is expected to grow at a CAGR of 16.89 per cent to 306.54 MMSCMD
by 2021 from 64 MMSCMD in 2015.
The country's gas production is expected to touch 90 Billion Cubic Metres (BCM) in
2040 from 35 BCM in 2013. Gas pipeline infrastructure in the country stood at 15,808
km in December 2015.
State-owned Oil and Natural Gas Corporation (ONGC) dominates the upstream
segment (exploration and production), producing around 22.37 MT of crude oil, which
is approximately 60.5 per cent of the country’s 36.95 MT oil output, as of March
2016.
1.3. INVESTMENT
According to data released by the Department of Industrial Policy and Promotion
(DIPP), the petroleum and natural gas sector attracted FDI worth US$ 6.67 billion
between April 2000 and March 2016.
Following are some of the major investments and developments in the oil and gas
sector:
Investments in India's oil and gas sector will likely touch Rs 2.5-3 trillion (US$ 37.28-
44.73 billion) over the next few years, which will help raise the share of gas in the
2
According to a report by Fitch
3
IGU World Gas LNG Report 2016 Edition
2
country’s primary energy mix to 15 per cent by 2030, as per British multinational oil
and gas company BP Group.
The Oil and Natural Gas Corporation (ONGC) has launched a start-up fund of Rs 100
crore (US$ 14.91 million) on its Diamond Jubilee year to encourage and promote
new ideas related to oil and gas sector, thereby giving a fillip to Government's Startup
India initiative.
Yara International ASA, a Norwegian chemical company, plans to acquire Tata
Chemicals Limited’s Babrala urea plant and distribution business in Uttar Pradesh for
about Rs 2,670 crore (US$ 398.13 million), on a debt and cash free basis.
Heraeus, one of the world’s largest recyclers of reforming catalyst, has opened a new
facility at Udaipur which will allow companies to benefit from less transport costs,
easier file processing, faster recycling times, better transparency and overall
improved costing for catalyst recycling in the country.
Honeywell International Inc, the US-based technology and manufacturing solutions
provider, has unveiled a new refining technology in Gurgaon, which will be dedicated
to helping Indian refiners get more clean transportation fuel, reduce imports of crude
oil and produce environmentally preferable diesel fuels.
Royal Dutch Shell Plc, which has already invested US$ 1 billion in India, has planned
further investments in upstream and downstream segments of oil and gas sector, and
is also doubling its employee base at its Shell Technology Centre Bangalore (STCB).
India and Iran have signed agreements related to crude oil imports, petrochemical
complexes and gas field development, in addition to India committing to invest US$
20 billion in the port of Chabahar in Southeastern Iran.
3
Kolkata-based Dhunseri Petrochem Limited and Thailand's Indorama Ventures
Public Company Limited have agreed to enter into an equal joint venture to
manufacture and sell polyethylene terephthalate (PET) resins for Indian market.
State-run Indian Oil Corporation Ltd (IOCL) plans to invest Rs 34,000 crore (US$
5.07 billion) on a petrochemical complex at Paradeep in the state of Odisha, which is
expected to be commissioned by 2021.
Petrogas Pvt Ltd, a joint venture of Isomeric Holdings bhd of Malaysia and LEPL
Venture Pvt Ltd of India, will collaborate with Krishnapatnam Port Co Ltd and the
Government of Andhra Pradesh, to set up a Liquefied Natural Gas (LNG)
regassification and floating storage terminal at Krishnapatnam Port in Nellore district
with an investment of around Rs 3,000 crore (US$ 447.34 million).
India's consumption of petroleum products which include domestic and industrial
fuels like petrol, diesel, cooking gas, kerosene, naphtha, etc., rose 17.7 per cent to
15.2 million tonne (MT) in October 2015 from 12.9 MT in October 2014, as per
Petroleum Planning and Analysis Cell (PPAC) data. The increase in consumption
can be mainly attributed to India's high economic growth, low fuel prices, festival
season demand.
Essar Projects, the engineering, procurement & construction (EPC) arm of Essar
Group, in a joint venture with Italy’s Saipem has won a US$ 1.57 billion contract from
Kuwait National Petroleum Company (KNPC) for setting up part of the Al-Zour
Refinery Project in Kuwait.
ONGC Videsh Ltd (OVL), the foreign arm of state-owned petroleum explorer Oil and
Natural Gas Corporation (ONGC), has planned to acquire up to 15 per cent stake in
CSJC Vankorneft, which owns Russia's second-largest oil and gas field.
4
Kirloskar Oil Engines Ltd (KOEL) and MTU Friedrichshafen, GmbH signed a
memorandum of understanding (MoU) towards exclusive cooperation on the building
and commissioning of emergency diesel gensets (EDG).
CDP Bharat Forge GmbH acquired 100 per cent equity shares of
MécaniqueGénéraleLangroise (MGL) for € 11.8 million (US$ 12.91 million) to
consolidate Bharat Forge’s position in the oil and gas sector by enhancing service
offerings and geographical reach.
Technip won a € 100 million (US$ 109.37 million) contract from ONGC to build an
onshore oil and gas terminal in Andhra Pradesh.
1.4. GOVERNMENT INITIATIVES
Some of the major initiatives taken by the Government of India to promote oil and
gas sector are:
The Ministry of Mines plans to restart operations in several hundred mines across the
country in order to raise the share of mining and quarrying industry in India’s Gross
Value Addition (GVA) by one percentage point from 2.4 per cent at present, over the
next two-to-three years.
The Union Cabinet has approved the National Mineral Exploration Policy (NMEP),
which will pave the way for auction of 100 prospective mineral blocks to attract
private sector in exploration, besides involving state-run agencies.
Mr Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas and Mr
Prakash Javadekar, Minister of State for Environment, Forests and Climate Change
have launched a pilot programme, aimed at introducing compressed natural gas
(CNG) as fuel for two-wheelers.
5
The Ministry of Petroleum and Natural Gas is seeking to enhance India's crude oil
refining capacity through 2040 by setting up a high-level panel, which will work
towards aligning India's energy portfolio with changing trends and transition towards
cleaner sources of energy generation.
The Ministry of New and Renewable Energy (MNRE) plans to launch an integrated
bio energy mission with an investment of Rs 10,000 crore (US$ 1.49 billion) from FY
2017-18 to FY 2021-22, aimed at enhancing the use of bio-fuels like ethanol and
biogas and reducing consumption of fossil fuels.
The Hydrocarbon Sector Skill Council (HSSC), which was set up by the Government
of India under its Skill India initiative, plans to train over 1.9 million people in the oil
and gas sector over the next 10 years, to cater to the rising skill needs of the
industry.
The Union Cabinet has allowed state-owned oil firms to evolve their own crude oil
import policies which involve freedom to choose source companies as well as pricing
for their crude oil imports, thus allowing them to compete in the market effectively.
In a major drive to enhance the petroleum and hydrocarbon sector, Government of
India has introduced initiatives like the Hydrocarbon Exploration Licensing Policy
(HELP), Marketing and Pricing freedom for new gas production, grant of extension to
the Production Sharing Contracts and assigning the Ratna offshore field award to Oil
and Natural Gas Corporation (ONGC) for development.
Mr Dharmendra Pradhan, Minister of State (Independent Charge) for Petroleum and
Natural Gas has released the Hydrocarbon Vision 2030 for North East India, with the
objective of leveraging the north-eastern region’s hydrocarbon potential; enhance
access to clean fuels, improve availability of petroleum products, and facilitate
economic development and to involve local population in the economic activities in
this sector.
6
The Government of India plans to incentivise gas production from deep-water, ultra
deep-water and high pressure-high temperature areas which are presently not
exploited on account of higher cost and risk, and also to augment the investment in
nuclear power generation in the next 15 to 20 years.
The Government of India is in the process of identifying at least 50 potential blocks of
100 sq km and above to be given to companies for bringing private investment in the
mineral exploration sector. The Ministry of Petroleum and Natural Gas has put up for
comments a draft policy, to opt for revenue-sharing model while auctioning future oil
and gas blocks for exploration to private companies, compared to production-sharing
mode earlier, in order to make the process more transparent and market-oriented.
The Ministry of Petroleum and Natural Gas has announced a new 'Marginal Fields
Policy', which aims to bring into production 69 marginal oil and gas fields with 89
million tonnes or Rs 75,000 crore (US$ 11.18 billion) worth of reserves, by offering
various incentives to oil and gas explorers such as exemption from payment of oil
cess and customs duty on machinery and equipment.
Government of India entered into bilateral discussion with Norway to extend co-
operation between the two countries in the field of oil and natural gas and
hydrocarbon exploration.
To strengthen the country`s energy security, oil diplomacy initiatives have been
intensified through meaningful engagements with hydrocarbon rich countries.
1.5. ROAD AHEAD
India’s oil demand is expected to grow at a CAGR of 3.6 per cent to 458 Million
Tonnes of Oil Equivalent (MTOE) by 2040, while demand for energy will more than
double by 2040 as economy will grow to more than five times its current size, as
stated by Mr Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas.
7
Gas production will likely touch 90 Billion Cubic Metres (BCM) by 2040, subject to
adjustment to the current formula that determines the price paid to domestic
producers, while demand for natural gas will grow at a CAGR of 4.6 per cent to touch
149 MTOE.
Exchange Rate Used: INR 1 = US$ 0.0149 as on September 21, 2016
2. COMPANY PROFILE
 Indian Oil Corporation Limited, or Indian Oil, is an Indian state-owned oil and
gas corporation with its headquarters in New Delhi, India.
 Indian Oil began operations in 1959 as Indian Oil Company Ltd. The Indian
Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd.
 Ranked at 88th position in the year 2013, it is the highest ranked Indian
corporate in the prestigious Fortune ‘Global 500’ listing.
 The company is mainly controlled by Government of India which owns
approx. 79% shares in the company.
 Indian Oil owns 10 of India’s 22 Refineries. The group refining capacity is
nearly 65.7 million metric tonnes per annum (MMTPA). It accounts for 31%
share of national refining capacity, 49% petroleum products market share and
71% downstream sector pipelines capacity in India.
 Indian Oil operates a network of 11,214 km with a capacity of 77.258 MMTPA
of crude oil and petroleum products and 10 MMSCMD of gas.
 Indian Oil has one of the largest petroleum marketing and distribution
networks in Asia with over 37,000 marketing touch point.
 Indian Oil Corporation Ltd. is India's largest company by sales with a turnover
of Rs. 4, 73, 210 crore and profit of Rs 7,019 crore for the year 2013-14.
 Indian Oil refineries process all major indigenous crude oil plus over 36 types
of imported crude oil, from which it produces more than 60 types of petroleum
8
products, ranging from light distillates, such as LPG, naphtha and motor spirit,
to heavy ends, such as furnace oil and low sulphur heavy stock.
2.1. OBJECTIVES OF IOCL
 To serve the national interests in oil and related sectors in accordance and
consistent with Government policies.
 To ensure maintenance of continuous and smooth supplies of petroleum
products by way of crude oil refining, transportation and marketing activities
and to provide appropriate assistance to consumers to conserve and use
petroleum products efficiently.
 To enhance the country's self-sufficiency in crude oil refining and build
expertise in laying of crude oil and petroleum product pipelines.
 To further enhance marketing infrastructure and reseller network for providing
assured service to customers throughout the country.
 To create a strong research & development base in refinery processes,
product formulations, pipeline transportation and alternative fuels with a view
to minimizing/eliminating imports and to have next generation products.
 To optimise utilisation of refining capacity and maximize distillate yield and
gross refining margin.
 To maximise utilisation of the existing facilities for improving efficiency and
increasing productivity.
 To minimise fuel consumption and hydrocarbon loss in refineries and stock
loss in marketing operations to effect energy conservation.
 To earn a reasonable rate of return on investment.
 To avail of all viable opportunities, both national and global, arising out of the
Government of India’s policy of liberalisation and reforms.
 To achieve higher growth through mergers, acquisitions, integration and
diversification by harnessing new business opportunities in oil exploration &
9
production, petrochemicals, natural gas and downstream opportunities
overseas.
 To inculcate strong ‘core values’ among the employees and continuously
update skill sets for full exploitation of the new business opportunities.
 To develop operational synergies with subsidiaries and joint ventures and
continuously engage across the hydrocarbon value chain for the benefit of
society at large.
2.2 OBLIGATIONS
Towards customers and dealers
To provide prompt, courteous and efficient service and quality products at
competitive prices.
Towards suppliers
To ensure prompt dealings with integrity, impartiality and courtesy and help
promote ancillary industries.
Towards employees
To develop their capabilities and facilitate their advancement through
appropriate training and career planning. To have fair dealings with
recognised representatives of employees in pursuance of healthy industrial
relations practices and sound personnel policies.
Towards community
To develop techno-economically viable and environment-friendly products.
10
Towards Defence Services
To maintain adequate supplies to Defence and other para-military services
during normal as well as emergency situations.
2.3. IOCL – DIGBOI REFINERY (ASSAM OIL DIVISION)
The Digboi Refinery in North Eastern India is India's oldest refinery and was
commissioned in 1901. Originally a part of Assam Oil Company, it became part of
Indian Oil in 1981. The Digboi refinery produces distillates, heavy ends and excellent
quality wax from indigenous crude oil produced at the Assam oil fields. The refinery
presently produces MS and HSD complying BS-IV grade. After modernisation the
capacity of the refinery has been enhanced to 0.65 MMTPA.
The refinery is ISO-9001, ISO-14001 and OHSAS accredited, its laboratory is NABL
accredited and follows TPM.
2.3.1. OTHER REFINERIES OF IOCL
Guwahati Refinery - Guwahati Refinery is the country’s first Public Sector Refinery
as well as Indian Oil’s first Refinery serving the nation since 1962. Quality LPG,
Motor Spirit, Aviation Turbine Fuel, Superior Kerosene Oil, High Speed Diesel, Light
Diesel Oil and Raw Petroleum Coke are the products of this Refinery. Its current
capacity is 1.0 MMTPA.
11
Bongaigaon Refinery – It was formed upon the amalgamation of Bongaigaon
Refinery & Petrochemicals Limited (BRPL) with Indian Oil on March 25, 2009. Its
current capacity is 1.35 MMTPA.
Barauni Refinery - Barauni Refinery, in Bihar was commissioned in 1964 and built in
collaboration with Russia and Romania with a capacity of 1 MMTPA. Its capacity
today is 6 MMTPA. It processes high-sulphur crude oil.
Gujarat Refinery - The Gujarat Refinery at Koyali in Western India is Indian Oil’s
second largest refinery. The refinery was commissioned in 1965-1966. The product
slate includes besides fuels, petrochemical products such as Linear Alkyl Benzene
(LAB), Polypropylene Feed Stock, Food & Polymer Grade Hexane. Its capacity is
13.7 MMTPA.
Haldia Refinery - Haldia Refinery was commissioned in January 1975. Its current
capacity is 7.5 MMTPA. Its products are MS, HSD and Bitumen, Jute Batching Oil.
Mathura Refinery - Mathura Refinery was commissioned in 1982. Its current
capacity is 8.0 MMTPA.
Panipat Refinery - Referred as one of India’s most modern refineries, Panipat
Refinery was built using global technologies from IFP France; Haldor-Topsoe,
Denmark; UNOCAL/UOP, USA; and Stone &Webster, USA in 1998 at a cost of Rs.
12
3868 crore (which includes Marketing & Pipelines installations). Its current capacity is
15 MMTPA.
2.3.2. A BRIEF HISTORY OF DIGBOI REFINERY
Digboi in Assam is an oil town that can be traced to the early 18th century, when oil
was first discovered here. Digboi can proudly boast of two unique features: a 113-
year-old extant oilfield and the world's oldest operating oil
refinery.
It is said that in 1867, a large group of men were engaged in
laying railway tracks for the Assam Railway and Trading Co. Ltd. in an area very
close to what is now the town of Digboi. They had to work in the dense forest where
the only visitors were animals, birds and insects. The place is said to have smelt of
the rain: soaked forest mingled with a heavy odour of something that smelt like oil.
Legend has it that an elephant hauling logs from the forest returned with distinct
traces of oil on its feet and trail. The excited owners of the elephant followed its
footprints and found seepage of oil bubbling to the surface. ‘Dig, boy, dig!’ probably
this is what the Englishman cried out to his men, hence the name Digboi. From that
day, this tiny habitat, among the rolling hills of Assam found a place in the map of the
world’s petroleum industry.
The first commercial discovery of crude oil in the country was, however, made in
1889 at Digboi when a group of men erected a 20 meter high thatch covered wooden
structure, marking the establishment of the first well at Digboi (Well No. 1 or the
Discovery well). Thereafter, systematic drilling began in 1891, and in 1901, Asia's
first oil refinery was set. In the meantime the AOC (Assam Oil Company) was formed
in 1899 to look after the running of the oil business in this area.
13
Today, though the production is very low, Digboi still has the distinction of being the
world’s oldest continuously producing oilfield. Digboi oilfield is not another oilfield, but
an oil museum with a history to be proud of.
2.3.3. DIGBOI REFINERY AT PRESENT
Digboi Refinery Today, with its vastly modernized operations and facilities, Digboi
Refinery is an ISO - 9002, ISO 14001 and OHSMS 1997 accredited Refinery,
manufacturing major petroleum products and a wide range of specialty products.
The marketing network has also been modernized and strengthened and today,
Assam Oil Division is proud that the Charging Red Rhino has made its presence felt
in other states like West Bengal, Orissa, Bihar, Haryana and Rajasthan.
Today IndianOil’s Assam Oil Divison prides in having some flagship CSR projects
namely IOCL (AOD) Hospital, Assam Oil School of Nursing, Shikshak Dakshta Vikas
Abhiyan, Sarve Santu Niramaya among many other regular socially committed
initiatives. The oil heritage of Digboi has been carefully preserved at the Digboi
Centenary Museum suitably located around India’s first Oil Well (drilled in year 1889).
This caring for heritage project tells the over 100 years old story of Digboi through
unique exhibits, equipments, plants and knick-knacks.
Digboi Refinery In the first phase of the Digboi Refinery Modernisation Project
(DRMP), a new crude distillation unit, captive power plant and associated offsite
facilities were installed and commissioned. This was followed by the installation of a
Catalytic Reformer Unit (CRU) in 1997 and a New Delayed Coking Unit (NDCU) in
1999. Digboi Refinery has thus made major investments in incorporating
technologies such as catalytic reforming for the production of “green” fuels and
eliminated use of harmful lead compounds in the production of motor spirit. It has
adopted the use of the eco-friendly hydrofinishing technology for treatment of wax by
14
installing a Wax Hydrofininshing Unit (WHFU) in 2001 and thereby eliminated the use
of acid/earth finishing process. Two more major units will are under commissioned –
these are the Solvent Dewaxing Unit (SDU) and Hydrotreater Unit (HDT). On
commissioning of these two units, the refinery would be in a position to produce a
larger quantity of wax through the SDU and also produce environmentally friendly
“green” fuels such as ultra low sulphur diesel. Besides enabling the refinery to
produce Aviation Turbine Fuel (ATF), the hydrotreater unit will also enable the
refinery to phase out the use of toxic sulphur dioxide for refining kerosene. The MSQ
Upgradation unit has been commissioned. A new terminal with state of the art facility
is under construction and expected to be completed by 2016.
Digboi Refinery With an original capacity of 0.50 million tonnes, the Refinery can
now process a 0.65 million tons of crude oil. The refinery is accredited with ISO 9002
and ISO-14001 certification, which implies that it uses all possible means to promote
environment protection through adoption of proactive pollution control measures.
Besides efforts within the refinery, Assam Oil actively promotes environment
protection, tree plantation and conservation efforts in and around Digboi and in all
other areas where it operates by interacting with local schools, colleges and various
social and non-governmental organizations. Digboi refinery is also accredited with
BS-8800, a standard testifying to its commitment to occupational health and safety of
its employees in its operations.
The refinery presently processes mainly high wax crude (HWC) and a small quantity
of medium and low wax crude (LWC). It turns out the conventional products such as
LPG, Motor Spirit, Mineral Turpentine Oil, Superior Kerosine, High Speed Diesel,
Light Diesel Oil, Furnace Oil, Bitumen, and Raw Petroleum Coke besides producing
some speciality products such as Solar Oil, Jute Batching Oil and most importantly
Paraffin Wax. In view of its low refining capacity of 0.65 million metric tonnes per
15
annum, Digboi refinery is endeavouring to maximise production of high value
speciality products.
2.3.4. DEPARTMENTS OF IOCL (AOD), DIGBOI
1) Admin & Welfare Department
2) Civil township
3) Contract Department
4) Corporate Communication Department
5) Employee Relations Department
6) Engineering Services Department
7) Finance Department
8) Health, Safety and Environment
9) Human Resource Department
10) Information Systems Department
11) Inspection Department
12) Internal Audit Department
13) Instrument Department
14) Maintenance Department
15) Materials Department
16) Management Services Department
17) Medical Department
18) Power & Utility Department
19) Production Department
20) Project Department
21) Quality Control
22) Security Department
16
23) Technical Services Department
24) Training and Development Department
25) TPM
26) Vigilance Department
27) Workshop
28) Zonal Office
17
3. ORGANISATIIONAL HIERARCHY
3.1. ORGANISATIONAL CHART AND STRUCTURE
Indian Oil being a Government Company under the administrative control of the
Ministry of Petroleum & Natural Gas, the Directors are nominated by the
Government. The corporation is managed by Board of Directors appointed by the
President of India. Besides the Chairman, the board has the following whole time
Directors:
SSV
Ramakumar
Director
(R & D)
Verghese
Cherian
Director (HR)
A.K.
B. Ashok Sharma
Chairman Director
Indian Oil (Finance)
Sanjiv Singh
Director
(Refineries)
B.S. Canth
Director
(Marketing)
Anish
Aggarwal
Director
(Pipelines)
18
The working of Corporation’s five divisions, namely
 Refineries Division
 Marketing Division
 Pipelines Division
 R & D Centre and
 Assam Oil Division
They are co-ordinated by a full-time Chairman. These four Divisions are headed by
Director (Refineries), Director (Marketing), Director (Pipelines) and Director (R & D)
respectively. Director (Refineries) is also the Director incharge of Assam Oil Division.
3.1.1. REFINERIES DIVISION
With the Head Office at New Delhi, the Refineries Division is the successor to the
erstwhile Indian Refineries Limited which was incorporated on 22.8.1958 as Private
Limited Company and subsequently amalgamated with the Indian Oil Company Ltd.
On 1.9.1964 to form the Indian Oil Corporation Limited having two Divisions, i.e.
Refineries and Pipelines Division and Marketing Division.
The Refineries Division is mainly concerned with the setting up and operations of
Refineries and Petrochemicals in India. It owns and operates eight Refineries at –
Guwahati (Assam), Bongaigaon (Assam), Barauni (Bihar), Vadodara (Gujarat),
Haldia (West Bengal), Mathura (Uttar Pradesh), Panipat (Haryana).
The Assam Oil Division has one Refinery at Digboi and has a network of marketing
set-up. There are two liaison Offices, one each at Kolkata and Mumbai.
19
Each Refinery unit is headed by ED/ GM who reports directly to Director (Refineries)
and the liaison office at Kolkata and Mumbai is headed by DGM, who reports to ED
(HR).
3.2. VISION WITH VALUES
Indian Oil nurtures the core values of Care, Innovation, Passion and Trust across the
organization in order to deliver value to its stakeholders.
Care Stands for
 Concern
 Empathy
 Understanding
 Co-operation
 Empowerment
Innovation Stands for
 Creativity
 Ability to learn
 Flexibility
 Change
Passion Stands for
 Commitment
 Dedication
 Pride
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 Inspiration
 Ownership
 Zeal & Zest
Trust Stands for
 Delivered promises
 Reliability
 Dependability
 Integrity
 Truthfulness
 Transparency
As management students we also need to learn about the significance of the IOCL
logo:
3.2.1. THE SIGNIFICANCE OF IOCL LOGO:
The Indian Oil logo essentially has the following elements:
A saffron coloured circle/globe
Enclosed by a dark blue coloured outer ring and a dark blue coloured band across on
which is written the name Indian Oil in Devanagri script.
The saffron circle represents energy as a derivative of the
Sun, connoting life and the future. The dark blue outer ring
and the horizontal band symbolize technology for harnessing this energy.
21
3.3. PRODUCTS AND SERVICES OF IOCL
1) Indane Gas - Indane is today one of the largest packed-LPG brands in the
world and has been conferred the coveted ‘Consumer Superbrand’ status by
the Superbrands Council of India. Indian Oil the second largest marketer of
LPG globally, after SHV Gas of The Netherlands. The Indane network
delivers 1.2 million cylinders a day to the
doorsteps of over 53 million households.
Indane is available in compact 5 kg cylinders
for rural, hilly and inaccessible areas, 14.2 kg
cylinders for domestic use, and 19 kg and 47.5 kg for commercial and
industrial use.
2) Auto Gas - AutoGas (LPG) is a clean,
high octane, abundant and eco-friendly
automotive fuel. Indian Oil has setup 350
Auto LPG Dispensing Stations (ALDS)
covering 192 cities across India.
3) Natural Gas – Indian Oil entered the Natural Gas business in 2004. In the
year 2013-14, it clocked total Natural Gas sales of 3.219 MMTPA.
4) Petrol/Gasoline - Automotive gasoline and
gasoline-oxygenate blends are used in
internal combustion spark-ignition engines like passenger cars, off-highway
22
utility vans, farm machinery etc. Indian Oil’s XTRAPREMIUM petrol is the
largest selling branded petrol in India and is a much sought-after fuel among
discerning motorists who are in many ways emotionally attached to their
wheels.
5) Diesel/ Gas Oil - Diesel is used in diesel
engines, a type of internal combustion
engine. Indian Oil’s XTRAMILE Super
Diesel, the leader in the branded diesel
segment, is blended with world-class multi-functional fuel additives.
6) ATF/ Jet Fuel – Indian Oil Aviation Service is a leading aviation fuel solution
provider in India and the most-preferred supplier of jet fuel to major
international and domestic airlines. Indian Oil is India's first ISO-9002 certified
oil company conforming to stringent global
quality requirements of aviation fuel storage &
handling. Indian Oil is the only oil company in
India to market the widest possible range of
fuels used by the aviation industry in India- JP-5, Avgas 100LL, Methanol
Water Mixture, Jet A-1 and aviation lubricants, etc. Indian Oil Aviation Service
refuels over 1500 flights.
7) SERVO lubricants and greases -
SERVO brand, from Indian Oil, is the
brand leader among lubricants and
23
greases in India and has been conferred the “Consumer Superbrand” status
by the Superbrands Council of India. In the retailing segment, besides Indian
Oil petrol stations, SERVO range of lubricants is available through a network
of a unique SERVO Stockist Management System (SSMS) across the
country.
8) Marine Fuels & Lubricants – Indian Oil caters to all types of bunker fuels
and lubricants required by various types of vessels operating throughout the
world in the shipping industry as well as to Indian Navy. Supplies are made
through pipelines, barges and tank-trucks.
9) Kerosene
10) Bulk/ Industrial Fuels - In the large volume consumer segment, Indian Oil's
provides complete Fuel Management Solutions to customers who require
fuels in bulk and have dedicated facilities for storage and handling.
11) Bitumen – Indian Oil produces bitumen from its refineries at Panipat,
Mathura, Koyali, Haldia and Chennai and markets it in bulk as well as packed
in steel drums. Bitumen is used for constructions of roads, runways and
platforms, Tank foundation etc.
12) Petrochemicals – These include products like Glycols, Linear Alkyl Benzene
(LAB), Polymers, and Purified Terepthalic Acid (PTA).
24
13) Special Products – Indian Oil refineries also manufacture petroleum
products for specific applications. These specific applications could be feed
stock for chemical industry, raw material for specific industries and solid fuels.
The petroleum products, produced for specific applications are called,
'Petrochemicals and Specialties (P&S) Products'.
P & S Products and their basic end uses:
 Benzene: Chemical industry
 CBFS: Carbon black manufacturers
 JBO: Jute industry
 LABFS: LAB manufacturers
 Micro Crystalline Wax (MCW): Pharmaceutical industry
 MTO: Paint industry
 Paraffin wax: Candle manufacturers
 Petcoke: Cement industry
 Propylene: Chemical industry
 RPC: CPC manufacturers
 Sulphur: Sulphuric Acid manufacturers and sugar industry
 Toluene: Explosives manufacturers
Digboi Refinery produces Paraffin Wax & Guwahati Refinery produces Raw
Petroleum Coke (RPC).
14) Crude oil - Crude oil - as petroleum directly out of the ground is called - is a
remarkably varied substance, both in its use and composition. Indian Oil
sources its crude oil requirement from Far East, Gulf region, Mediterranean,
West Africa and Latin American sources.
25
Among the Services of IOCL are:-
1) Refining
2) Pipelines
3) Marketing
4) Research & Development
5) Training
26
4. STUDY OF FUNCTIONAL DEPARTMENTS

4.1. PRODUCTION DEPARTMENT
4.1.1. INTRODUCTION
Petroleum refining processes are the chemical engineering processes and other
facilities used in petroleum refineries (also referred to as oil refineries) to transform
crude oil into useful products such as liquefied petroleum gas (LPG), gasoline or
petrol, kerosene, jet fuel, diesel oil and fuel oils.
Petroleum refineries are very large industrial complexes that involve many different
processing units and auxiliary facilities such as utility units and storage tanks.
An oil refinery or petroleum refinery is an industrial process plant where crude oil is
processed and refined into more useful products such as petroleum naphtha,
gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum
gas. Oil refineries are typically large, sprawling industrial complexes with extensive
piping running throughout, carrying streams of fluids between large chemical
processing units. In many ways, oil refineries use much of the technology of, and can
be thought of, as types of chemical plants. The crude oil feedstock has typically been
processed by an oil production plant. There is usually an oil depot (tank farm) at or
near an oil refinery for the storage of incoming crude oil feedstock as well as bulk
liquid products.
An oil refinery is considered an essential part of the downstream side of the
petroleum industry.
The Production Department of IOCL (AOD) is broadly categorised under three
heads, namely, HDTB & OMS,FS and WS.
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4.1.2. OBJECTIVES AND FUNCTIONS OF THE PRODUCTION

DEPARTMENT
Oil refining is the process whereby crude oil is split — refined — into commercially
useful products. Distillation is the primary means of separating the constituents,
which may be sold directly, or be used as feedstock for further processes. These
secondary processes may involve separation by extraction or may use catalysts to
change the chemical species such that a further range of products are produced.
The objective of refining crude oil is to meet the marked demand in the most
economical manner. The nature of the market (for example, whether there is strong
demand for motor gasoline or for kerosene) and the relative values of the individual
products (their marginal values) largely dictate the mix of refinery processes that are
used. The relative values of products differ, with the high value materials typically
occurring in the mid-boiling range materials such as motor gasoline, kerosene and
diesel fuel. Values are influenced by geographical location, market profile and by the
seasons.
Whereas a few refineries process a single source crude, most process a range of
crude oils, the choice being dependent partly on the price of the crude cargo, and
partly on the ability to most economically meet the product range demand.
Crude oil entering the refinery is first distilled in the crude distillation unit, operating at
nominally atmospheric pressure with a crude preheat furnace temperature in the
range 370-380°C, any higher temperature causing excessive thermal cracking. The
residue from the atmospheric distillation stage is then redistilled under a vacuum of
typically 10–50 mb absolute to recover heavier distillates using a heater temperature
up to approximately 400–440°C depending on crude type and distillate demand.
28
Liquid petroleum gases (LPG) are either sold directly, or converted to heavier high
octane products for motor gasoline. Propane is converted by catalytic polymerization,
and butane by isomeration or alkylation, to produce high octane liquid products for
motor gasoline blending. Naphtha is catalytically converted (reformed) to convert
naphthenes into higher octane aromatic components, also for motor gasoline (see
also Hydrocarbons). Gas oil is used, after sulfur removal, for diesel fuel and heating
oil.
Distillates from the vacuum distillation unit are used variously as hydrocracker or
catalytic cracker feedstock, both these units giving products ranging from LPG gases
to heavy gas oils. Heavy distillates from vacuum distillation are also used as direct
feed for the manufacture of lubricating oils in which case the distillates are further
processed to /remove aromatic components and wax. The residue from vacuum
distillation is normally used as fuel, road bitumen or petroleum coke.
Additional processes are used to remove sulfur compounds from both liquid and
gaseous streams. Between approximately 2–8% of the feed on an energy basis,
depending on refinery complexity, is used to provide fuel to the refinery
Units in IOCL (AOD) under Production Department.
Atomospheric and Vacuum Distillation Unit
Distills the incoming crude oil into various fractions for further processing in
other units. Further distills the residue oil from the bottom of the crude oil
distillation unit. The vacuum distillation is performed at a pressure well below
atmospheric pressure. It is designed to process 0.65 MMTPA of High Wax
Content(HWC) crude oil blend comprising Duliajan, Digboi and Kharsang
crude Oils.
29
Naphtha Hydrotreater and Hydrocracking Unit:
Uses hydrogen to desulfurize the naphtha fraction from the crude oil
distillation or other units within the refinery.
Uses hydrogen to upgrade heavier fractions from the crude oil distillation and
the vacuum distillation units into lighter, more valuable products.
Catalytic reforming unit (CRU):
Catalytic Reforming is a major conversion process that transforms low octane
Naphtha feed stock to high octane reformate (RON : 95) for use as a
gasoline blending component to make lead free petrol (MS). A rich
hydrogen gas (about 85-90% purity) and LPG rich off gas are obtained as
valuable by products. The reformer can also be run for the production of
reformate rich in benzene, toluene, and xylenes (BTX).
Converts the desulfurized naphtha molecules into higher-octane molecules to
produce reformate, which is a component of the end-product gasoline or
petrol.
MSQU (Isomerization) unit:
Converts linear molecules such as normal pentane into higher-octane
branched molecules for blending into the end-product gasoline. Also used to
convert linear normal butane into isobutane for use in the alkylation unit.
Delayed coking unit (DCU):
The Delayed Coker Unit (DCU) of Digboi Refinery has been designed for a
throughput of 1,70,000 Metric Tonnes per Year of blend feed consisting of
following streams:
Pressable Waxy Distillate (370-480C)
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Heavy Waxy Distillate (480-530C)
Short Residue ex. VDU (530C+)
LWC Bottoms ex. HPS Unit
Foots Oil ex. SDU
The unit is also designed to process long residue (370 C+) if necessary.
Further, about 1500 Kl per month of recovered slop oil from ETP, Terminal
Separators & Process Units after drying at Bench 'G' is also processed at DCU.
The unit upgrades the feed into Fuel Gas, LPG, Naphtha, Kero, LDO, CFO,
Coker residue and Coke. The unit mainly consists of a two pass coker furnace,
two coke chambers, quench column, coker fractionator, blow down system and
LPG recovery system.
Sulphur Recovery Unit (SRU) and Sour Water Stripping Unit (SWSU) :
SWSU is used to remove H2S and NH3 from the sour water streams. The sour
gases generated from this unit is sent to SRU for sulphur recovery or to Acid
Gas Relief header; the stripped water is sent to HDTU or to the ETP
Convert very heavy residual oils into end-product petroleum coke as well as
naphtha and diesel oil by-products.
Hydrogen Generation Unit:
The Hydrogen Generation Unit (HGU) consists of Desulphurisation,
Reforming and process gas cooling with High temperature shift conversion to
increase the hydrogen content of the process gas. Purification is done with
PSA Unit. The feedstock to the Hydrogen unit is Natural Gas.
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High Purity Nitrogen Unit:
In the petroleum industry, nitrogen is an indispensable component in a
number of processes. Most commonly, nitrogen is used to create an inert
environment for preventing explosions and for fire safety and to support
transportation and transfer of hydrocarbons. Additionally, nitrogen is used for
pipeline testing and purging, cleaning technological vessels and cleaning
liquefied gas carriers and hydrocarbon storage facilities.
Nitrogen is extracted from atmospheric air using the principle of Critical
Temperature of its constituents.
Solvent Dewaxing (SDU) and Wax Hydrofinishing Unit (WHFU):
SDU has been installed to remove oil from Wax Distillates by adding solvent
(MIBK) after being cooled in Feed Scraper Chiller in a Rotary Vaccum Filter.
WHFU has been installed to improve colour of the Deoiled wax by removing
impurities i.e., Sulphur, nitrogen, aromatics, etc with the help of Hydrogen in
presence of Nickel-Molybdenum.
Wax Rundown Shed(WRDS) and Wax Pelletization Unit:
The objective of WRDS is to mould White Wax into Slabs in Moulding
Presses
Wax Pelletization, converts the wax into pellets for sale.
Effluent Treatment Plant (ETP) :
The ETP is situated at a distance of about half a kilometre outside the
Refinery premises and is designed to treat the oily effluent from the Refinery.
32
LPG Despatch Unit (LDU) :
LDU is located at a distance of about half a kilometre away from the Refinery
premises. LDU receives LPG from LPG Recovery Unit (LRU) of the Refinery
from where bulk despatch of LPG through Tank Truck is made.
Oil Movement and Storage:
Receiving, Storing and Pumping of Crude Oil and Petroleum Products.
Product Pump House (PPH): Intermediate products from different units are
pumped to PPH for storage where blending of some of the done to make
finished product and finally pumped to NTF. Some finished products are also
directly despatched from PPH.
New Tank Farm (NTF) : NTF is a storage area of finished products viz, MS ,
SK , HSD, LDO & FO which are received from Product Pump House and then
pumped to their respective storage tanks at Tinsukia Terminal Depot located
at a distance of 35 Km through two product pipelines.
Cooperage: The function of the cooperage section is to facilitate despatch of
Foots Oil, Indmax Feed and Reformate to Guwahati Refinery and also receipt
of Heavy Naptha ex Guwahati Refinery.
It is also responsible for supply of Speciality products like JBO, MTO, Solar
Oil, WDM, Spl. Hy. Kero etc. to AOD’s Marketing Wing’s customers through a
tank lorry filling shed known as North End Filling Shed as per demand. It also
engages in despatch to HSD through tank lorries.
33
.4.2. FINANCE DEPARTMENT

4.2.1. INTRODUCTION
Every organization irrespective of its size relies on its financial health for its survival.
The analysis of financial data is carried out by the finance department. The process
of financial analysis is employed to evaluate past, present and likely future
performance of the organization. The financial strength and weakness of the
organization is established based on the balance sheet and P&L account prepared
by the finance department.
Finance department manages the fund available for the operations of the business,
by making a balance between the fund inflow and fund outflow. The management of
all activities related to finance requires considerable expertise and specialized
knowledge of banks, financial institutions, the different sources of finance and ways
to profitability utilize these funds. Finance Manager directly does the planning,
organizing, directing and controlling financial activities in the society.
This department keeps account of all the financial transactions of the company. The
accounting period of IOCL (AOD) is from April 1st of one year to March 31st of the
next year. IOCL (AOD) has a fully computerized accounting system that facilitates
fast operations of its various functions. All the transactions of production unit starting
from the issue of goods received to the final documentation is computerized. The
strategy that the company has adopted is to go for credit transaction and payment
will be made in one month of time.
34
4.2.2. OBJECTIVES AND FUNCTIONS OF FINANCE DEPARTMENT
OBJECTIVES OF FINANCE DEPARTMENT:
To ensure regular and adequate supply of funds to the concern. To ensure adequate
returns to the shareholders which will depend upon the earning capacity, market
price of the share, expectations of the shareholders. To ensure optimum funds
utilization. Once the funds are procured, they should be utilized in maximum possible
way at least cost. To ensure safety on investment. Maximization of profit of the firm
Wage disbursement. Budget preparation
RESPONSIBILITIES OF FINANCE MANAGER:
Utilization and control of funds planning the quantum and pattern of fund requirement
procuring the required amount of funds and allocating the funds Verification of
accounts Preparation of budget financial planning
The major functions of financial department are:-
 Accounting the transactions carried out by the company and to prepare
monthly and annual financial statement.
 Arrange finance for working capital management requirement, capital
addition, and other day to day needs.
 Working capital management.
 Liaison with financial institutions and banks.
 Dealing in all taxation matters
 Budgetary control and MIS
35
FUNCTIONS OF FINANCE DEPARTMENT:
To prepare Cash Flow and Fund Flow Statements To prepare quarterly financial
reports Supervise internal audit costing, budgeting and other internal control System
To analyze and evaluate various trends such as net worth ratio, debt equity ratio and
current ratio To estimate the value of fixed assets, current assets and liabilities To
prepare final accounts and this should be submitted to top management for approval
The Functions of accounts department at the plant level has been divided into:
1. Financial account
2. Cost account
3. Wages and Salaries
4. Sales tax and other taxation
Financial Accounts
This branch deals with all types of cash payments and receipts. This will include
payment for engineering and raw materials purchase, petty cash payments,
operation and reconciliation of bank accounts ,payment to the government in the
form of taxes and levies ,payment of PF ,deduction from salary and payment of loan
outstanding and insurance premium of employees ,fright payments, payment in lieu
of travel allowance ,medical re imbursement etc. Cash receipts in the case of scrap
sales and any other cash receipt will also come under this branch of accounts.
Cost Accounts
This branch deals with forecasting ,budgeting, analyzing and reporting the income
and expenditure of the company .The budget for expenditure is prepared using
standard costing principles and it is compared with the actual expenditure .Any
36
variation from the budget is analyzed to find the exact reason and it is reported to the
top management.
Wages & Salary
Computation of wages and salary is done by this section of accounts department.
Wages of workmen are fixed in the long term agreement and are calculated on a
daily basis depending on various factors like grade, working hours, output achieved
etc.
Sales Tax and other taxation
All matters related to sales tax are handled by this section. Monthly returns for sales
tax are filed on behalf of sales depots. VAT (Value Added Tax) system has been
introduced and all matters related to this are also looked after by this branch of
accounts. “C” forms for purchases from outside the stare and “F” forms are issued for
receipt of goods from depots. Other statutory taxes such as Excise Duty, Service
Tax, Entry Tax, TDS etc. are dealt in this section.
SOME SECTIONS OF FINANCE DEPARTMENT
FINANCIAL CONCURRENCE SECTION
Purchase of raw material and incurring of any other expenditure can be done by only
with the concurrence of finance department.
PROVIDENT FUND SECTION
This department takes care of the employee’s provident fund and pension funds.
This section arranges the recovery of provident fund from the employee salary. The
present statutory minimum recovery is 12 percent. The employees are allowed to
contribute higher quantum voluntarily. The company also contributes 12 percent of
37
each employee’s salary into the provident fund account. The amount contributed by
the employee and employer along with the interest is paid to the employee at the
time of retirement or resignation or separation of employee.
WAGE SECTION
This section deals with salaries and wages of all personnel. The wages section
prepares the pay roll every month on the basis of muster roll given by time office.
The pay roll preparation process is computerized. This section also deals with the
advances to employees.
CASH SECTION
This section is concerned with all receipts and payments. This section keeps the
cash day book and bank day book. The payment vouchers prepared by inward bill
section, wages section and other section are sent to the cash section for final
payment. The salary to the workers and supplementary payroll for all employees are
prepared by cash section. When the payments or advance cheques are received
from
the customer against invoice, the same is presented to bank by the cash section.
Cash section is responsible for ensuring that the cash credit does not exceed the
limit.
MAIN ACCOUNTS SECTION
This section records the various transactions accounted by other sections. This
section prepares the final account. Main account section prepares the balance sheet
of the unit every year.
38
COST AND MATERIAL SECTION
This section deals with the keeping of cost data. Price fixation is also done by this
section by making use of costing technique. This section estimates the standard and
actual cost of the machine manufactured by the company. This section prepares the
data for selling price of the machine, special accessories and spares. The cost data
for the cost fixation of spare parts is furnished by this section. This section maintains
computerized store ledger and stock statements. It also prepare annual budget on
the basis of production programmes, sale programmes and capital budgets. This
section is responsible for all MIS and section also prepares cost monitoring report.
39
4.3. MARKETING DEPARTMENT
4.3.1. INTRODUCTION
The marketing department of IOCL (AOD) is completely controlled by Guwahati State
Office, which is under the Marketing Division of IOCL. AOD has a setup which is
known as Zonal Office and it manages few jobs under the Marketing head.
No interface with Pipelines as crude is delivered to Digboi Refinery (DR) through
Pipeline owned & operated by Oil India Limited. Products from DR is transferred to
Tinsukia Terminal of Mktg Division through Digboi Tinsukia Product Pipeline (DTPL).
DTPL is owned , operated and maintained by Digboi Refinery . No set up from
Pipeline Division is existing here. Zonal Office , Digboi plays the role of Pipeline
Division and certifies the dips & Qty outurns from DTPL jointly with DR. Zonal Office
raises the SAP indents for transfer of product to DTPL from DR.
Movement of some products takes place directly from dispatch Unit located inside
the Refinery . All such transactions are booked under Mktg Division.
Such products are:
RPC – Sale through E-auction route to within state & outside state customers.
Paraffin Wax- Direct sale to customers/stock transfer to up country stock points of
IOCL. Bijwasan, Sangrur, Kolkata are major stock points. From stock points , product
is sold to retailers/distributors or any other customers.
HSD- Sale of some quantity to local ROs/ Bridging Stock transfer to Doimukh Depot
(as per requirement).
LPG- Bulk stock transfer through LPG Bullet trucks to Bottling plants of IOCL
Primarily to Gopanari BP.
40
Specialty Products like MTO, WDM , Binder Oil, Sulphur-Direct sale from Digboi.
For stock transfer , STOs are raised by respective locations on plan.
For direct sale of Paraffin Wax & specialty products Ex Digboi, contracts are raised
in SAP by concerned Divisional Offices of Mktg Division .
Some customers are issued products through direct processing of their requirement
by Zonal Office, Digboi.
Products are released only after generating SAP invoices against the customer
/Plant /vehicle in isolation or combination.
Zonal Office, Digboi plays the role of Supply & Distribution Office for Paraffin Wax &
Specialty Products . Further , it co-ordinates with Mktg Division & DR for evacuation
of any product of DR.
4.3.2. OBJECTIVES AND FUNCTION OF THE MARKETING DEPARTMENT
Zonal Office is divided into the following sections, they are listed below with their
functions and responsibilities.
Various sections in IOCL (AOD) under Zonal Office.
1. Health Safety and Environment (HS & E):
 Team mobilization and Inspection of 34 plants, Retail Outlets, RO under
construction, Re-inspection of vulnerable locations, Inspection of Land as part
of State Level Committee member, Surprise safety Inspection of location in
NE and outside NE.
 Data collection from 31 locations, Retail etc. for Monthly MIS Report, Part-1,
Part-2, RESD (Renewable Energy Sustainable Development) Data.[ Sludge,
41
Rain Water Harvesting, Plantation, Environment Friendly Lights & Energy
Saving, Use of Renewable Energy]
 Monitoring of Near miss reporting, uploading & analysis.
 Communication of HSE Policies, Guidelines, Materials Specification etc
 Behaviour Base Safety: BBS Implementation & monitoring in plants.
 Monitoring of Action Points of Special Safety Audit, Multi-Disciplinary Team,
MB Lal Committee, External safety Audit, OISD Audit Action Points, Surprise
Safety Inspection, GM/Eds Inspection.
 Monitoring and execution of Action points of Monthly Safety Committee
Meeting, Quarterly State Safety Council Meeting, Apex Safety Committee
Meeting.
 Monitoring of Training (as per OISD-154) data, location wise for various
category(Officer, BCW, Security staff, Contractor staff, TT Crew
 Monitoring of Disaster Management Plan (DMP), HAZOP, QRA, ERD.
 Monitoring of data of Training to Drivers of Hazardous Material Carrying
Vehicles as per CMV Rule.
 Monitoring and maintaining accident reporting & investigation and approval
online.
 Organising Designated Safety Officer’s(DSO) Conference-cum-Training,
SSOT Training, trainings to Retail Outlet staff & Officers, Construction Safety
Trainings to Engg. Personnel.
 Extending faculty service for various trainings, Safety Awareness survey,
Annual Safety Award jobs, Scrutiny & Approval of Layout Drawings,
Coordination with AOD, Occupational health service for periodic health
checkup of employees.
 Providing electrical relay testing services from AOD Electrical Test Lab.
 Extending Faculty service for various trainings.
42
 Monitoring & celebration of activities of National Safety Day, Fire & Safety
Week, ENCON Week, World Environment day, Safe Driving campaign etc.
2. Speciality Products and Supply & Despatch (SP and S&D)
 To co-ordinate for supply of wax & other speciality products Ex
products(through stock transfer & sale as applicable) .
 To co-ordinate for stock transfer of LPG & HSD Ex Digboi.
 Contract management of wax transportation , handling /shifting of wax bags ,
Sundry Jobs in Zonal Office & LDU .
 Contract management of stream sharing of SRN , Reformate , Foots Oil
between Digboi Refinery & Guwahati Refinery .
 Replying to RTI /Audit queries.
 To co-ordinate with transporters, vendors , Customers, various Marketing
Locations & setups of IOCL , departments of DR as required.
 Generating various type of MIS & reporting.
 Processing of payments for wax transportation , handling /shifting of wax
bags , Sundry Jobs in Zonal Office & LDU.
 Co-ordinating with Digboi Refinery & Guwahati Refinery for payment of
transportation bills of stream sharing contracts.
 Refinery Co-ordination jobs for Digboi Tinsukia product pipeline.
 Vendor /customer management in SAP.
 To co-ordinate with COIS for any SAP related problem pertaining to S & D
module and anything of general nature.
 Supervision of works of sub ordinate officers & staff of Speciality Products, S
& D section , Wax Dispatch Unit, Sales section , S & RC .
 Any other job as per situational needs.
 To co-ordinate for supply of wax & other speciality products Ex products
(through stock transfer & sale as applicable).
43
 To co-ordinate for stock transfer of LPG & HSD Ex Digboi.
 Contract management of wax transportation, handling /shifting of wax bags ,
Sundry Jobs in Zonal Office & LDU .
 Contract management of stream sharing of SRN , Reformate , Foots Oil
between Digboi Refinery & Guwahati Refinery .
 Replying to RTI /Audit queries.
 To co-ordinate with transporters,vendors , Customers, various Marketing
Locations & setups of IOCL , departments of DR as required.
 Generating various type of MIS & reporting.
 Processing of payments for wax transportation , handling /shifting of wax
bags , Sundry Jobs in Zonal Office & LDU.
 Co-ordinating with Digboi Refinery & Guwahati Refinery for payment of
transportation bills of stream sharing contracts.
 Refinery Co-ordination jobs for Digboi Tinsukia product pipeline(Plant 7L05).
 Vendor /customer management in SAP.
 To co-ordinate with COIS for any SAP related problem pertaining to S & D
module and anything of general nature.
 Supervision of works of sub ordinate officers & staff of S & D section , Wax
Dispatch Unit, Sales section , S & RC .
3. Maintenance and Inspection (M & I)
 Finalization of Business Plan on annual basis for Zonal Office, Digboi for HO
MOU target.
 Unscheduled Inspections of tanks arising out of exigencies in any locations.
 Scheduled Inspections of Railway Siding Pipelines.
 Scheduled Inspections of Other Pipelines ( Other than railway siding) and
Hydrant pipelines
 Scheduled Inspection of Pumps and Vibration monitoring and analysis
44
 Maintenance Indexing of Locations on Annual basis.
 Finalization of Maintenance Indexing for All India and Zonal best maintained
locations.
 Conducting 3 Days (1 no.) and 2 days (1 no.) M&I Training cum Workshops.
 Pre-commissioning Inspection and Indexing of newly commissioned
Terminals / Depots.
 Inspection of Ongoing Depot / Terminal / Engineering projects as and when
advised by HO.
 All India Selection of Best Maintained locations as and when advised by HO.
 Finalization of Monthly MIS every month and submission to HO
 Finalization of Qrty MIS every quarter and submission to HO.
 Conducting Quarterly Review Meeting at IO-AOD State Office, Guwahati
every Quarter with State Head, Ops. SO head and Engg. SO head and
submission of M&I Review Meeting Minutes to HO.
 Attending Quarterly HO M&I Conference Meeting and presentation of M&I
ZOD performance at HO involving HO Ops., HO Engg. And HO M&I.
 Failure Case Study Presentation at HO as and when required during
Conference.
 Providing M&I Training Faculty support to Other regions as per advise from
HO.
 Follow up actions involving regular close co-ordination and communication
with State Ops. and Engg. for liquidating Major / Critical Recommendations.
 Providing technical guidance and assistance to Locations for effective
improvement in Maintenance activities, PM/PDM and improvement in
Indexing.
 Proving Technical Guidance and support to locations for prepartions of
Correct P&ID, Isometric, Pipeline layout, as Built Drawings , earthing Layout
Drawings etc.
45
 Providing Technical Guidance and Support to State Engg. & Ops. for
finalization of rate Contracts for MFL/ LFET and execution and monitoring of
the same Jobs at locations.
 Proving Technical knowledge as In house Faculty to Location designated
M&I officers.
 Conducting One Day In House Training Programmes to Locations.
3. Quality Control
 To submit MIS/MPR to CQCM (HO) Mumbai on or before the 5th of every
month.
 To give failure report of any Marketing samples (Divisional Office, Terminal,
Retail Outlet and Govt agencies) to CQCM,HO,Mumbai.
 Product failure investigation whenever is necessary.
 To visit and carry out the QC Inspection of all Non-Aviation Depots &
Terminals in the North East at least once in a year. Audit to be done online
but presently which are carrying out manually.
 To prepare Capital & Revenue Budget under guidance of DGM (ZS).
 To provide Faculty Assistance to Marketing location for enriching QC related
knowledge.
 Constant monitoring to the department at Digboi Finance & Material for
getting the status of PR/POs for Lab, instruments of NERL.
 Constant monitoring to the Finance department for release of contractors
payment.
 Carryout QC Inspections of Retail outlet for five (5) district of North east
region including Nagaland, Manipur, Barak Valley and part of Arunachal
Pradesh.
 Target for Digboi base Mobile van is 600 Ros.
46
 To arrange Regional QC conference once in a year at Guwahati in
consultation with DGM (ZS).
 To participate in Head Office QC conference organizes by HO, Mumbai.
5. North East Regional Library (NERL) , Betkutchi TOP
 HOD & Overall responsibility to managing NERL activities of Testing &
Certification of products, Quality Assurance.
 Setting up of Testing infrastructure, upgradation , maintenance.
 Management of NABL Quality System, continuous development, continuation
of accreditation
 Overall coordination / liaison with AOD/IOAOD, Mktg HQ and other internal &
external service providers/Customers
 Training & Development of manpower
 Planning & Budgeting & implementation of projects
 Cost Management
 Quality Certification in SAP, Purchase, AMC, Housekeeping, Payment
related, Testing & Certification of Products, Coordination with Internal &
External Agencies, Budgeting,
47
4.4. HUMAN RESOURCE DEPARTMENT
4.4.1. INTRODUCTION
The Corporation recognises the importance of human capital for the success of its
business. The Corporation acquires the best talent in the country from leading
institutes and universities and has been working towards nurturing and retaining
talent. Job rotation and inter-location transfers throughout the organisation facilitates
planned development of careers and broaden outlook. In view of the rising
competition in the domestic market, acquiring and retaining manpower is a challenge.
Indian Oil continues to align its HR strategies with organisational strategies. The
employee strength of Indian Oil as on 31st March, 2016 was 32,803 including 15,722
officers.
4.4.2. OBJECTIVES AND FUNCTIONS OF HR DEPARTMENT
OBJECTIVES
1. Design and develop an organizational structure with well defined relationships
commensurate with the business plans and corporate strategies
2. Promote and develop co-operative attitude amongst employees by fostering
harmonious relations at all levels and inculcate sense of belonging
3. Evolve progressive and pragmatic personnel policies, procedures and
practices and ensure its uniform interpretation and judicious implementation
4. Promote and inculcate the culture of employees’ participation in management
5. Inculcate productivity consciousness amongst employees.
6. Administration of Electronic Performance Management System and
Productivity Incentive scheme
48
7. Changed agent to new interventions.
The HR Department directs its activities through three channels:
1. Service to workers – To inculcate sense of ‘ownership’ amongst workers
towards work and work place as also the Corporation at large in order to
develop sense of responsibility, discipline, goodwill and commitment towards
the organization and promote good relations among employees.
2. Service to the supervisory personnel – To assist this group to understand
personnel practices in order to provide leadership and to maintain and
develop good relations with the workers.
3. Service to Management – To assist the Management in the development
and formulation of sound policies relating to personnel matters in the
organisation as a whole, to interpret the organisation’s personnel policies, to
ensure uniform application of personnel practices by all departments and to
co-ordinate the practices of different sections.
FUNCTIONS
1. Staffing
 Manpower planning
 Determine the organizational structure and optimize manpower to
effectively meet Company’s objective
 Job description
 Recruitment
 Personnel records
49
 Promotion
 Transfer
2. Personnel Maintenance
 Motivation
 Performance Appraisal
 Recreation
 Communication
 Employee amenities – canteen, clubs etc.
 Safety
 Medical Services
 Security
3. Developing the Human Resource
 Induction and apprentice training’
 Training and development of employees
4. Industrial Relations
 Productivity Bargaining
 Grievance Handling
 Discipline Administration
 Providing joint consultative machinery – Joint Management Councils
5. Compensation
50
 Wage & salary surveys and controls
 Negotiations
 Incentives/ bonus
6. Personnel Policy & Planning
 Defining organizational goals, policy guidelines and strategies
 Formulating & implementing personnel policies
7. Time Keeping
The office time is also come under the HR Department. The office time
carries out the following function.
 Attendance detail
 Leave details
 Daily reports.
Working hours (24 hours)
 Morning Shift : 6am-2pm
 Evening shift : 2pm-10pm
 Night shift : 10pm-6am
 General shift : 8am-5pm
51
4.5. IT DEPARTMENT
4.5.1 INTRODUCTION
Information System Department (I.S. Dept.) comes under the HR Department in
AOD.
Till 2005 it included the Payroll and other Management function but now only unit
level role is being played by the department.
Corporate IS (COIS) handles the Email(Exchange server), Internet and other SAP
related function like Material Management, Payroll, Personal Data of Employees and
Production data.
The IS Department in AOD works at the unit level and is broadly classified under the
following Heads, which is taken care by each assigned executives.
 Network / Server Maintenance
 Asset Management
 Event Management
 Software Development
 Website Maintenance
 Procurement
The various associated functions are discussed below.
4.5.2. FUNCTIONS OF THE IT DEPARTMENT
The various functions and roles of the IT Department is divided among three division.
They work in coordination with each other and finally give the complete IT solution as
required by the organisation.
1. Network/ Server, Asset and Event Management
Sharing of I.T Knowledge for ensuring betterment of the conscious level of
users, I.T. Training, Knowledge sharing,
52
Maintenance of Antivirus Server – MacAfee, Windows Update Server - MS
SCCM Server, Indian Oil Internet, Indian oil Domain, Indian oil Exchange
Mail, Exchange Administration.
Digboi Refinery LAN Maintenance, LAN links and MPLS links and WAN
Maintenance.
Annual Maintenance related to Network, Network/Desktop, LAN AMC
Handling of various Event Management using Webcast and Video
Conferencing and other IT support for the same
Taking Project Assignment and Network Projects and handling them
accordingly
Some procurement related to Networking i.e., Manpower and Hardware.
2. Software and Website
Development of In-House Software for ease of operation for end users.
Facilitating Data maintenance and Data backup
Developing and maintaining the Attendence Monitoring System
Website Maintenance
3. Procurement
Various Hardware and Software procurement for the Department
Manpower planning and procurement
SAP related issues (Plant/Unit Level)
53
5. SWOT ANALYSIS
SWOT ANALYSIS OF THE ORGANIZATION
STRENGTHS WEAKNESSES
 Part of India's largest
 Legal issues
commercial enterprise
 Employee
with a strong brand
management
name
 Bureaucracy
 Has maximum market
 Volatility in the crude
share in sale of
market & subsidy
petroleum products in
burden
Northeast
 Govt. Regulations
 Huge distribution
 Manpower planning
network through
and Training
retailing
 Huge skilled Manpower
and other resources
 GPW rank 34 in the
year 2016
OPPORTUNITIES THREATS
 Increasing fuel/oil  Government
prices regulations
 Increasing natural gas  High Competition
market
 More oil well
discoveries in Northeast
India
 Expansion of export
market
 Interdepartmental
Coordination
54
6. SUMMARY OF FINDINGS
IOCL (AOD) gives an insight about the functioning of the different departments. Each
department is headed by the General Manager or the Deputy General Manager who
possesses expertise, knowledge in the area under his supervision. There always
exists an ergonomic atmosphere which is often made possible by the close
interaction between all members in each department. The top management moulds
the strategies and policies that make sure that the middle management implements
them. Weekly interdepartmental meeting aims at bringing coordination between the
different departments.
All the different activities that go on in a business are interdependent and work
together to create value for the customer and wealth for the business. The different
departments of the business are interdependent; that is, they rely on each other and
work together to achieve the objectives of the business. Within a business, it is the
role of management to coordinate all the organizational departments and ensure that
they work together for the overall success of the business. These departments
support the main goals of the business. They are very dependent on each other, and
it is very important to understand the interrelationships between them. The way that
one functions might decide to achieve its goals could affect the whole business, so
considerable cross-functional coordination is required.
In IOCL (AOD) there is a functional interdependence between different departments
as different functions communicate with each other in order to meet the business
aims and objectives.
The heads of the material department and purchase department are accountable
for effective discharge of purchase functions within the framework of purchase
policy of the company.
55
The production planning department is the most vital link between product design
and the production department. The production planning department provides the
necessary facilities and technical know- how for the manufacture of the product.
Human Resource department is directly related to all the other departments as it
controls all the manpower requirements in the organization.
Production is the functional area where the raw materials are converted into finished
products through a series of production process. It is done by keeping quality
conscious in mind. The quality control department ensures the quality right from the
procurement of crude, at each stage of production and also before dispatching to
Tank farm for storage. Production department also functions by collecting information
both from materials as well as marketing department.
The interdependence of quality control department with the production, finance,
quality control and HR department is necessary as it deals with products, its quality,
payments and man power.
The interrelation of finance department is between materials, production, marketing,
quality control and HR departments. In addition to the major functions of budgeting,
raising funds internally and from financial institutions and utilization of funds for
growth of performance, it deals with all the internal and external cash and payment
transactions.
56
7. SUGGESTIONS AND RECOMMENDATIONS
Based on my experience at the humongous oil company of India, the following
suggestions are humbly put forward:
1. Knowledge Transfer
It’s an area which requires the attention of IOCL (AOD). When an employee
joins an organization He/ She learn a lot on the job along with other trainings
and other imparted to Him/ Her. This immense knowledge stays with the
employee, which needs to be properly channelized and transferred to his/ her
counterparts or colleague.
2. Succession Planning
When an employee retires or gets transferred to different location, the new
employee joining in that vacant post should be properly trained and this whole
process should be planned as best as possible.
3. Improve Employee Utilization and Productivity
Implement some form of time recording by capturing timesheets we can
understand the current utilization and productivity
Manage Customer Expectations – communicate to the entire team the
importance of managing the customer’s expectation from initial enquiry all the
way through to delivery.
Encourage Collaboration – boost the productivity by creating an environment
where your team members can easily share knowledge, ideas and lessons
learned. This will not only improve individual productivity it will help improve
project standards and service delivery.
57
4. Interdepartmental Coordination
The coordination between all the departments can be made better, although
the corporation does have many provisions for that but this is one aspect
which can be worked on. Incorporating new ways to efficiently manage this
aspect can be developed.
5. Assessment tools
The training department engages the employees in various forms of training

but the learning in the same needs to be quantified. Tools needs to be
developed to help in gauging the knowledge gained and things learned.
8. CONCLUSION
It has been an extremely vigorous and knowledge-driven training with Indian Oil
Corporation Limited (AOD). Being an employee at the Maharatna Award winner has
been an honour as well as a journey in which I embarked upon with a strong desire
to be acquainted with the actual working environment in a Public Sector in its various
Unit.
Any organization requires a clear & well-defined organization structure for the many
arms and legs of the organization to function in harmony. There are different types of
organization structures, each having its own advantages and disadvantages. A
company may choose one of those structures or customize one for itself. But even a
customized one will fall into one of the broad categories.
The organization structure at Indian Oil is a good example of unity in diversity. All the
division of Indian Oil have a common agenda, vision and mission but their way of
approaching them slightly differs from each other. The organization structure of
Indian Oil is a dynamic one which is revised at regular intervals to increase efficiency
of the organization.
58
The hierarchy followed in Indian Oil is almost similar in every department across all
divisions. A few engineering departments have some special posts for technical jobs.
The Board of Directors are above the hierarchy order and are nominated to the
posts, not promoted.
Indian Oil hires the best talent who can be trusted upon to keep the historical pioneer
in the areas of petroleum & natural gas functioning efficiently and smoothly. It
believes in a two-way process. It takes care of its employees and empathizes with
them on both happy and unfortunate occasions. Indian Oil is acclaimed to be one of
the best PSU in India in terms of employee benefits and job security.
To conclude, Indian Oil is a mini state, an entity in its own in which hard work is the
key to innovation.
BIBLIOGRAPHY(IN APA STYLE)
1. Application for 6th Annual Greentech Award for Training Excellence
2. https:www.iocl.com/
3. http://www.ibef.org/industry/oil-gas-india.aspx
4. Organizational Designs for Excellence - Pradip N Khandwalla, Director, IIMA
5. Office manuals – HR, Finance, Zonal Services, IS and Production
6. Project Report on IOCL: Functions of Training & Development Department –
Shubhi Mittal
7. Research Methodology: Methods and Techniques, C. R. Kothari
59

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Organisational Study

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A Report on Organisational study at Indian Oil Corporation

Limited (AOD), Digboi

Submitted in partial fulfilment of the requirement For 3rd

semester of Master of Business Administration Of Krishna

Kanta Handiqui State Open University

Registration No.: 15025401

Under the guidance Of :

Mr. Naveen Mugadur, DM(ER), IOCL (AOD)

Mrs. Indrani Banerjee, Faculty of Humanities, LSS (DIGBOI)

“An Organisational Study at Indian Oil Corporation Limited (AOD), Digboi”

of Business Administration offered by Krishna Kanta Handique State Open

Date: Signature of the Student

Place: DIGBOI Name: Abhijit Debnath

Reg no.: 15025401

CERTIFICATE FROM THE GUIDE

3rd Semester of Master of Business Administration offered by Krishna Kanta

award of any Degree, Diploma, Fellowship or other similar title or awards.

Date: Signature of the Guide

Name of the Guide: Indrani Banerjee

Designation: Subject Teacher, Faculty of Humanities

Institution Name and Address:

The Little Stars Senior Secondary School,

Borbil, Digboi, Assam

CERTIFICATE FROM THE ORGANISATION

Organisational Study at Indian Oil Corporation Limited (AOD), Digboi”

of Business Administration offered by Krishna Kanta Handique State Open

The information submitted is true, original and authentic to the best of my

Name: Naveen Mugadur

Designation: Deputy Manager(ER)

On completion of my Organizational Study Report, I feel deeply indebted to

many. Let me avail this opportunity to express my deep sense of gratitude to

preparation of this report.

Thankfully I express my gratitude to Mr. Naveen Mugadur, DM(ER), IOCL

I take this opportunity to extend my gratitude to my parents and other family

members for their encouragement on completing this work. My sincere thanks

1.1. INTRODUCTION ...................................................................................................................... 1

2. COMPANY PROFILE ................................................................................................................. 8

2.1. OBJECTIVES OF IOCL............................................................................................................ 9

3. ORGANISATIIONAL HIERARCHY ........................................................................................ 18

3.1. ORGANISATIONAL CHART AND STRUCTURE .............................................................. 18

4. STUDY OF FUNCTIONAL DEPARTMENTS ......................................................................... 27

4.1. PRODUCTION DEPARTMENT ............................................................................................ 27

5. SWOT ANALYSIS .................................................................................................................... 54

SWOT ANALYSIS OF THE ORGANIZATION............................................................ 54

7. SUGGESTIONS AND RECOMMENDATIONS ...................................................................... 57

BIBLIOGRAPHY(IN APA STYLE) .............................................................................................. 59

1.2. MARKET SIZE

India is expected to be one of the largest contributors to non-OECD petroleum

by 2021 from 64 MMSCMD in 2015.

According to data released by the Department of Industrial Policy and Promotion

between April 2000 and March 2016.

and gas company BP Group.

Yara International ASA, a Norwegian chemical company, plans to acquire Tata

improved costing for catalyst recycling in the country.

Honeywell International Inc, the US-based technology and manufacturing solutions

oil and produce environmentally preferable diesel fuels.

20 billion in the port of Chabahar in Southeastern Iran.

Kolkata-based Dhunseri Petrochem Limited and Thailand's Indorama Ventures

5.07 billion) on a petrochemical complex at Paradeep in the state of Odisha, which is

expected to be commissioned by 2021.

Government of Andhra Pradesh, to set up a Liquefied Natural Gas (LNG)

regassification and floating storage terminal at Krishnapatnam Port in Nellore district

with an investment of around Rs 3,000 crore (US$ 447.34 million).

India's consumption of petroleum products which include domestic and industrial