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Learn more. | [Hide] [Help us with translations! ] | Indian Oil Corporation Indian Oil Corporation Limited| | Type| State-owned enterprise Public (BSE: 530965? )| Industry| Oil and Gas| Founded| 1964| Headquarters| New Delhi, India| Key people| Brij Mohan Bansal, Chairman| Products| Oil Petroleum Natural gas Petrochemical Fuel Lubricant| Revenue| ? $54. 287 billion (2009)| Net income| ^ $2. 258 billion (2009)| Total assets| ^ $29.
72 billion (2009)| Total equity| ^ $11. 686 billion (2009) | Employees| 36,307 (2009)| | | | | * Indian oil corporation Indian Oil, (BSE: 530965? ) is an Indian state-owned oil and gas company. It is India’s largest commercial enterprise, ranking 105th on the Fortune Global 500 list in 2009.
Indian Oil and its subsidiaries account for a 47% share in the petroleum products market, 40% share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian Oil Group of Companies owns and operates 10 of India’s 19 refineries with a combined refining capacity of 60. million metric tons per year.
Indian Oil operates the largest and the widest network of fuel stations in the country, numbering about 17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indene cooking gas to over 47.
5 million households through a network of 4,990 Indian distributors. In addition, Indian Oil’s Research and Development Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad.Subsequently, Indian Oil Technologies Limited – a wholly owned subsidiary, was set up in 2003, with a vision to market the technologies developed at Indian Oil’s Research and Development Center. It has been modeled on the R&D marketing arms of Royal Dutch Shell and British Petroleum. • * Products Indian Oil’s product range covers petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants, naphtha, bitumen, paraffin, kerosene etc. Extra Premium petrol, Extra Mile diesel, Servo lubricants, Indene LPG, Auto gas LPG, Indian Oil Aviation are some of its prominent brands.
Recently Indian Oil has also introduced a new business line of supplying LNG (liquefied natural gas) by cryogenic transportation. This is called “LNG at Doorstep”. LNG •Digboi Refinery, in Upper Assam, 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. Its original refining capacity had been 0. 5 MMTPA since 1901. Headquarters are located at the Scope Complex, Lodhi Road, Delhi.
Modernization project of this refinery has been completed and the refinery now has an increased capacity of 0. 65 MMTPA. Refineries •Guwahati Refinery, the first public sector refinery of the country, was built with Romanian collaboration and was inaugurated by Late Pt. Jawaharlal Nehru, the first Prime Minister of India, on 1 January 1962.
•Barauni Refinery, in Bihar, was built in collaboration with Russia and Romania. It was commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMTPA.
•Gujarat Refinery, at Koyali in Gujarat in Western India, is Indian Oil’s largest refinery. The refinery was commissioned in 1965. It also houses the first hydro cracking unit of the country.Its present capacity is 13. 70 MMTPA. •Haldia Refinery is the only coastal refinery of the Corporation, situated 136 km downstream of Kolkata in the Purba Medinipur (East Midnapore) district.
It was commissioned in 1975 with a capacity of 2. 5 MMTPA, which has since been increased to 5. 8 MMTPA •Mathura Refinery was commissioned in 1982 as the sixth refinery in the fold of Indian Oil and with an original capacity of 6.
0 MMTPA. Located strategically between the historic cities of Delhi and Agra, the capacity of Mathura refinery was increased to 7. 5 MMTPA. Panipat Refinery is the seventh refinery of Indian Oil. The original refinery with 6 MMTPA capacity was built and commissioned in 1998.
Panipat Refinery has doubled its refining capacity from 6 MMT/yr to 12 MMTPA with the commissioning of its Expansion Project. Subsidiary refineries — Bongaigaon Refinery (2. 95 MMTPA), Chennai Petroleum (9. 5 MMTPA) * Group companies and joint ventures •Indian Oil Technologies Ltd : Indian Oil Technologies Ltd. is the marketing arm of IOCL which markets the entire range of technologies developed at the Indian Oil R;amp;D Centre, Faridabad.Indian Oil Technologies Ltd. headquarters is located at the Indian Oil R;amp;D Centre. •Indian Oil (Mauritius) Ltd.
•Lanka IOC PLC – Group company for retail and storage operations in Sri Lanka. It is listed in the Colombo Stock Exchange. It was locked into a bitter subsidy payment dispute with Sri Lanka’s Government which has since been resolved.  •IOC Middle East FZE •Chennai Petroleum Corporation Limited •Bongaigoan Refinery and Petrochemicals Ltd.
•Green Gas Ltd. – a joint venture with Gas Authority of India Ltd. for city-wide gas distribution networks.
Indo Cat Pvt. Ltd. , with Intercat, USA, for manufacturing 15,000 tons per annum of FCC (fluidized catalytic cracking) catalysts & additives in India. •Numerous exploration and production ventures with Oil India Ltd. , Oil and Natural Gas Corporation * International rankings Indian Oil is the highest ranked Indian company in the Fortune Global 500 listing, the 116th position (in 2008) based on fiscal 2007 performance.
It is also the 18th largest petroleum company in the world and the number one petroleum trading company among the National Oil Companies in the Asia-Pacific region.IOCL was featured on the 2008 Forbes Global 2000 at position 303. * Loyalty programs XTRAPOWER Fleet Card Program is aimed at Large Fleet Operators. Currently it has 1 million customer bases. XTRAREWARDS is a recently launched loyalty program for retail customers where customers can earn reward points on their purchases. In the org * Competitors Indian Oil Corporation has two major domestic competitors, Bharat Petroleum and Hindustan Petroleum. Both are state-controlled, like Indian Oil Corporation. There are two private competitors, Reliance Petroleum and Essar Oil.
Concerns Indian Oil Corporation earned concerns about the state of affairs in its marketing business when Manjunath Shanmugam, a marketing manager and an MBA from the prestigious Indian Institute of Management Lucknow, was murdered in 2005 for sealing a corrupt petrol station in the state of Uttar Pradesh (U. P. ) The corporation’s Mathura Refinery unit has also remained constantly in news due to the threat of air pollution created by it. Oil Industry Development Board India has begun the development of a strategic crude oil reserve sized at 37.
million barrels, enough for two weeks of consumption.  Petroleum stocks have been transferred from the Indian Oil Corporation(Indian Oil) to the Oil Industry Development Board (OIDB).  The OIDB then created the Indian Strategic Petroleum Reserves Ltd (ISPRL) to serve as the controlling government agency for the strategic reserve. * Company History The Indian Oil Corporation Ltd. operates as the largest company in India in terms of turnover and is the only Indian company to rank in the Fortune “Global 500” listing.The oil concern is administratively controlled by India’s Ministry of Petroleum and Natural Gas, a government entity that owns just over 90 percent of the firm. Since 1959, this refining, marketing, and international trading company served the Indian state with the important task of reducing India’s dependence on foreign oil and thus conserving valuable foreign exchange.
That changed in April 2002, however, when the Indian government deregulated its petroleum industry and ended Indian Oil’s monopoly on crude oil imports.The firm owns and operates seven of the 17 refineries in India, controlling nearly 40 percent of the country’s refining capacity. * origins Indian Oil owes its origins to the Indian government’s conflicts with foreign-owned oil companies in the period immediately following India’s independence in 1947.
The leaders of the newly independent state found that much of the country’s oil industry was effectively in the hands of a private monopoly led by a combination of British-owned oil companies Burmah and Shell and U. S. companies Standard-Vacuum and Caltex.
An indigenous Indian industry barely existed.During the 1930s, a small number of Indian oil traders had managed to trade outside the international cartel. They imported motor spirit, diesel, and kerosene, mainly from the Soviet Union, at less than world market prices. Supplies were irregular, and they lacked marketing networks that could effectively compete with the multinationals. Burmah-Shell entered into price wars against these independents, causing protests in the national press, which demanded government-set minimum and maximum prices for kerosene–a basic cooking and lighting requirement for India’s people–and motor spirit.No action was taken, but some of the independents managed to survive until World War II, when they were taken over by the colonial government for wartime purposes. During the war, the supply of petroleum products in India was regulated by a committee in London. Within India, a committee under the chairmanship of the general manager of Burmah-Shell and composed of oil company representatives pooled the supply and worked out a set price.
Prices were regulated by the government, and the government coordinated the supply of oil in accordance with defence policy. * The Indian Oil Industry Evolves: Late 1940s-60sWartime rationing lasted until 1950, and a shortage of oil products continued until well after independence. The government’s 1948 Industrial Policy Resolution declared the oil industry to be an area of the economy that should be reserved for state ownership and control, stipulating that all new units should be government-owned unless specifically authorized. India remained effectively tied to a colonial supply system, however.
Oil could only be afforded if imported from a country in the sterling area rather than from countries where it had to be paid for in dollars.In 1949, India asked the oil companies of Britain and the United States to offer advice on a refinery project to make the country more self-sufficient in oil. The joint technical committee advised against the project and said it could only be run at a considerable loss. The oil companies were prepared to consider building two refineries, but only if these refineries were allowed to sell products at a price ten percent above world parity price. The government refused, but within two years an event in the Persian Gulf caused the companies to change their minds and build the refineries.
The companies had lost their huge refinery at Abadan in Iran to Prime Minister Mussadegh’s nationalization decree and were unable to supply India’s petroleum needs from a sterling-area country. With the severe foreign exchange problems created, the foreign companies feared new Iranian competition within India. Even more important, the government began to discuss setting up a refinery by itself. Between 1954 and 1957, two refineries were built by Burmah-Shell and Standard-Vacuum at Bombay, and another was built at Vizagapatnam by Caltex.
During the same period the companies found themselves in increasing conflict with the government.The government came into disagreement with Burmah Oil over the Nahorkatiya oil field shortly after its discovery in 1953. It refused Burmah the right to refine or market this oil and insisted on joint ownership in crude production. Burmah then temporarily suspended all exploration activities in India. Shortly afterward, the government accused the companies of charging excessive prices for importing oil. The companies also refused to refine Soviet oil that the government had secured on very favorable terms. The government was impatient with the companies’ reluctance to expand refining capacity or train sufficient Indian personnel.
In 1958, the government formed its own refinery company, Indian Refineries Ltd. With Soviet and Romanian assistance, the company was able to build its own refineries at Noonmati, Barauni, and Koyali. Foreign companies were told that they would not be allowed to build any new refineries unless they agreed to a majority shareholding by the Indian government. In 1959, the Indian Oil Company was founded as a statutory body. At first, its objective was to supply oil products to Indian state enterprise. Then it was made responsible for the sale of the products of state refineries.After a 1961 price war with the foreign companies, it emerged as the nation’s major marketing body for the export and import of oil and gas.
Growing Soviet imports led the foreign companies to respond with a price war in August 1961. At this time, Indian Oil had no retail outlets and could sell only to bulk consumers. The oil companies undercut Indian Oil’s prices and left it with storage problems. Indian Oil then offered even lower prices. The foreign companies were the ultimate losers because the government was persuaded that a policy of allowing Indian Oil dominance in the market was orrect. This policy allowed Indian Oil the market share of the output of all refineries that were partly or wholly owned by the government. Foreign oil companies would only be allowed such market share as equaled their share of refinery capacity. * Indian Oil Corporation: 1964 to the 1990s In September 1964, Indian Refineries Ltd.
and the Indian Oil Company were merged to form the Indian Oil Corporation. The government announced that all future refinery partnerships would be required to sell their products through Indian Oil.It was widely expected that Indian Oil and India’s Oil and Natural Gas Commission (ONGC) would eventually be merged into a single state monopoly company. Both companies grew vastly in size and sales volume but, despite close links, they remained separate.
ONGC retained control of most of the country’s exploration and production capacity. Indian Oil remained responsible for refining and marketing. During this same decade, India found that rapid industrialization meant a large fuel bill, which was a steady drain on foreign exchange.
To meet the crisis, the government prohibited imported petroleum and petroleum product imports by private companies. In effect, Indian Oil was given a monopoly on oil imports. A policy of state control was reinforced by India’s closer economic and political links with the Soviet Union and its isolation from the mainstream of western multinational capitalism. Although India identified its international political stance as non-aligned, the government became increasingly friendly with the Soviet Bloc, because the United States and China were seen as too closely linked to India’s major rival, Pakistan.India and the USSR entered into a number of trade deals. One of the most important of these trade pacts allowed Indian Oil to import oil from the USSR and Romania at prices lower than those prevailing in world markets and to pay in local currency, rather than dollars or other convertible currencies. For a time, no more foreign refineries were allowed. By the mid-1960s, government policy was modified to allow expansions of foreign-owned refinery capacity.
The Indian Oil Corporation worked out barter agreements with major oil companies in order to facilitate distribution of refinery products.In the 1970s, the Oil and Natural Gas Commission of India, with the help of Soviet and other foreign companies, made several important new finds off the west coast of India, but this increased domestic supply was unable to keep up with demand. When international prices rose steeply after the 1973 Arab oil boycott, India’s foreign exchange problems mounted. Indian Oil’s role as the country’s monopoly buyer gave the company an increasingly important role in the economy. While the Soviet Union continued to be an important supplier, Indian Oil also bought Saudi, Iraqi, Kuwaiti, and United Arab Emirate oil.India became the largest single purchaser of crude on the Dubai spot market. The government decided to nationalize the country’s remaining refineries.
The Burmah-Shell refinery at Bombay and the Caltex refinery at Vizagapatnam were taken over in 1976. The Burmah-Shell refinery became the main asset of a new state company, Bharat Petroleum Ltd. Caltex Oil Refining (India) Ltd. was amalgamated with another state company, Hindustan Petroleum Corporation Ltd.
, in March 1978. Hindustan had become fully Indian-owned on October 1, 1976, when Esso’s 26 percent share was bought out.On October 14, 1981, Burmah Oil’s remaining interests in the Assam Oil Company were nationalized, and Indian Oil took over its refining and marketing activities. Half of India’s 12 refineries belonged to Indian Oil.
The other half belonged to other state-owned companies. By the end of the 1980s, India’s oil consumption continued to grow at eight percent per year, and Indian Oil expanded its capacity to about 150 million barrels of crude per annum. In 1989, Indian Oil announced plans to build a new refinery at Pradip and modernize the Digboi refinery, India’s oldest.
However, the government’s Public Investment Board refused to approve a 120,000 barrels-per-day refinery at Daitari in Orissa because it feared future over-capacity. By the early 1990s, Indian Oil refined, produced, and transported petroleum products throughout India. Indian Oil produced crude oil, base oil, formula products, lubricants, greases, and other petroleum products. It was organized into three divisions. The refineries and pipelines division had six refineries, located at Gwahati, Barauni, Gujarat, Haldia, Mathura, and Digboi. Together, the six represented 45 percent of the country’s refining capacity.The division also laid and managed oil pipelines.
The marketing division was responsible for storage and distribution and controlled about 60 percent of the total oil industry sales. The Assam Oil division controlled the marketing and distribution activities of the formerly British-owned company. Indian Oil also established its own research centre at Faridabad near New Delhi for testing lubricants and other petroleum products. It developed lubricants under the brand names Servo and Servo prime. The centre also designed fuel-efficient equipment. Changes in the Oil Industry: Late 1990s and Beyond The oil industry in India changed dramatically throughout the 1990s and into the new millennium. Reform in the downstream hydrocarbon sector–the sector in which Indian Oil was the market leader–began as early in 1991 and continued throughout the decade. In 1997, the government announced that the Administered Pricing Mechanism (APM) would be dismantled by 2002.
To prepare for the increased competition that deregulation would bring, Indian Oil added a seventh refinery to its holdings in 1998 when the Panipat facility was commissioned.The company also looked to strengthen its industry position by forming joint ventures. In 1993, the firm teamed up with Ballmer Laurie & Co.
and NYCO SA of France to create Avi-Oil India Ltd. , a manufacturer of oil products used by defence and civil aviation firms. One year later, Indo Mobil Ltd.
was formed in a 50-50 joint venture with Exxon Mobil. The new company imported and blended Mobil brand lubricants for marketing in India, Nepal, and Bhutan. In addition, Indian Oil was involved in the formation of ten major ventures from 1996 through 2000.Indian Oil also entered the public arena as the government divested nearly 10 percent of the company. In 2000, Indian Oil and ONGC traded a 10 percent equity stake in each other in a strategic alliance that would better position the two after the APM dismantling, which was scheduled for 2002. According to a 1999 Hindu article, Indian Oil Corporation’s strategy at this time was “to become a diversified, integrated global energy corporation.
” The article went on to claim that “while maintaining its leadership in oil refining, marketing and pipeline transportation, it aims for higher growth through integration and diversification.For this, it is harnessing new business opportunities in petrochemicals, power, lube marketing, exploration and production ..
. and fuel management in this country and abroad. ” In early 2002, Indian Oil acquired IBP, a state-owned petroleum marketing company. The firm also purchased a 26 percent stake in financially troubled Haldia Petrochemicals Ltd. In April of that year, Indian Oil’s monopoly over crude imports ended as deregulation of the petroleum industry went into effect. As a result, the company faced increased competition from large international firms as well as new domestic entrants to the market.During the first 45 days of deregulation, Indian Oil lost Rs7. 25 billion, a signal that the India’s largest oil refiner would indeed face challenges as a result of the changes.
Nevertheless, Indian Oil management believed that the deregulation would bring lucrative opportunities to the company and would eventually allow it to become one of the top 100 companies on the Fortune 500–in 2001 the company was ranked 209. With demand for petroleum products in India projected to grow from 148 million metric tons in 2006 to 368 million metric tons by 2025, Indian Oil believed it was well positioned for future growth and prosperity.Principal Subsidiaries: Indo Mobil Ltd. (50%); Avi-Oil Ltd. (25%); Indian Oil tanking Ltd. (25%); Petro net to India Ltd. (16%); Petro net VK Ltd.
(26%); Petro net CTM Ltd. (26%); Petro net CIPL Ltd. (12. 5%); Indian Oil PETRONAS Ltd. (50%); Indian Oil Panipat Power Consortium Ltd.
(26%); Indian Oil TCG Petrochem Ltd. (50%); Lubrizol India Pvt. Ltd. (50%). Principal Competitors: Bharat Petroleum Corporation Ltd. ; Hindustan Petroleum Corporation Ltd. ; Royal Dutch/Shell Group of Companies Key Dates: 1948: India’s government passes the Industrial Policy Resolution, which states that its oil industry should be state-owned and operated. 958: The government forms its own refinery company, Indian Refineries Ltd.
1959: Indian Oil Company is founded as a statutory body to supply oil products to Indian state enterprise. 1964: Indian Refineries and Indian Oil Company merge to form the Indian Oil Corporation. 1998: The company’s seventh refinery is commissioned at Panipat. 2002: The Indian petroleum industry is deregulated * Board of directors Name| Designation| Brij Mohan Bansal| Chairman / Chair Person| Vishan Chandra Agrawal| Director| Basavaraj Ningappa Bankapur| Director| Indira J. Parikh| Director| Indu Shahani| Director|Michael Bastian| Director| K K Jha| Director| Name| Designation| Serangulam Varadarajan Narasimhan| Director| Gyan Chand Daga| Director| Pradeep Kumar Sinha| Director| Knees Noorani| Director| Gautam Barua| Director| Nirmal Kumar Poddar| Director| Sudhir Bhargava| Director| * Indian oil industry on fire jaipur2009 The Jaipur oil depot fire broke out on October 29, 2009 at 7:30 PM (IST) at the Indian Oil Corporation (IOC) oil depot’s giant tank holding 8,000 kilolitres of oil, in Sitapura Industrial Area on the outskirts of Jaipur, Rajasthan, killing 12 people and injuring over 200.The blaze continued to rage out of control for over a week after it started and during the period half a million people were evacuated from the area.
The oil depot is about 16 kilometers (10 miles) south of the city of Jaipur The incident occurred when petrol was being transferred from the Indian Oil Corporation’s oil depot to a pipeline. There were at least 40 IOC employees at the terminal, situated close to the Sanganer Airport (Jaipur Airport) when it caught fire with an explosion. The Met department recorded a tremor measuring 2. 3 on the Richter scale around the time the first explosion at 7.
6 pm which resulted in shattering of glass window nearly 3 km from the accident site. The fire was a major disaster in terms of deaths, injury, loss of business, property ;amp; man-days, displacement of people, environmental impact in Jaipur, the capital city of the Indian state of Rajasthan and a popular tourist destination. As per eyewitnesses having factories and hotels around Indian Oil’s Sitapura (Jaipur) Oil Terminal they felt presence of petrol vapour in the atmosphere around 4:00 p. m. on 29 October 2009. Within next few hours the concentration of petrol vapour had intensified making it difficult to breathe.
The Ayush Hotel in the vicinity of the terminal had asked all its guests to vacate the Hotel to avert any tragedy. The police, civil administration and fire emergency services were oblivious of the situation developing in Indian Oil Terminal. Around half past six the staff in the terminal having failed to contain the leak and flow of petrol panicked and reported the matter to nearby Sanganer Sadar Police Station. Within next half an hour the local police chief and District Collector were on the spot along with Indian Oil General Manager, but with no plan to deal with the situation.The nearby industries, which were running second shifts, were cautioned to vacate the area. At 7:35 p.
m. a huge ball of fire with loud explosion broke out engulfing the leaking petrol tank and other nearby petrol tanks with continuous fire with flames rising 30–35 meters and visible from 30 km radius. The traffic on adjacent National Highway No. 12 was stopped leading to 20 kilometres long traffic jam. The Jaipur (Sanganer) Airport is just 5 Kms away from the accident site.
Both the Army and experts from Mumbai were employed on the 30th to contain the fire, which started when an oil tanker caught fire at the depot in the Sitapura Industrial Area. The district administration disconnected electricity and evacuated nearby areas to limit the damage. The fire still raged on on the 31st, in the Indian Oil Corporation Depot, at Jaipur, after a defective pipe line leak that set fire to 50,000 Kilolitres of diesel and petrol out of the storage tanks at the IOC Depot.
By then, the accident had already claimed 11 lives and seriously injured more than 150.Army and Fire Brigades continued to work relentlessly to douse the fires. The 70 feet tall flames spread in the area of 2-3 Kilometers spreading the destruction with it.
The District Administration and Indian Oil Corporation had no disaster management plan to deal with this kind of calamity. The local fire officers were ill equipped to deal with fire accidents of this magnitude. They remained onlookers and no efforts were made to breach the terminal wall to get closer to kerosene and diesel tanks to cool them with water jets.
* Inventory The following products were stored in eleven tanks inside the terminal: Petrol (18,810 Kl)Kerosene (2,099 Kl) High Speed Diesel (39,966 Kl) Interface (2809 Kl) * Aftermath About 11 people lost their lives due to burns and asphyxia and more than 300 suffered injuries. Many of the dead were the employees of Indian Oil Corporation. * Disaster Management Plan THE DISASTER MANAGEMENT ACT, 2005 envisages that each revenue District must have a Disaster Management Plan. While 31 revenue Districts of Rajasthan had placed the Disaster Management Plan on Rajasthan Government website Jaipur District did not have any Disaster Management Plan. A Disaster Management Plan for Jaipur District has been put on Internet on 17 November 2009 i. . 20 days after the accident took place on 29 October 2009.
In the meanwhile Jaipur suffered two more disasters when Swine Flu infected a number of school children prompting Government to order closure of schools, and derailment of a Train Mandore Express killing six persons and injuring more than 50 persons. * Rajasthan State Pollution Control Board report A Legal Notice has been issued to Indian Oil Corporation for violating THE WATER (PREVENTION AND CONTROL OF POLLUTION) ACT 1974, THE AIR (PREVENTION AND CONTROL OF POLLUTION) ACT, 1981, and THE ENVIRONMENT (PROTECTION) ACT, 1986.Air pollution across jaipur was way above maximum permitted limits when the Indian oil corporation (IOC) depot on the edge of the city was caught fire.
It significant effect on the air in Delhi and Agra, the central pollution control board (CPCB) reported. Almost 60000 kiloliters of oil in 11 storage tank went up in flames on the evening of oct29 and blaze raged till. Made by: CHINMAY JARIWALA GRADE: 12THCOMERCE SCHOOL: P. P.
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