CSR POLICY-ONGC

A BRIEF OF THE COMPANY

ONGC is the largest producer of crude oil and natural gas in India, contributing around 70 per
cent of Indian domestic production. The crude oil is the raw material used by downstream
companies like IOC, BPCL and HPCL to produce petroleum products like Petrol, Diesel,
Kerosene, Naphtha and Cooking Gas-LPG

ONGC is Indias Top Energy Company and ranks 17th among global energy majors (Platts). It
is the only Indian company to figure in Fortunes Most Admired Energy Companies list. It
ranks 17th in Oil and Gas operations and 220th overall in Forbes Global 2000. Acclaimed for
its Corporate Governance practices, Transparency International has ranked ONGC 26th among
the biggest publicly traded global giants.

ONGC has a unique distinction of being a company with in-house service capabilities in all areas
of Exploration and Production of oil & gas and related oil-field services. Winner of the Best
Employer award, a dedicated team of over 33,500 professionals toil round the clock in
challenging locations.

THE IMPORTANCE OF CSR ACTIVITIES TO THE ORGANISATION (ONGC)

As a public sector enterprise, ONGC has a long and cherished tradition of commendable
initiatives, institutionalized programs and practices of Corporate Social Responsibility which
have played a laudable role in the development of several underdeveloped regions of the country.
The vision of sustainable growth drives both business decisions as well as our Corporate Social
Responsibility works. Our CSR activities are essentially guided by project based approach in line
with the guidelines issued by the Department of Public Enterprises and Ministry of Corporate
Affairs of the Government of India. The CSR initiatives of ONGC were marked by unrelenting
commitment to several large scale key projects as well as initiation of several new projects
identified under the 12 focus areas of ONGC i.e.

1. Education including vocational courses, Health Care, Entrepreneurship (self-help & livelihood
generation) schemes,

2. Infrastructure support near ONGC operational areas,

3. Environment protection, ecological conservation,

4. Protection of heritage sites, UNESCO heritage monuments etc.

5. Promotion of artisans, craftsman, musicians, artists etc. for preservation of heritage,

6. Art & Culture, Womens Empowerment,

7. Girl Child Development, Gender sensitive projects,

8. Water Management including ground water recharge,

9. Initiatives for physically and mentally challenged,

10. Sponsorship of seminars, conferences, workshops etc.

11. Promoting Sports/sports persons; supporting agencies promoting sports / sports persons.

CSR POLICIES USED BY THE ORGANISATION

ONGC, in its quest for oil and gas, charters remote rural locations and is in a constant interface
with underprivileged local communities which results in better understanding of the community
and consequently an enhanced sense of responsibility and accountability to the communities. A
well-defined set of objectives, clearly delineated beneficiaries, strategy and project activities
characterize CSR projects undertaken to yield discernible, long-term, sustainable benefits for the
communities in question.

The CSR initiatives classified by Kotler and Lee are observed and compared to the CSR policies
that are considered by ONGC. The policies are listed as follows:

1. Type of CSR activity Cause Promotions

Description Resources spent by companies to promote a specific cause that benefits society in
many levels such as eliminating poverty or fighting against child abuse

ONGC-NSTFDC Hathkargha Prashikshan: The CSR project was aimed at economically

empowering the women tribal handloom artisans in Assam to facilitate cluster development for
economically marginalized tribal populations. In 2011-12, around 100 tribal handloom artisans
were provided on-the-job training in the improvised looms by master craftsmen that included
training in intricate designs for catering to wider markets.

2. Type of CSR activity - Corporate Philanthropy

Description This form of CSR involves businesses donating money or products of the
company in substantial amounts in order to support specific causes.

2.1. Harit Moksha: This unique CSR venture with MokshdaParyavaranEvam Van
SurakshaSamiti (Mokshda PEVSS) has led to the development of an energy-efficient and
environment friendly wood based crematorium with a system called Mokshda Green Cremation
System (MGCS) which is capable of reducing wood consumption by 60% besides minimizing
air and water pollution in a significant manner. Now, there are 10 such MGCS units across the
cities of Vadodara, Cambay, Ahmedabad and Delhi.
2.2. ONGC-GICEIT Computer Centre: Under this initiative, implementing partner
BharatiyaVidyaBhavan operates five computer centres providing employment-related computer
training to underprivileged youth across different operational areas of ONGC. In 2011-12, more
than 1400 students have received free employability training through these centres.

3. Type of CSR activity - Corporate Social Marketing

Description Businesses promoting social causes such as healthy eating, caring about parents,
quit smoking etc.

3.1. Varisthajana Swasthya Sewa Abhiyan: ONGC along with HelpAge India continues its
efforts to take healthcare to the doorsteps of the elderly through Mobile Medicare Units. In 2011-
12, all the 20 MMUs were launched and almost 1.9 lakh treatments were provided across the
eight States and one Union Territory.

3.2. ONGC-Eastern Swamp Deer Conservation Project in Kaziranga National Park: The
project aims at successfully conserving the species of the Eastern Swamp Deer. Understanding
the species and the habitat, developing stringent conservation action initiatives that could prevent
extinction and examining the possibility of translocation of the species to additional areas to
conserve species and habitat include the important project activities.