CORPORATE SOCIAL RESPONSIBILITY:

-The OIL Way

Tridiv Hazarika
Tridiv Hazarika is a post graduate in Mass Communication. Joined Oil India Limited as Public Relations Officer in 1998. He
is presently the editor of OIL News the house magazine of OIL and looks after various assignments pertaining to OIL’s
Corporate Communications, Corporate Social Responsibility and Public Grievance Management. A life member of the
Public Relations Society of India; Associate Member of National Institute of Personal Management, Corporate Member of
Centre for Social Responsibility.

Corporate Social Responsibility – Some Perspectives

Corporate Social Responsibility means different things to different people. One end of the
spectrum is compliance with laws and other is being philanthropic. Another way of looking at it is
who benefits – The beneficiaries range from employees to suppliers to customers to the amorphous
entity called ‘Community’. Complying with the law is the basic minimum to legitimately stay in
business.

Recent years have witnessed the spread of global business, with multinational corporations
extending their activities into developing countries. In contrast, there has been an increase in the
number of poor in the world, with almost 3 billion people surviving on an income of less than 2 US
dollars a day. This presents both a threat and an opportunity for business.

As recognized by the WBCSD (World Business Council for Sustainable Development), “Business
cannot succeed in societies that fail”. Recent demands for greater corporate social responsibility
and protests against globalization and large corporate organizations only reflect the fact that
social stability, and hence poverty alleviation, is essential to reap the returns from business
investments. At the same time, the large numbers of poor represents a unique and hitherto
unexplored opportunity for business that have focused mostly on producing goods and services
that meet the needs of the poor would help enhance their productivity and hence, income. This
implies not only expansion of the existing market, but also the creation of new markets and
growth in profits.

CSR is as much about not polluting and being concerned about people being displaced when an
industrial unit is set up beyond legal compliance as it is about supporting health or education
programme. Today, CSR reiterates the notion that development is not the exclusive responsibility
of the government. Business, too, has a legitimate and responsible role to play.

Corporate Houses have also laid great emphasis on respecting the entire development process.
This means being participative, not prescriptive, creating independent rather than dependent
communities and focusing on the excluded and the powerless.

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Today people expect a lot more transparency both from the government as well from other public
organizations. ‘Right to information’ has come to be accepted as a natural right. All Public
organizations are like the proverbial glass houses. All their policies, plans and programmes are
constantly under public scrutiny and it is the role of PR professionals to ensure that the legitimate
information requirements are fully made available. For any breakdown in this two-way process
can lead to loss of goodwill and image.

The legacy of the Indian oil industry and OIL

The story of oil exploration in Indian shores starts at the beginning of the 19th century in the
steamy jungles of Upper Assam. It recounts the valiant efforts of individuals and organizations to
find oil under conditions of extreme physical hardship. Soon after Edwin L Drake drilled the
world’s first oil well in 1859 at Titusville, Pennsylvania, USA, the efforts of the pioneering oilmen
climaxed in the discovery of the Digboi oil Field in 1889, which passed into the hands of the
Burmah Oil Company Ltd. (BOC) in 1921 and to Oil India Ltd (OIL) in 1981.

Oil India Private Ltd. was incorporated on February 18, 1959 for the purpose of development and
production of the discovered prospects of Nahorkatiya and Moran and to increase the pace of
exploration in the Northeast India. It was registered as a Rupee Company with two-third shares
owned by AOC / BOC and one-third by the Government of India (GOI). By a subsequent agreement
on 27th July, 1961, GOI and BOC transformed OIL to a Joint Venture Company (JVC) with equal
partnership.

OIL remained a Joint Venture Company for over two decades. The atmosphere of tolerance and
adjustment between the partners was such that once Late Mrs. Indira Gandhi, Prime Minister of
India remarked: “OIL is a fine example of the co-operation between the Public and Private Sectors.”

On 14th October 1981 Oil India Limited (OIL) became a wholly owned Government of India enterprise
by taking over BOC’s 50% equity and the management of Digboi oilfields changed hands from the
erstwhile AOC to OIL. A premier National oil company, OIL today is engaged in the business of
Exploration, Production and Transportation of Crude Oil and Natural Gas from defined concessional
areas in Upper Assam and Arunachal Pradesh and parts of eastern, northern and western India.

The Company is a “Schedule A” company under the Ministry of Petroleum and Natural Gas,
Government of India. Although her entry into the public sector is just couple of years away from
a silver jubilee celebration, the roots of her experience stretch back through antecedent Companies
to the beginning of the last century. In the bloodstream of OIL runs the courage and daring and
professional integrity of the early pioneers. OIL is conscious of the tremendous responsibility
thrust upon them by an oil-starved nation. If the company’s past is any index, she can be trusted
to give her best in not only fulfilling this responsibility in the future but also living up to the
expectations of the poor, underprivileged and needy people residing in the company’s operational
areas.
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The authorized and paid up capital of the company as on 31st March 2005 are Rs.2500 Million (
USD 50 Million) and Rs. 2140 Million ( USD 42.8 Million) respectively with 98.13% holding by the
Government of India and 1.87 % by the employees and others. The net worth of the company as
on 31st March 2005 is Rs 47110 Million (USD 942.20 Million) Oil India Limited registered an all-
time high net profit of Rs. 10610 Million (USD212.2 Million) against a total income of Rs 40970
Million (USD 819.40 Million).

OIL is having over 100,000 Sq. Km. of PEL/ML areas for its exploration & production activities.
Majority of OIL’s activities is being taken up in the North East from where it’s entire crude oil
production and majority of gas production is coming. Rajasthan is the other producing area of OIL
from where it is producing 10% of its total gas production. The Company’s exploration activities
are spread over offshore areas of Saurashtra, onshore areas of Ganga Valley & Mahanadi in
addition to its onshore areas in North East and Rajasthan. OIL also has participation interest in
NELP exploration blocks in Mahanadi Offshore, Mumbai deep water, Krishna Godavari deep
water etc in partnership.

Oil India has identified acquisition of overseas exploration and production ventures as an essential
requirement for fast growth. The Company already has participating interests in various overseas
projects, such as, in Iran, Cote d’lvoire, and Sudan. It has recently formed a 50:50 strategic
alliance with Indian Oil Corporation Limited (IOC) to jointly pursue exploration and production
opportunities abroad and to achieve synergy in the downstream sector. This consortium has
achieved a major breakthrough in its maiden attempt by winning two Blocks in the highly prospective
Sirte Basin in Libya with Oil India as operator, against competitive bidding.

In recent years, OIL has stepped up E & P activities significantly including Gas monetization in
the North-East India. After entering into an agreement to supply gas to Numaligarh Refinery Ltd.,
OIL has already undertaken steps to transport gas to Guwahati city from its fields in Upper
Assam. OIL has set-up the NEF (North East Frontier) project to intensify its exploration activities
in the frontier areas in North East which are logistically very difficult and geologically complex.
Presently, seismic surveys are being carried out in Manabhum, Pasighat and other Trust Belt
areas. Moreover, seismic survey is also planned in river Brahmaputra and its adjoining areas
which is a very challenging job.

The Company operates a crude oil pipeline in the North East for transportation of crude oil
produced by both OIL and ONGCL in the region to feed Numaligarh, Guwahati, Bongaigaon and
Barauni refineries and a branch line to feed Digboi refinery. The Company is currently in the
process of constructing a 660 KM long Product Pipeline from Numaligarh to Siliguri. The Pipeline,
when commissioned in early 2006, is expected to solve the product evacuation problem of the
modern and state-of-the-art Numaligarh Refinery. OIL also sells its produced gas to different
customers in Assam viz. BVFCL, ASEB, NEEPCO, IOC (AOD), and APL and to RSEB in
Rajasthan. The company also produces Liquefied Gas (LPG) in its plant at Duliajan, Assam.

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After restructuring into Strategic Business Units, OIL has also ventured into offering rig package,
expertise and services in E & P sector and signed a contract with Premier Oil, a company
registered in Netherlands, for drilling of a well in their Jaipur block in Assam. OIL has also carried
out Work-Over jobs for Great Eastern Energy Corporation Limited’s Coal Bed Methane wells.

In a recent CRISIL-India Today survey, OIL was earmarked as one of the five best major PSU and
one of three best energy sector PSU in the country.

OIL’s guiding philosophies of a Good Corporate Citizen

The activity profile of an upstream oil company, which is primarily the two forefront tasks of
exploration and production of hydrocarbons makes such an industry highly people centric. This
is because unlike manufacturing industries, upstream oil companies cannot operate within
fixed and enclosed areas. Its activities are not focused on one central location alone but
spread into fur flung interior areas, where the employees have to negotiate with both the operational
challenges and establishing a relationship of mutual trust and co-operation with the “apprehensive
local populace.”

With a century old legacy, Oil India Limited, a premier national oil company has evolved as a
“people’s company” by being actively involved in the overall development of the people residing in
and around the company’s operational areas, especially in Assam and Arunachal Pradesh.

But unlike other companies, the greatest challenge for Oil India Limited is that it has to operate
in a region best known as a cauldron of ethnic strife and countless groups of separatist and
subversive outfits; a region plagued senseless violence, corruption, lack of infrastructure and
political volatility.

Changing Times: The turbulent 80’s

The early years of 1980’s was one of the most challenging for OIL since it got caught in the
Assam agitation. OIL was used as a tool by the people to voice their grievances against the
Central Government. The agitation movement also gave birth to the All Assam Students Union –
one of the most prominent and pressure group of the region. The AASU also used OIL – which
was perceived as a property of the local people - to fight the long drawn agitation. These
developments had a far reaching impact on the Company’s CSR policies and strategies. These
socio-political undercurrents created a demand driven (from public) CSR policy.

Oil India limited recognizes the need for maintaining a cordial relationship with the residents of its
operational areas. Despite overwhelming concern to find more oil, OIL has always given top
priority towards the upliftment of the less privileged sections of the society in which it operates. It
is this twin objective of business and social commitment that has prompted OIL to embark

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upon massive programmes of educational, medical and infrastructural development
endeavors; an attempt to invest technology with a human face. There is a need to strike
a balance between the overall objectives of achieving corporate excellence vis-à-vis
the corporate responsibility towards the community. The Company earmarks a minimum of
.75% of its net profit for CSR initiatives.

Today, managing the turbulent environment has become one of the biggest challenges of OIL,
especially since the Company has to excel in the new competitive economic scenario of Market
Driven Pricing Mechanism (MDPM). On one hand, there is the clarion call for cutting down
overhead costs, bringing down and optimizing operational expenditure to counter the cut-throat
competition. While on the other hand, all efforts are directed at enhancing productivity and financial
prudence is dependent to a large extent on the ability to overcome a number of logistic and
infrastructural difficulties. And most abundantly, the greater challenge of negotiating the external
environment by generating favourable public opinion towards the company. This is only
possible by winning the trust and faith of the local people through tangible community
welfare endeavours.

Therefore the predicament is in striking a balance between company’s long-term interests and
meeting the growing and unending expectations of the people.

In Oil India, the idea of a collective initiative for rural development work was first mooted in 1962
to promote good practices in corporate citizenship and sustainable development. OIL had
recognized that companies such as itself have crucial role to play in rural development when it
took up this challenge four decades ago. It has today an established rural development network
in its operational areas whose main objective is self-sufficiency. Today, in the states of Assam
and Arunachal Pradesh alone the company caters to the developmental needs of more then 1400
villages, connecting them to the mainland and providing realistic opportunities to strive for a
fulfilling future.

OIL conducts a Social Survey

OIL conducted a social survey through Dibrugarh University in the year 1983 (in its operational
areas in the North-East) to evolve a CSR Strategy. Based on the recommendation of the survey,
the Company introduced a scheme entitled Social Welfare Programme (SWP) in 1984 and later
on another scheme called Areas Development Scheme (ADS) in 1996.

Social Welfare Programme (SWP)

This policy places OIL’s commitment of protecting the environment, upliftment of education,
Health and socio-economic Development a topmost priority. All-round development of education,
rural infrastructure, primary health care, environment protection, promotion of sports/sportsperson

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(especially rural sports), assistance to youth and women organizations in carrying out community
development activities are some of the key areas covered under SWP.

Area Development Scheme (ADS)

Area Development Scheme was introduced in 1996 with the objective of supporting the various
socio-cultural activities in the operational areas. The Scheme covers the construction of roads,
setting up of educational institutions and primary health centres in the North East Region and
other operational areas of the company.

Corporate Social Responsibility and Good Governance – facilitating

sustainable development
Corporate Social Responsibility as already stated means different things to different people. One
end of the spectrum is compliance with laws and other is being philanthropic. Another way of
looking at it is who benefits – The beneficiaries range from employees to suppliers to customers
to the amorphous entity called ‘Community’. Complying with the law is the basic minimum to
legitimately stay in business. For OIL, CSR is going beyond those to whom we have our obligation
like employees and the shareholders to focusing on the most disadvantaged in society. Today,
CSR reiterates the notion that development is not the exclusive responsibility of the government.
Business, too, has a legitimate and responsible role to play. Corporate Houses have also laid
great emphasis on respecting the entire development process.

Corporate Social Responsibility (CSR) has found widespread acceptance in the West. In India,
however, acceptance levels are not so high despite changing mindsets. Traditionally, the belief
was that the role of the company towards development was to write out cheques. We have tried
hard to show that this is not necessary, that there are many resources which the company has
and are relevant to development.

Shankar Venkateswaran in his book, ‘The business of social responsibility’ wrote: Islands of
prosperity cannot survive in a sea of poverty – the sea will ultimately engulf the islands. Society’s
expectations from business are increasing and therefore, being socially responsible provides
certain advantages. In all likelihood OIL’s operational areas in future will witness a greater degree
of social disharmony. The reason for this is that while aspirations will become uniform, the
disparities in purchasing powers will persist. This makes it essential for OIL to actively support
government initiative in socio-economic development aimed at reducing disparities.

Oil India Limited firmly believes that “Islands of Prosperity cannot survive in a Sea of Poverty.”
Therefore unless Companies gives back to the land and people from which it has taken so much,
unless it looks beyond business and enables the disadvantaged communities to fend for
themselves, act as a catalyst of socio-economic development issues like growing poverty,

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unemployment, lop-sided development would continue to haunt Companies. Global industrial
history and statistics prove that the Companies which survived the test of times are those which
never compromised on issues of ethics and ‘Corporate Social Responsibility”. For Oil India Limited
socio-economic development of the residents of its operational areas is not merely a policy
statement but an integral part of the Company’s corporate philosophy and culture- enabling OIL
to sustain its image as a ‘people’s company’ in the true spirit of the words.

OIL conducts a Social Audit (2004) of its CSR initiative

OIL engaged M/s Enterprise Group, New Delhi, a professional agency to carry out a social audit
of the Company’s CSR projects/initiatives to assess the impact and public perception of the
same. The Community Audit which was one of the first of its kind to be conducted in OIL has
provided significant insights to OIL management for preparing a comprehensive policy on the
Company’s Corporate Social Responsibility. The following are some of the key findings of the
audit:

Community responses to initiatives

• Mobile dispensary program ranks as one of the most ‘useful’ OIL initiatives.

• Self Help Group (SHG) schemes of OIL and SIRD (State Institute of Rural Development) the
current ‘favourite’

• Schools, colleges or cultural centers draw high community involvement

Peoples’ perceptions

• Without OIL there would have been no development work

• OIL contributes largely to the prosperity of the region

• Historically, OIL yielded to public agitations and ‘bandhs’ as a price to ensure uninterrupted
production from its oil/gas fields

• “Agitations pay, and ‘bandhs’ pay splendidly”- key lesson drawn by prospective beneficiaries
of OIL as means to achieving their objectives

OIL’s CSR initiatives based on the Social Audit report

• Mobile Dispensary Services to be extended to newer areas and the frequency to be increased

• OIL-SIRD (Project Rupantar) project given top priority

• More proactive dialogue with the target beneficiaries for need identification and prioritization

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 • Sharing of information with the people on matters like CSR budget allocation/resource
mobilization/operational constraints etc

Project Rupantar
The twin problems of growing unemployment and poverty have posed a serious threat to OIL’s
long term business goals. This is because OIL is one of the only industries in this part of the
country, which is catering to the socio-economic needs of the residents of its operational areas.
More and more unemployed youths look at OIL as the only possible source of direct recruitment.
With over 1400 villages under its extended operational areas, it is becoming increasingly difficult
for OIL to cope up with the expectations of the people, which in turn have led to creation of
successive generations of disgruntled and frustrated youth. In order to address this problem, the
Company has undertaken a long-term project named Rupantar (transformation) of investing in
projects, which can help the unemployed youths to find alternate source of employment. The
project (worth USD 3 Million) aims to create self employment avenues and promote
entrepreneurship in the region and generate sustainable sources of livelihood.

Project Objective
Successful agro-based industries would result in direct and indirect employment for many more
persons. In this way, OIL shall be able to enhance its goodwill and image as a ‘people’s company’
and help in wealth creation and capacity building then mere wealth distribution. In a span of 3-4
years, OIL can help to transform the Upper Assam area to a successful agro-based industry belt.
It could become one of the flagship social welfare projects of OIL. This would enhance OIL’s
image and also help in creating an external environment which is conducive for the Company’s
operational activities.

The proposed scheme is based on the ‘end – to – end approach’ taking into account the entire
gamut of agricultural development, with backward and forward linkages, in a holistic manner. The
objective of the scheme is to improve the production and productivity of agricultural crops by
harnessing the potential of the region. Through this scheme, an agriculture based farming system
is to be developed, thereby providing viable and ample opportunities for employment, besides
improving productivity of land. The agro-based industries will not only help in ensuring economic
independence to the SHGs but at the same time result in wealth creation and self-employment.

The scheme strives to address the issues related to demonstration of new technology, organic
farming, efficient water management, etc. in order to adopt compact/cluster based approach. It
covers post harvest management, processing and value addition, including that of medicinal and
aromatic plants. The NE Region is known to use minimum fertilizers and pesticides. This weakness
is proposed to be converted into strength through appropriate technology-based development and

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adoption of organic management of agriculture development activities. In order to help the large
number of unemployed youth and strengthen the rural economy, the focus is on development of
agro-based industries like bamboo cultivation, floriculture, fishery, sericulture, organic farming
etc.

OIL – SIRD MoU

Oil India Limited signed a MoU with the State Institute of Rural Development (SIRD), Assam at
the Company’s fields’ headquarters in Duliajan on 8th September, 2003. The guiding provisions of
the MoU are a long term vision to generate sustainable self employment avenues for the educated
unemployed youths in and around the Company’s operational areas in upper Assam.

Why SIRD?
The State Institute of Rural Development, Assam (apex centre for research and training in
rural development) has successfully implemented similar projects in various areas within lower
Assam. The State Institute of Rural Development (SIRD) has an extensive networking with other
states of India. They have the experience and resource persons to provide hands-on training to
the Self Help Groups.

Focus on Women
OIL has forged an empowering partnership with rural women. OIL’s intervention leverages micro-
credit and skills training to generate alternate employment opportunities. Increased income in
the hands of rural women means better nutrition, health care and education for their children.
Working with SIRD, OIL has organized village women into Self-Help Groups. Group members
make monthly contributions to create a savings Corpus. The Corpus is used to extend soft loans
to group members. The system of mandatory contribution further strengthens the savings habit,
leading to capital augmentation.

The rural market in developing countries is characterized by income inequities, limited access to
resources, poor distribution and communication links, unorganized local markets, and low levels
of education and skills. Harnessing this market of millions requires an approach that combines
technology with innovation, local empowerment, and adaptation and application of existing
knowledge and experience to suit local needs. In this context, OIL has realized that role of
Corporate Sector participation is critical in encouraging local entrepreneurial spirits; and building
partnerships at the lower end of the market (local communities, government authorities, NGOs
and financial institutions) and empowering the local population towards employing and training
local technicians, generation of self-employment avenues etc.

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Self Help Groups
Unemployment among the youth in Assam is as one of the biggest factors for prevailing uncertainty
and turmoil in the State. Traditionally, most youths in the state have hankered after government
jobs. But given the magnitude of the problem mere jobs will never make up the deficit. The only
way out therefore is to create self-employment avenues in the rural sector.

This shortcoming can be overcome by a well-mapped out strategy to organize youth and
unemployed persons in the rural areas. One well-tested method to do this is to create self-help
groups (SHGs) in villages. The emphasis has to be attached to motivate rural people for taking up
self-employment in key economic activities by utilizing locally available resources. This is in line
with government of India’s emphasis on creating self-employment in rural areas through schemes
such as Swarnajayanti Gram Swarojgar Yojana (SGSY). The objective of this scheme is to provide
sustainable self-employment avenues through innovative approaches involving different strategies.
Once the group is formed, each member contributes his/her individual share every month which
is deposited in the joint account maintained by the SHG in a bank. This collective savings of the
SHG is one of the most essential criteria for a SHG to become eligible for loans/subsidies etc
from Banks and institutions like SIRD.

The ABC approach

Advocacy
The advocacy programme targets key decision-makers in government, multilateral and bilateral
agencies and non-government organizations. By convening meeting between decision-makers,
CEOs and other leading figures, OIL advocates the case for their contribution to development on
the social, economic and environmental front.

Building Partnerships
OIL acts as an intermediary in introducing key partners in cross sector organizations from Business,
State and Civil Society and thus brings together the complementary skills and experience in
these sectors. In its role as a facilitator, OIL endeavours to rope in different groups to pool in their
expertise to participate in a process that they could not have achieved on their own.

Capacity Building
OIL plays an important role in building capacity of individuals and organizations by using partnership
approaches. Its events provide a platform to cross sector organizations to evolve partnerships
and address the issues of sustainable development. The idea of cross sector partnerships is not

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only to impart knowledge and develops skill of the organizations involved but would also to bring
about an attitudinal change in the organization.

The Key Aspects

Success of self-employment activities largely depends on capacity building and converging support
services. OIL has, therefore, given adequate attention to the following aspects:

• Identify programmes that have a core business match. Articulates a ‘win-win’ strategy for all
stakeholders.

• Provide inputs on all aspects of context specific programme cycle management which
includes needs analysis, project design, implementation, project monitoring and evaluation.

• In order to make the SHGs strong and sustainable, capacity building is a must.

• Training on building managerial capacity and skill up-gradation to be given adequate attention.

• Technology support services to be provided depending upon the activity and client group.

• Linkages to be provided between SHGs and specialized institutes and organizations within
and outside the state.

• Essential infrastructure to be created to fill up the critical gaps as per local requirements.

• Provide market linkage to each SHG so that all the swarojgaris (self-employed) can earn a
sustainable income.

• Constant monitoring and field level guidance to be provided so that the SHGs can become
expert in their own chosen field of expertise.

• Establish contact and linkage between SHGs and nationalized banks for provision of credit
services to SHGs.

The agro-based industries will not only help in ensuring the economic independence of the people
residing in and around OIL’s operational areas but at the same time result in wealth creation and
self-employment to a large section of the people of Upper Assam. Oil India has christened this
new project as “Rupantar” (an Assamese word meaning Transformation) – which will provide the
rural poor and the unemployed an opportunity to become self-employed. We request you to join
hands in this new socio-economic revolution and bring about a Rupantar – transformation in and
around OIL’s operational areas and the region at large.

Marketing
The marketing of goods by SHGs is an important task. The group will lose interest in the programme
if there is no proper market for the sale of their products.
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The following steps have been taken to promote marketing

• The Government of Assam has issued an order declaring the SHG as approved sources for
the supply of articles required by Govt. Departments.

• The SHGs products may also be sold and displayed at Central/State Emporia, Public Sector
Corporations, Women’s Development Corporations, KVIC retail outlets etc.

• The Gram Shree Melas organized be CAPART and other exhibitions/haats/melas could
also be used to popularize products of SHGs.

• A special marketing outlet is being set up at Duliajan, which will exclusively display and
sale products of SHGs.

Monitoring
Since the success of any self employment activity largely depends upon proper monitoring, OIL-
SIRD has devised a monitoring mechanism to review the various projects. Some of the key
aspects are:

I. Maintenance of accounts

II. Regular meeting and cohesiveness of the group

II. Management of the activities

III Repayment of bank loan

V Market linkage and exposure

Some significant community development initiatives of OIL

• Construction of over 100 bridges/1400 Kms of roads (PWD/Village roads)

• Education (extended financial assistance to over 1500 educational institutions in and around
OIL’s operational areas in Assam)

• Upliftment of education is one of OIL’s most overwhelming concerns for which the Company
has introduced various schemes and undertaken number of well planned programmes to
facilitate the all round improvement of education and educational infrastructure in and around
its operational areas. Over the year OIL has provided benefits to over 1500 educational
institutions and helped educational activities in general by building schools, by aiding in
procurement of laboratory equipment, books, teaching aides, furniture and by launching
scholarships for meritorious students. Launched in 1998, the Company has till provided
merit scholarships to around 1000 students.

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• Financial assistance to socio-cultural/sports/youth organizations /mahila samities
(women organizations)

The Company has supported the youth and women organizations in a big way. The support
is mainly in terms of financial assistance towards enabling the different organizations in
carrying out their developmental activities. OIL places a heavy accent on sports. Besides
sponsoring national ranking tournaments every year, the Company recruits promising young
players and gives them every opportunity to advance their sports careers. OIL has taken up
schemes of holding exhaustive football camps with trained coaches to provide professional
training in the rural areas of Upper Assam. OIL is also promoting rural sports by developing
several village playgrounds and organizing different games in the oilfield areas.

• OIL’s Mobile Dispensary services

The mobile hospital services of OIL have always been one of the most significant community
welfare projects of the Company. Today, the team of doctors and paramedical staff of OIL
hospital cater to the basic medical needs of the villages in and around OIL’s operational
areas. In the recently carried out social audit of OIL’s community welfare initiatives, the
Company’s Mobile Hospital services were ranked very highly by all the respondents. Based
on this feedback, the Company decided to increase the number of visit as well as extend
the services to new areas. From the earlier 16 – 20 visits per month, the mobile services
make 40-50 visits per month. The Company has signed a MoU with St Luke’s Hospital,
which will extend the services to villages in Tinsukia District while the Company’s own team
would cater to villages in Dibrugarh District.

• OIL has extended substantial financial contribution to Assam Medical College and Guwahati
Medical College – the two premier Government hospitals in the state of Assam and Dibrugarh
University, Assam – one the leading centre of higher education in India’s North Eastern
region

• OIL is replacing the telecommunication system of 1157 Km crude oil trunk pipeline which
supplies crude oil to the four refineries in India’s north eastern region with optical fibre cable
(OFC). The additional capacity (bandwidth) that will be available in the OFC System, would
act as an infrastructure provider for value added services in telecommunication business.
OIL has committed to provide the spare bandwidth to Government of Assam’s ASWAN
(Assam State Wide Area Network) project which aims to connect all the district headquarters
of the state.

• KD Malaviya Chair in Dibrugarh University, Assam

OIL instituted a chair in the memory of late KD Malviya, Ex. Petroleum Minister, Government
of India in late sixties in the Dibrugarh University, Assam. This is one of OIL’s social gestures

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 of promoting research works in geoscientific fields relevant to exploration & exploitation of
hydrocarbon for India’s self-sufficiency. OIL contributes an amount of Rs.1 Million (USD .02
Million) under its Social Welfare Programme towards the chair.

Oil India Rural Development Society (OIRDS)

a) Agriculture Development Programme

OIL provides assistance/technical guidance to farmers in nearby villages of OIL’s operational
areas for agricultural development. Farming equipment, hybrid seeds, fertilizers etc. are
distributed to farmers of the region. Introduced in the year 1991, 27 villages have been adopted
under this scheme till date. The emphasis is towards motivating the rural farmers to take up
agriculture as a commercial activity, which otherwise, was a means of subsistence only.

b) Handicraft Training & Production Centre (HTPC)

Established in 1984, OIL’s Handicraft Training and Production Centre, located at Duliajan
imparts training to women on Handicraft, Weaving, Embroidery and Tailoring on monthly
stipendiary for a 9 months period. Till date, over 500 women have been trained, most of whom
have set-up their own small production units.

• General Nursing Midwifery (GNM) training in OIL Hospital, Duliajan

The nursing school in OIL Hospital Duliajan conducts 3 years General Nursing Midwifery
(GNM) training courses which is recognized by the Directorate of Medical Education,
Government of Assam. The annual intake is 20 (Twenty) candidates, out of which two
vacancy each is reserved for SC and ST and four for OBC candidates. Stipend is paid to the
students in addition to limited hostel accommodation, uniform and protective clothing.

• Family Welfare Society, OIL Hospital, Duliajan

Under Family Welfare Society of OIL hospital, families of OIL employees specially the
women are provided education on the importance of good health and help in follow up
treatment in all family welfare cases. Stress is also given towards child care and hygiene.
Special emphasis in given on pre and post natal care and other issues related to women’s
health.

Project Rupantar Highlights

• 170 power tillers have been provided to as many SHGs under special SGSY through credit
linkage from nationalized banks.

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• Two Hatchery units (capacity: 34000) have been installed at Duliajan.

• Chara Chambeli ducklings and Giriraja chicks (100 chicks/ducklings per SHG) have been
distributed to 617 SHGs out of which 110 have been provided credit linkage.

• A Growth Centre with Modern Handlooms has been installed for Training and Production of
Diversified Handloom Products in Eri and Muga (the world famous golden silk of Assam).
Weavers (30 in each batch) from various interior areas are provided a two-month training
programme. Seven batches have already undergone the training and most of them are
being availed loans for starting their own production centres.

• A computer training centre has been established at Duliajan70-80, which provides one-year
advanced computer course at a subsidized rate to a batch of 70-80.

• 112 mushroom units (SHGs) have been provided spawns under action research project of
SIRD.

• An eco-hatchery has been set-up in Padumoni village near Duliajan. It has the capacity to
produce1.5 Million fingerlings.

• 60 SHGs(Piggery), 20 SHGs (Dairy) have come under action research. Out of which 10
SHGs have got credit linkage for setting -up pig breeding centres and all the 20 Dairy
SHGs have got credit linkages

• 800 SHGs have been extended support under action research, while 321 SHGs have got
credit-linkage

Future Goals

• Generate avenues for sustainable self-employment

• Invest more in projects for creating economic assets than social assets (infrastructure)
alone

• Engage in a pro-active dialogue with the beneficiaries to prioritize their needs through time
tested methods like Participatory Rural Appraisal (PRA)

• Invest in educational/health development

• Carry out Social Audit through reputed agencies for critically analyzing the progress, success
and impact of the CSR projects

• Strengthen network with Government/NGOs to create a synergy

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All is well when OIL is well
Ten years back the slogans on the walls of some of OIL’s installations read “Oil India go
back”….today the same walls have been cleaned by local people and they have now written
“When OIL grows, we grow”. This subtly reflects the change in the mindset of once aggressive
and suspecting populace, who have witnessed a literal transformation of their life and villages due
to OIL’s long term CSR goals which lay due emphasis on providing avenues for sustainable self
employment and all-round development of the operational areas.

Epilogue
“Poor people seek institutions that are ‘effective,’ ‘trustworthy,’ ‘uniting,’ ‘dependable,’ ‘respectful,’
‘courteous,’ ‘truthful,’ ‘listening,’ ‘not corrupt’ and ‘not corrupting’. They want to develop their own
organizations so they can effectively negotiate fair partnerships with governments, with traders
and with NGOs; they want direct assistance and local ownership of funds through community-
driven programs, with governments and NGOs accountable to them.”

OIL understands and respects the wisdom of these words. This understanding has enabled OIL
to undertake meaningful CSR initiatives, which have got due recognition in the form of two coveted
awards: Golden Peacock Award for CSR (2002) and TERI CSR Award (2003-04).

As the company enters newer areas it ushers in hope and development for the people of these
remote rural areas; connecting them to the mainstream and helping them realize their dream of a
prosperous future.

CSR for OIL is a journey where the possibilities outweigh the challenges…where the corporate
vision envisions a promising future for the people in and around Company’s operational areas…where
the “OIL-People partnership” ensures that dreams do come true!

References
1. Hundred Years of Oil by S N Visvanath

2. Neglect nature, invite grief - by Mahendra P Lama

3. Social Responsibilities of Business - by Dr. Dulal Bhattacharya

4. Corporate Social Responsibility – by Shankar Venkateswaran

5. (From Charity to Partnership)

6. A globalised market : Opportunities and risks for the poor

7. African Development Bank, Asian Development Bank, European Bank for

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8. Reconstruction and Development, Inter-American Development Bank,

9. International Monetary Fund, World Bank.

10. Shaping the 21st Century: The contribution of development cooperation Development
Assistance

11. Committee. OECD. Paris.

12. Directions, Innovations, and Strategies for Harnessing Action for sustainable development:

13. New Delhi, TERI

14. Poverty, new technologies, and globalization: Opportunities and challenges for

15. Global business

16. New Delhi: TERI

17. Global development finance: country table

18. Washington, DC: The World Bank

19. Global Environment Outlook 2000

20. London: Earthscan Publication Ltd.

21. Attacking Poverty:

22. World Bank, Washington, D C: Oxford University Press

23. People and Ecosystems: The Fraying Web of Life:

24. United Nations Development Programme, United Nations Environment Programme,

25. World Bank and World Resources Institute.

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