The exercise was aimed at sharing information across Divisions, primarily focussing on common organisational issues, systems improvements and value addition to the bottom line effected by the Divisions in their respective areas.

The meeting began with the Chairman welcoming the participants to the Communication Meeting.

The following are excerpts from the observations made by the participants at the meeting:

Chairman

With focus on restructuring of the Marketing Division in the recent round of promotions and transfers, the State Offices have assumed greater significance in driving sales, and hence we have invited State Office heads as participants to the meeting.

I have also been addressing colleagues through the ‘Straight Talk’ column in IndianOilxpress and IndianOil News. I keenly look forward to responses from colleagues from across the country giving their views on various issues concerning our company

The Flash Results for the year 2002-03 have already been circulated. The Refineries and Pipelines Divisions have turned in an excellent performance this year. The Refineries Division attained 92.5% capacity utilisation, which is higher than that of the previous year. The go-slow agitation of workmen during March 2003 had affected our overall market share. For the month of March alone, our combined product market share was less than 50%. I have time and again said that we should together build this company. We owe our sustenance to this company.

Each and every employee is a part of the IndianOil family. We do not wish to suppress differences. But individual goals should be aligned to organisational goals. Only then, it will be effective.

I consider all of you gathered here as leaders in your own right, leading your teams towards shared goals and objectives. You are the upholders of values in the Corporation. Unless you as leaders are aware of the issues in this company, you cannot hope to fulfill your roles completely. For this, you need to look beyond your roles and take active and abiding interest in what is going on in this organisation, and identify contentious issues for early resolution before they become unmanageable.

You as leaders of teams are like elders in the family. You should help set things right, and fill the gaps in communication with the family members. Our ultimate goal is to perform at the peak of our ability.

All of you are aware that the refineries went out of Administered Pricing Mechanism (APM) in 1998 and pipelines and marketing in 2002. We are now collectively looking at cost-cutting steps and improving efficiencies.

The McKinsey study on “Strategy, Structure – People – Process” issues of our company is almost complete. They have examined the entire chain of our business processes, starting from crude sourcing & transportation, refining, and transportation of finished products right up to the retail outlets and customers’ tank, besides R&D effectiveness.

A lot of work has already been initiated in various Divisions, especially in achieving stretch targets during 2002-03 and 2003-04. We are in the process of putting in place a performance management system with clearly spelt out goals. Under this, Key Performance Indicators (KPI) will cascade down from the Chairman & Directors, and MOUs will be executed between Divisions in respect of units, refineries, States, etc., on agreed Key Result Areas (KRA) and KPI. The same will form the basis for evaluating performance.

Our Marketing Division is in the process of implementing a Marketing Transformation Programme soon. I am confident that it will be completed successfully at the earliest. While Director (Marketing) will share the details, we should focus on the key issues and protect our market share.

On the Business Development front, Lanka IOC is operating in full swing, and the Hon’ble Minister for Petroleum & Natural Gas, Shri Ram Naik, shall be formally inaugurating IndianOil’s revamped retail outlets (25 stations) in Sri Lanka in May 2003. IndianOil has taken over the Trincomalee tankage and begun operations from there.

Work on the LNG terminal of Petronet LNG Limited at Dahej is going on as per schedule for completion by the end of this year. Many internal issues have been sorted out, and the issue of LNG pricing, which is currently indexed to Japanese crude prices, is also close to resolution. Once the suppliers put their seal on this, we shall be ready to market LNG in India. Meanwhile, a committee has been appointed to advise on the disposal of Naphtha/LSHS likely to become surplus.

We are going through a very challenging phase in the company’s history. Posterity will judge us by how we guide its destiny today. In this, we need to perform a dual role. On the one hand, we should look at what additional efforts are needed to build long-term profitability for our company. We owe this responsibility to our successors. On the other hand, we should not lose sight of our current goals, whether it is enhancing refining margins, reducing pipeline transportation costs or protecting our market share.

I want each colleague in IndianOil to feel this responsibility. I am happy to see this change in mindset already happening. Let us collectively see our company through this challenge. We must become a potent force to reckon with.

I take this opportunity to welcome Mr Jaspal Singh, who is attending the Communication Meeting for the first time in his new capacity as Director (Refineries). I also welcome Mr Anjan Ghosh, our new Advisor (Security), and Shri Shankar Agarwal, Chief Vigilance Officer, who are also here for the first time.

Director (Finance)

All Divisions have contributed to the overall profitability of the Corporation this year. While we had crossed the previous year’s profit figures by the end of the third quarter of 2002-03 itself, the increase was mainly on account of favourable prices, resulting into higher price realisation on stock, additional realisation of pipelines cost, etc., to the extent of Rs. 3,000 crore approximately.

Again, in MS and HSD, we have not been able to maintain prices as per the prevailing market trends, leave alone LPG (Domestic) and PDS kerosene where absorbed about Rs. 3,000 crore loss. We hope that the Government will allow us to fix prices in line with the market trends.

The Iraq crisis brought difficult times for us from Sept-Oct. 2002 onwards. While we tried to reduce petroleum stocks during Nov-Dec 2002, we had to increase stocks again during Jan-March 2003. We are bound to incur certain losses on stock holding. Post-Iraq war, we anticipate crude oil prices to fall further.

We need to increase our market share as well as improve our bottom line so as to have an edge in the competitive scenario.

Our Treasury department has done well in bringing down debts from Rs. 19,000 crore to Rs. 11,000 crore. However, lump sum payments for ONGC crude and tax provisions again raised the figure to Rs. 14,000 crore by end of March 2003.

As a result of the McKinsey study, we have set up a compact Optimisation Group with representatives from Corporate Office and Divisions to study the existing business processes chain from crude oil procurement to retail outlets and suggest course correction with a view to deliver the right product to the customers at the right price. The group shall assist the Divisions in implementing computerised, automated optimisation packages to help forecast product demand across the country on a monthwise/yearwise basis, and the related crude processing and transportation requirements. Since the Optimisation group will look into taxation also, I request all State Heads to bring changes in Sales and other taxes to the notice of this group. Progressively, we need to maintain close liaison and interaction with State Government bodies about how future initiatives in Sales Tax will affect our business. Sales tax audit of State Office level has already been initiated for 2001-02 onwards. As regards excise and customs, we have already brought 11 significant points to the notice of the Finance Ministry and CBEC, out of which 5 points have already been resolved. We are maintaining constant follow-up for the balance points.

I also request Divisional and State heads to reply to all significant audit points on priority and also to ensure corrective action for future to avoid recurring losses.

Director (Marketing)

As the Chairman had mentioned earlier, the Marketing Division has embarked upon a major Marketing Transformation Programme this year to strengthen retail and consumer sales. This involved vertical bifurcation of the sales function into Retail and Consumer segments, right from HO to SO to field levels. Broadly Retail, Consumer, LPG, Aviation and Lubes will now be our main business lines, somewhat akin to the Strategic Business Unit (SBU) structure. These will be supported by common service at the Regional level. Though Regions may not have direct responsibility for sales, their primary objective shall continue to be marketing, with the objective of helping the Sales teams. We propose to strengthen the field force with the addition of about 150 to 200 officers in the current and next round of postings.

A separate Branding Group is being set up at Marketing HO to develop in-house skills in brand building, promotions and campaigns.

IndianOil has lost 1.4% market share for the whole year, whereas it was 3.3% for March 2003 alone. The reason for decline in sales in March 2003 is not far to seek. We have gained market share in ATF, HSD (Direct) and bitumen. I see potential for more gains in bitumen sales in the next one-an-a-half to two years. From November onwards, we are also retrieving lost ground in FO & LSHS sales.

Among the major milestones in the previous quarter are

Extension of IOC Premium (petrol) sales to 43 cities and 225 ROs and Diesel Super to 207 cities and 446 ROs. We are working towards leadership in premium fuels market

Launch of IOCXtra co-branded card offering points from IndianOil ROs and other merchant establishments as also other benefits, with a target of reaching 5 million membership by the year end

Commissioning of Tundla TOP and Mathura and Navagaum terminals

Recurring cost savings of Rs. 8 crore was achieved by rationalising distribution through various depots; Rs 1.7 crore savings on de-leasing of flats, etc.

Director (HR)

To begin with, I would like to share certain feedback we had been receiving from our colleagues in the organisation

While the resolve of the management to improve the company’s performance is commendable, more clarity is required on the agenda and the future course of action

While change initiatives in the organisation structure are welcome, they should be accompanied by proper communication on what is sought to be achieved through them

IndianOil’s field force has the required will and enthusiasm; what they require is proper training and guidance

Senior management below Board level are not being perceived to be playing a prominent role in shaping/formulating the policy decisions

IndianOilPeople are looking for visible leadership support for their initiatives.

I consider change as the epitome of life and the need of the hour. There is a need for more dynamism in our work situations and the participation of all IndianOilPeople in this is imperative.

For me, today’s mantra is ‘Communicate, communicate and communicate’ – this is what is required to be done. Our Chairman himself has taken the initiative through his “Straight Talk”.

Only when we treat today as important, tomorrow as very important, the day after as critical and the day after that as very critical can we reach where we want to reach. And then, we need to do much more to remain where we have reached.

The process of campus selection of Engineering and Management graduates passing out during 2003 has been completed and 99 engineers from 23 institutes and 29 Management graduates will be joining the IndianOil family this year.

The recognised Unions, barring IOEU (EB), formed a ‘United Forum of Indian Oil Workers’ Trade Union’ and raised the following demands with the Chairman:

a) Computer Advance and Maintenance Reimbursement
b) Review of Rationalisation Adjustment Allowance
c) Review of restructuring in the Marketing Division
d) Outsourcing/contracting out perennial jobs
e) Identification of core group of Management

Detailed discussions with the Unions have taken place at the Divisional level and the management’s views/decisions in respect of the said issues have been conveyed.

IndianOil’s Corporate Website (www.iocl.com) was re-designed with additional features from March 2003. More links are being added to the website to make it more dynamic and relevant. Inputs and suggestions on improving the content can be sent to Corporate Communications, CO, who are now maintaining the site.

The IndianOilxpress e-mail bulletin has been upgraded to a comprehensive Internal Communication Portal. It is currently being hosted on the Internet (www.indianoilxpress.com) and is accessible only to IndianOilPeople through a User Name and Password. We are planning to provide access to the website through local Intranet/LAN/WAN routes also.

Recognitions

Hon’ble President of India presented the ‘SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management - Institutional Category Award’ for the year 2001-02 to our Chairman on 5th April 2003.

IndianOil bagged the coveted Petroleum Minister’s Trophy instituted by the Petroleum Sports Promotion Board for overall best performance in Sports and Games.

PRSI National Award-2003 for Best Public Sector Organisation was conferred on IndianOil by the Public Relations Society of India at its International Public Relations Conference in Bengaluru on 19th April 2003. Dr. N.G. Kannan, ED (HR), Corporate Office, received the Award from Shri Bhairon Singh Shekhawat, Hon'ble Vice President of India.

Leading business magazine “Business India” carried a cover story on IndianOil in its Feb. 3-16, 2003 issue.

Director (R&D)

The IndianOil Board has given its formal consent for promotion of R&D Centre as a technology provider. It also approved a proposal to launch a wholly owned subsidiary (tentatively named as IndianOil Technologies Limited) for technology marketing by the R&D Centre. (See Chairman’s concluding remarks)

MoUs for commercialisation and speedy development of products & processes:

With BRPL, for production of needle coke
With Railways, for production of bio-diesel from jatropa plant – technological and commercial tie-up
With CPCL, to synergise capabilities and optimise use of R&D facilities

Besides mechanical completion of IndMax unit at Guwahati refinery, an anti-oxidant package has undergone successful trial production at Taloja complex and is being used by Gujarat refinery. The RR 606 Railroad engine oil has been further upgraded to effect more benefit to the Railways.

The Minister for Petroleum & Natural Gas, accompanied by the Minister of State, visited R&D Centre on 5th March 2003 – the first time by a Cabinet Minister – and said that the Government wants petroleum companies to spend more on R&D and assured that no cap will be there capital expenditure for R&D.

Director (Refineries)

IndianOil refineries set all time high records in crude intake and distillates yield for the year 2002-03, with excellent coordination between divisions in crude supply and timely evacuation of products. Active support of R&D helped in trouble shooting of several refinery problems and optimising operations.

All refineries closely followed up the stretched targets for Jan-March 2003 with 97% accomplishment of the delta improvement in Gross Margin and reduction processing cost over RE budget estimation. The stretch targets for 2003-04 have been set wherein Gross Margin is targeted Rs. 580 crore above MoU target. MOUs for 2003-04 with respective refinery unit heads are being signed today (28.4.03). We are confident of achieving the targets with the support of other Divisions.

To surpass the past year’s achievements in the current year, we are focussing on uninterrupted operations at all units, reduction in input cost, manpower optimisation and operating cost reduction. There were 85 plant interruptions during 2002-03, which not only erode profits but also resulted in unsafe situations. We are launching several initiatives like Maintenance Management System Audit at all refineries, workshops on plant availability improvement, etc. With the lessons learnt and action plans drawn, we hope to improve the on-stream factor this year.

During 2002-03, stream sharing between refineries has begun with exchange of Naphtha streams between Digboi and Guwahati refineries. The synergy of stream sharing among refineries has to be further enhanced keeping this as one of the Key Performance Indicators.

With Digboi Refinery going live on SAP on 1st April 2003, SAP implementation at all refineries is complete.

IOC Premium is now available from five refineries - Haldia, Mathura, Gujarat, Panipat & Barauni refineries. This product is expected to be launched in the next few days in respective markets of Panipat and Barauni refineries. The other three refineries are already supplying this product.

With the commissioning of the CIDW unit at Haldia in March 2003, dispatch of 150N and 500N Group II base oil grades from the refinery is expected to begin in May 2003 after clearance from R&D Centre and Marketing Division.

IndMax unit at Guwahati is mechanically complete and is expected to be commissioned by May end 2003.

Entry tax levied on crude oil by some of the State Governments is an area of concern for us. We have achieved partial success by obtaining an interim stay in Patna High Court on 50% payment of entry tax. A petition is now being filed in the Supreme Court. We are also following up with similar petitions in respect of Mathura refinery.

With a view to reduce input cost by sourcing cheaper crudes, we have introduced six new crudes in 2002-03to enlarge the crude basket. A quick feedback from the refineries to the International Trade Dept. will help enhance our refining margins by procurement of cheaper crudes at the earliest.

Plans for expansion of Panipat refinery beyond 12 million tonnes per annum shall unfold in the next few weeks.

Security of installations is another area of concern. We have learnt several lessons from the Digboi tank fire on 7th March 2003. The refinery team handled the incident very efficiently and avoided a disaster. In view of access control systems being installed at the refineries and other developments concerning security, we have taken up the issue of optimising CISF strength to bring down costs in all our refineries.

Four of our refineries have earned the 5-star rating from the British Safety Council. However that does not mean we can afford to be complacent as has been demonstrated recently by a fatal accident at one of our refineries. Screening of safety films and regular audit of the safety procedures is absolutely essential. A film on construction safety developed by Panipat Refinery has been circulated among all concerned, including Marketing Division.

On behalf of Director (Pipelines)

The Pipelines Division has registered increase in both throughput and profitability for the year 2002-03. Stretched targets for 2003-04 include 1 million tonnes higher throughput than the MoU target and products transportation to the tune of 28 million tonnes.

A consortium led by IndianOil bagged the turnkey project implementation work of the 133-km Baroda-Ahmedabad-Kalol gas pipeline of Gujarat State Petronet Ltd valued at Rs. 198 crore, marking IndianOil’s maiden entry into the highly lucrative field of gas transportation. IndianOil, in consortium with a Moscow firm, has bid for laying a 300-km Iraq-Jordan crude oil pipeline and was rated as the best among technical bids.

Advisor (Security)

There have been several serious attacks on IndianOil installations in the recent past, including a pipeline blast in Digboi, Digboi refinery fire, mortar attack on Guwahati LPG bottling plant and a bomb attack on a tanker in Jammu. I see them as wake-up calls for us to be proactive in our security plans and strategies. Access control and prevention of unauthorised entry is of paramount importance in our security strategy.

We have already circulated guidelines on how to harden security of our installations against attacks and contain damage. Though these guidelines are meant for the North-East, they are applicable elsewhere too.

From my little experience in IndianOil, I find that we are excessively dependent on manpower rather than security gadgets. We are, therefore, reviewing what is available in the market, which can improve our security at minimum cost and provide savings in manpower costs.

I find that Digboi refinery accounts for maximum expenditure on security but has no CISF personnel whereas CISF is operational at our Paradip site. Similarly, we do not need to deploy CISF personnel for routine clerical jobs in security. Therefore, we need to undertake an in-depth study to optimise security manpower across our installations based on standard parameters.

Chief Vigilance Officer

IChief Vigilance Officer

Having joined the Vigilance Dept. recently, I would like to make it clear to all colleagues in IndianOil that I do not see Vigilance as an impediment to growth but as an integral part of the whole. Vigilance stands for transparency and openness. Our department alone cannot be responsible for probity and parity in dealings; we need the cooperation of one and all in the company.

Short-term goals

Discussions and deliberations rather than doubts
Fact-finding, not fault-finding
Focus on totality, and not technicality

Long-term goals

Systems improvement to bring about greater transparency in dealings
Facilitating quick and well-informed decisions

Approach

Preventive vigilance, accountability, reengineering of certain processes to plug loopholes, centralised data bank, especially in HR.

Expectations

Expeditious response, analysis and action, corrective measures, cooperation and collaboration.

With my little experience in IndianOil, I find that in general the filing system needs improvement, and some accountability has to be put in place for lost files. There also does not seem to be much awareness among IndianOil consumers of their rights.

News from Refinery units

News from Refinery Units

Haldia

MS parcel exported to Singapore in March 2003. Bulk bitumen export from refinery begun through Haldia port

Gujarat

Registered the lowest energy use among all refineries. It processed a new crude (cieba) successfully . CISF manpower to be reduced by 92, leading to a savings of Rs. 1 crore in yearly salaries. Three quality circles of the refinery invited to make presentation in Tokyo summit; total 19 such circles operating as of now.

Mathura

Restricted practices in tank wagon loading removed. ED personally conducting shop floor level meetings to motivate teams.

Panipat

Refinery completed 1,048 days (5.84 man-hours) of accident-free operation as on date. Achieved the highest ever crude processing of 6.1 million tonnes during the year 202-03. A new product “SERVO Cut LP” has been launched for use as coolant and flushing media in engineering industries. The refinery registered the highest bitumen dispatch of 394.1 thousand metric tonnes in 2002-03 against the earliest best of 379 thousand metric tonnes in 2001-02.

Digboi

Premier oil carrying out seismic activity in Digboi area with projections of 10 million tonnes of crude oil in 10 years. Drilling to begin in two years’ time. Crude to come first to Digboi and then to other Northeast refineries. IndianOil must build up expertise in E&P operations in Digboi in these two years.

Guwahati

Begun stream sharing with Digboi for value addition. To shortly commence receipt of heavy ends from Digboi for processing in IndMax unit for value addition by increasing LPG production.

Barauni

Facility commissioned for receipt of Ravva crude for onward pipeline transport to BRPL. Started receipts from April 25, 2003.

News from Pipelines units

NRPL

Achieved savings of Rs. 1 crore per annum and refund of Rs. 50 lakhs advance by surrendering power connection of Haryana State Electricity Board and taking full power requirements of KBPL from Panipat refinery power station.
Instrumented pig survey completed for the entire stretch of MJPL pipeline.
Normal and PGMS pumping through KBPL has become a regular feature, resulting in substantial savings in transportation costs
Agitation by workmen had no adverse effect on pipelines operations
Shram Vir award for Shri J.V.Darji, helper, KBPL-Kandla, given away by the Hon’ble Prime Minister of India

WRPL

Company’s flagship crude pipeline SMPL achieved throughput of about 21 million tonnes during 2002-03
SMPL and KAPL earn ISO 9001:2000 accreditation, GSPL first pipeline to earn accreditation for this updated version

KAPL went live on SAP on April 1, 2003, with SMPL to follow suit in July 2003, ahead of October 2003 target
Pilferage attempt in Salaya-Viramgam section of SMPL on 1 April 2003 taken up with police for investigation
Emergency Oil Pollution Response Exercise conducted in March 2003 along with Coast Guard and other neighbourhood companies as a preparation to combat disasters

ERPL

ERPL pipeline system achieved 97.88% of MoU target for throughput for 2002-03, transit loss and energy consumption well within limits
Rerouting of GSPL at three rail bridge crossings completed within a record period of 39 days
HBCPL has started pumping Ravva crude from Haldia for use of BRPL, MoU signed with BRPL for transport of 1.5 million tonnes of crude per annum.
SAP Go-Live successfully completed in HBCPL-Barauni, BKPL-Barauni and GSPL-Guwahati

News from State Offices

  Rajasthan State Office proposed review of pricing strategy in the wake of coal vs fuel oil debate among consumers in the State where IndianOil accounts for 72% of FO and 93% of LDO market

LPG bottling plant commissioned at Port Blair. Shimoga plant readying for commissioning

Gasohol blends launched in Maharashtra State Office and UP State Office areas; entire Maharashtra and Goa to have gasohol supplies by the first week of May 2003. MSO garners 12,000 tonnes of bitumen business

UP State Office launches 5-kg LPG cylinders in rural markets, CRMB bitumen supplies to commence from Mathura by August this year

All marketing locations under Delhi State Office are operating on SAP, enabling preparation of financial statement through the SAP system. Concept of ‘SAP clones’ being introduced to allow SAP locations to do transactions by alternative ways in case of power/connectivity cuts of more than two hours. Batch transfer of files will be taken up once connectivity is restored to update data

SAP introduced in 9 locations under Chandigarh State Office; more sites to go live in May 2003

HPCL’s products pipeline between Mangalore and Bengaluru to commence operations in May 2003. Products to reach Hassan midway in the first leg of commissioning.

GSRTC goes for public tendering for purchase of 424,000 kl pa of products

In Kerala, IndianOil accounts for 42% share in MS and HSD retail, 20% in LPG and PDS kerosene and 38% share in all other fuels put together. Kerala State Office implementing action plant to consolidate retail network and reduce costs

TN State Office registers 1% volume growth in sales, 4.8% growth in LSHS sales

APSO arranges credit facility for SERVO stockists with help of ICICI bank. Anakapalle Jubilee Retail Outlet to earn ISO certification soon

Orissa State Office registers 8.8% growth in sales for 10 major products. Action plan under implementation for retail development

Treasury operations

With funds requirement of Rs. 8,851 crore for the last quarter of 2002-03, the cost of borrowing is declining progressively. As in the case of RBI-approved banks, IndianOil has started purchasing foreign currency through its own dealing room, of up to US $ 40 million on an average daily from April 2003 onwards.

Presentations were also made by the Optimisation and International Trade groups.

Chairman’s concluding remarks

  Communication meetings should become livelier. There are so many things to share. Do not hesitate to express your views on what the future holds for our company

 (On Technology marketing company proposed by R&D Centre) There is nothing wrong in adopting proven methods of business. Chevron has a technology-marketing wing. Shell Global Solutions goes beyond technology to provide end-to-end solutions. We are proud of our R&D Centre but it is not meant only for captive use of our Divisions. The technology developed by R&D Centre should be marketed to others, except those where recipes of products that give us a competitive edge in the market place. Refinery processes anyway becomes obsolete in a short time span. These can be turned into revenue-earners. We want the technology marketing company of the R&D Centre to market its products and services aggressively and earn its place as a profit centre.

Optimisation group should look into (i) profitability of exports/imports of products (ii) lubes production vs FCCU throughput in Haldia refinery to exploit the advantage of high quality lube oils from the refinery

‘Stream sharing’ means looking at IndianOil refineries not as individual entities but as an integrated group. Products of one refinery can be sent to another refinery that has better configuration for enhanced value. In other words, we are looking at the IndianOil Refinery System as a whole to achieve better optimisation and improved margins.

Since we are now scheduling refinery shutdowns ourselves, let us do it with better planning

Refineries to keep Marketing Division informed of long term availability of low-value products like LSHS in advance to enable it to forego prior customer commitments

The issue of high pour-point of Sudan crude to be resolved by Director (Refineries)

Barauni refinery to study viability of calcination plant.

Advisor (Security) to look into the matter of sharing of expenditure on Coast Guard boat at Vadinar by all companies operating in the area.

Since safety & environment parameters have become a cause of concern, all units should expedite introduction of access control systems.

In implementing import parity price, we are losing in coastal areas because of cross-subsidy for upcountry locations. MOP&NG is trying to sort out this ticklish issue of dual pricing

Bulk sales will be under constant attack in future. We must tie up long-term agreements with our customers

Let us implement strategies to retain business, not just strategies to retrieve lost business

We need to move fast in commissioning of retail outlets. Our own subsidiaries have no problem in putting up ROs.

Publicity of premium fuels should be dynamic; we need to change the publicity material at least once in three months. The advertisements should highlight our USP (91 Octane) and be suitably adapted to the local environment

Use IndianOilxpress and other internal communication tools for projecting achievements and for communicating with groups

Debates

There were lively debates on two subjects, promotion policy for officers and the institution of Regional and State-level Coordinators for the oil industry. Here are some of the views put forth by the participants:

Debate on existing promotion policy for officers: Responses

Chairman: There is no secrecy in our system. Let us be transparent

Director (HR): There is a need for debate on how to groom people for senior management positions, which is a matter of concern for the management

Other responses, suggestions by participants:

Restrictions in percentages of ratings hampering evaluation, particularly in higher grades
Existing promotion policy de-motivates more than motivates officers
Higher salaries, employee stock options, rewards system should be put in place to reward high-performers
We need consistent, uniform HR policies over a long period of time
Accelerated promotions in junior grades could cause glut at the top
Not many retirements expected between 2007-2012 in Marketing Division. So there will be lesser promotions from F to G onwards, which can be de-motivating
We need to work out incentives other than promotions

Debate on Regional and State-Level Coordinators’ Posts for IndianOil

Responses:

Definitely not giving us the expected results, except for political and bureaucratic support
Institution of SLC and RLC should continue with IndianOil for PR mileage
It’s extra work, we can opt out
Should continue to be with us till other PSUs like BPC and HPC are fully privatised