A

REPORT
ON THE ORGANIATION STUDY OF
GAIL (INDIA) LIMITED, KHERA, UJJAIN (M.P)

Submitted in the partial fulfillment of the requirement of the Master in Business

Administration Program offered by CMS Business School, JAIN (Deemed-to-be
University) during the year 2018-2020

Submitted By:

Kasa Pooja
Registration No. 18MBAR0564

Semester 2, Section-18MF2

Under the guidance of

Dr. Swetha Harsha

CMS Business School, Jain University

No.17, Sheshadri Road, Gandhinagar, Bengaluru, Karnataka 560009
 CERTIFICATE BY THE DEAN

Certificate

Awarded to Kasa Pooja, Registration No. 18MBAR0564, Semester 2,

Section-18MF2

This is to certify that the Organization Study of GAIL (India) Limited,

Khera, Ujjain (M.P.) has been submitted in partial fulfillment of the

requirement for the award of Master of Business Administration of

JAIN (Deemed-to-be University).

Date: Dean- Academics

Place: CMS Business School
 Date; 15thJanuary 2019

Certificate

This is to certify that Ms. K. Pooja a MBA student of CMS

Business School, JAIN (Deemed-to-be University) has successfully
completed her Organization Study in our organization under the
guidance of Shri Anshul Dubey, Sr. Officer (F&A) from 1stJanuary
2019 to 15th January 2019. Her performance & conduct during the
project work was good.

Date: 15th January 2019 Company Guide

Place: Khera, Ujjain (M.P.) (Sh. Anshul Dubey)
Sr. Officer (F&A)
 MENTOR CERTIFICATE

Date:

This is to certify that this Organization Study on “GAIL (India)

Limited” Khera, Ujjain (M.P.) is a record of the original and
independent work carried out by Kasa Pooja under my guidance and
supervision.

This project has not previously formed the basis of the award of any
degree/diploma or other similar title of recognition.

Date:
Place: Mentor Signature:
 DECLARATION

I, hereby declare that this organization study for GAIL (India) Limited,
Khera, Ujjain (M.P.) is prepared by me during the academic year 2018-
2020 under the guidance of Dr. Swetha Harsha.

This project is not based on any previously submitted project for the
award of any degree or diploma offered by any university. It is the result
of my own effort.

Name: Kasa Pooja

Semester 2, Section-18MF2
Reg. No. 18MBAR0564

Date:

Place: Signature
Table of Contents
INDUSTRY PROFILE ................................................................................................................................. 3
1.1 Indian Oil and Gas Industry ................................................................................................................ 3
1.2GROWTH AND PRESENT STATUS ................................................................................................ 5
1.2.1. IMPORTS AND DOMESTIC PRODUCTION: .................................................................... 5
1.2.2.CONSUMPTION: ................................................................................................................... 6
1.3. GLOBAL SCENARIO ...................................................................................................................... 6
1.4. KEY PLAYERS IN THE INDUSTRY ............................................................................................. 9
1.5. PEST ANALYSIS ........................................................................................................................... 10
1. Political Environment: ............................................................................................................... 10
2. Economical Environment:....................................................................................................... 11
3. Sociological Environment: ...................................................................................................... 11
4. Technological Environment………………………………………………………………….10

1.6. PORTER’S FIVE FORCES ANALYSIS IN OIL AND GAS INDUSTRY: .................................. 12
1.6.1. Threat of New Entrants: .................................................................................................. 13
1.6.2. Bargaining Power of Buyers: .......................................................................................... 13
1.6.3. Bargaining Power of Suppliers: ...................................................................................... 13
1.6.4. Threat of Substitute Products and Services:.................................................................... 14
1.6.5. Rivalry among Players in the Industry: ........................................................................... 14
2. COMPANY PROFILE................................................................................................................... 16
2.1. BACKGROUND: ............................................................................................................................ 16
2.2. HISTORY: ....................................................................................................................................... 16
2.3. VISION: ........................................................................................................................................... 17
2.4. MISSION: ........................................................................................................................................ 18
2.5. CURRENT SCENARIO:…………………………………………………...……………………..16

2.6 SWOT ANALYSIS………………………………………………………………………………..17

1. STRENGTH…………………………………………………………………………………..17

2. WEAKNESS………………………………………………………………………………….18

3. OPPORTUNITIES……………………………………………………………………………19

4. THREAT……………………………………………………………………………………….19

2.7. PRODUCT PROFILE……………………………………………………………………………19

2.8. USES……………………………………………………………………………………………..

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2
INDUSTRY PROFILE
1.1 Indian Oil and Gas Industry
The story of oil exploration in India began in the dense jungles and swamps and
river-valleys of the north-eastern corner of the country. Lt. R. Wilcox, Major A.
White, Capt. Francis Jenkins, Capt. P.S. Hanny, W. Griffith, and W.LicutBigge –
they all saw at different times petroleum seepages from the banks of river Dihing.
Mr. C.A Bruce (1828) and Mr. H.B. Medicott (1865) of the Geological survey of
India also saw oil seepages while prospecting for coal in upper Assam.

Stewart and Company, Calcutta drilled a hand-dug well of 102 feet at Nahorpung
near Jaipur area of Upper Assam but failed to establish satisfactory production. In
his second attempt on 26 March 1867, oil was struck at merely 118 feet (35.97-m)
in Asia's first mechanically drilled well at Makum near Margherita area of Upper
Assam.

However, the first well dug at Digboi field in Assam in September 1889 and
completed in November 1890 at depth of 662 feet by Assam Railways and Trading
Company Limited (AR&T Co. Ltd.), registered at London, is regarded as the first
commercially successful oil discovery (200 gallons per day). To add color to
geologic reasoning legend was created that during the construction of a railway
line by AR&T, in the year 1867, a herd of logging elephants returned to camp with
their feet covered in oil after a night time excursion to find food and water. This
led men to trail to the salt lick where seepages were prolific. Looking this, the
elated English owner cried out to his men, “Dig boy, dig". Probably the name
Digboi itself came from that word.

AR&T subsequently acquired a 77.7 square kilometer petroleum-rights concession

in the Makum area of Assam, and by 1893 had drilled 10 wells at Digboi
producing 757.08 liters/day. AR&T established Assam Oil Company (AOC) in
1899 with a capital of £310,000 to take over the petroleum interests of AR&T,
including the Digboi and Makum concessions and set up a small refinery at
Margharita (Upper Assam) with a capacity of 500 bopd to refine the Digboi-oil.
Thereafter, systematic drilling began in 1891 and two years later in 1901, Asia's
first oil refinery was set up in at Digboi. It is still functional and world's oldest
operating refinery.

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Failure to utilize geologic reasoning, promiscuous wild catting, misguided
investment and nonchalance of the management towards technical support led to
compounding of errors by AOC which made the company technically and
financially impotent. Later on UK based Burma Oil Company (BOC) arrived in
1911 in Upper Assam (Surma Valley) and in 1915, after acquiring Oil interest
from Budderpore Oil Co. Ltd (formed by a syndicate of Budderpore tea garden
during 1911-13) began testing option in the Badarpur structure in the Surma valley
(Upper Assam). Gradually by 1921, in a phase-wise manner, BOC acquired
petroleum interests of AOC.

. The Indian Co. "TATA engineering co." has also drilled several wells in Jagatia,
Gujarat and produced small amount of gas in 1930s. The world knew importance
of oil and after Independence, Indian leaders realized its utility for rapid
industrialization and security of nation. The company rule which were earlier
framed to satiate the raw material need of British Empire was re-framed. While
framing industrial policy 1948, the development of petroleum industry in the
country was given top priority.

By 1948, GSI has started geophysical survey in Cambay area. The first oil
discovery in independent India was made by AOC on 1953 in Nahorkatia and then
in Moran in 1956 both in Upper Assam. The oil industry, after independence,
remained operated by foreign company for a considerable period. Burma Oil
Company (BOC) kept its position as largest company in India till end of its
operation.

With the intention of intensifying and spreading exploration to various parts of the
country a separate Oil and Natural Gas Directorate (ONGD) was set up in 1955, as
a subordinate office under the then Ministry of natural Resources and Scientific
Research. The department was constituted with a nucleus of geoscientists from
Geological Survey of India. But soon after its formation it was realized that the
directorate cannot function efficiently with its limited financial and administrative
liberty and in early 1956 its status was changed to a commission. In October 1959
the ONGC was made a statutory body by an act of parliament delegating it more
power but it remained under Ministry. The job of ONGC was defined as "to plan
promote, organize and implement programs for development of Petroleum
Resources and the production and sale of petroleum and petroleum products

4
produced by it, and to perform such other function as the central government may,
from time to time, assign to it".

1.2GROWTH AND PRESENT STATUS

1.2.1. IMPORTS AND DOMESTIC PRODUCTION:

 Domestic production accounts for more than three-quarter of the country’s

total gas consumption
 Demand is expected to increase due to higher economic growth, ensure less
dependency on imported crude and a desire to use cleaner fuel
 India’s LNG imports increased at a CAGR of 9.55 per cent during FY08–
FY17.
 Domestic gas production in India stood at around 30.84 billion cubic metres
in FY17.
 In India, auto LPG sector registered sales growth of 4.9 per cent in the fiscal
year 2016-17. Moreover, the sales volume grew 19 per cent y-o-y to 97
TMT in Q1 FY18. Auto LPG sales in FY17 stood at 346 TMT.

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 1.2.2. CONSUMPTION:

 India’s gas consumption has increased at a CAGR of 2.3 per cent

between 2007 and 2016.
 Demand is not likely to simmer down anytime soon, given strong
economic growth and rising urbanisation. Gas consumption is projected
to reach 216 bcm by 2021-22.

LPG shipments to India will reach 2.4 million tonnes in December, pushing it
ahead of top importer China, on 2.3 million tonnes, for the first time.India’s
average monthly imports in 2017 of about 1.7 million tonnes are well still behind
China’s 2.2 million tonnes, but it has jumped ahead of third-placed Japan on about
1 million tonnes. (As on 27-12-2017)

1.3. GLOBAL SCENARIO

1. Petro-China
Petro-China, founded in the year 1999, is the largest oil and gas producer and
distributor in China and one of the largest in the world. With its focus on three
strategies of acquiring best resources, marketing and internationalization, it is
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committed to harnessing energy with maximum environment protection as
symbolized by its logo. Headquartered in Beijing, China, this company operates its
business through five segments: Exploration and Production, Refining and
Chemicals, Marketing, Natural Gas exploration and its pipeline, and other segment
like cash management, financial activities, R&D, etc.
This company takes full advantage of economies of scale and completely
integrated operations from upstream (exploration and extraction from oil reserves)
to downstream (refining through fractional distillation and distributing) businesses.
It is the listed arm of the state-owned China National Petroleum Corporation, being
traded in Hong Kong and New York Stock Exchanges, it adheres to its core
strategy of revenue maximization and diversifying its operations both in domestic
and overseas markets by acquiring maximum resources, to increase their
shareholders’ and stakeholders’ values. The company has capitalized on China’s
“One Belt, One Road” policy consolidate its five key oil and gas operational
regions, and has adhered to a low cost marketing strategy because of the
unfavorable climate of declining crude oil and natural gas prices. They have been
able to cut down on costs by strengthening dynamic adjustment of output,
intensifying control of key production processes, and reduction of energy usage
and wastage to trod the path of better efficiency. It has adopted a price driven sales
strategy in its overseas business and has focused on broadening its revenue
sources.
Revenue billion USD: 234.76
Profit billion USD: 4.26
Production volume (Mn Barrels/Day): 4.4
2. Royal Dutch Shell
Royal Dutch Shell, or simply known as Shell, is a global leader in oil and
gas.Shell, formed in 1907, through the amalgamation of the Royal Dutch
Petroleum Company of the Netherlands and the "Shell" Transport and Trading
Company of the United Kingdom is headquartered in the Netherlands. The
company is placed at the sixth rank in terms of production by volume.
It is also one of the six oil and gas "supermajors". The Royal Dutch Shell plc,
incorporated on February 5, 2002, is responsible for exploration of crude oil and

7
natural gas around the world, both in conventional fields and from sources, such as
tight rock, shale and coal formations. On the other hand, Shell is a global
conglomerate of energy and petrochemical companies responsible for
outperforming development projects and investing in R&D that leads to low-cost
investments for the future. Their operations are divided into four arms: Upstream
(exploration for new liquids and natural gas reserves), Integrated Gas and New
Energies (on liquefying natural gas (LNG) and converting gas to compressed
liquids), Downstream (turning crude oil into a range of refined products), and
Projects & Technology (meeting the global energy needs in a responsible way)
alongside managing the Corporate and creating values for their shareholders. But
their major strategic focus lies in the technological innovation required to meet the
growing complex demands of modern world. They have a diverse workforce
working together on t\some of the most innovative and challenging projects of the
world, leading to better solutions that have a fruitful impact on the future. They
were the first company to publish their values under the title General Business
Principles in 1976 which laid down the fore ground for other companies to pursue
a sustainable development, striving to realize long term interests rather than
fulfilling short term needs and integrating environmental and social welfare
parameters in all their developmental activities. Its presence is in various sectors
like Retail, Lubricants, Business to Business (B2B), Pipelines, and Biofuels and
alternative energies like biofuels and wind power generation. In trading segment, it
trades crude oil, oil products and petrochemicals with various nations of the world.
Through its marine activities arm, it provides lubricants, as well as fuels and
related technical services, to the shipping and maritime sectors. Shell is vertically
integrated and is active in every area of the oil and gas industry. It has its
operations in over 70 countries and 44,000 service stations worldwide. Shell has a
primary listing on the London Stock Exchange and is a constituent of the FTSE
100 Index.
Revenue billion USD: 233.59
Profit billion USD: 4.77
Production volume (Mn Barrels/Day): 3.9

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3. Exxon Mobil
Exxon Mobil is one of the most well recognized and biggest oil companies
worldwide.Exxon Mobil, among the top global Oil and Gas Companies,
headquartered in Irving, Texas, was formed in 1999 by the merger of Exxon (an oil
company based out of New Jersey) and Mobil (another oil company based out of
New York). With a daily production of 5.3 million barrels per day, it ranks fourth
in terms of both productions by volume and revenue generation.
They have a presence in not only the petrochemical products but also products
derived from hydrocarbons like Plasticizers, Chemicals, etc. They are committed to
carbon capture and storage, optimizing energy efficiency, and sustainability in all
their operations through cutting-edge technologies. Its sustainability concept stands
on three pillars of Social, Economic and Environmental impact. Some of their
technologies for capturing carbon and its storage includes Advanced Carbon fuel
cell technology and Controlled freeze zone and have incorporated Cogeneration for
optimizing energy efficiency. They have a deep concern for preserving the
environment and believe in delivering quality products that meet or exceed the
expectations of their customers through Global Product Quality Management
System (GPQMS). It has a presence in 21 countries with 37 oil refineries and
meets about 3% of the world’s oil and 2% of its energy needs.
Revenue billion USD: 226.09
Profit billion USD: 7.8
Production volume (Mn Barrels/Day): 5.3

1.4. KEY PLAYERS IN THE INDUSTRY

1. GAIL (India) Ltd was incorporated in August 1984 as a central public sector
undertaking (PSU) under the Ministry of Petroleum and Natural Gas
(MoP&NG).
2. Oil and Natural Gas Corporation Limited (ONGC) is an Indian multinational
oil and gas company headquartered in Dehradun, India. It is a public sector
undertaking (PSU) of the Government of India, under the administrative
control of the Ministry of Petroleum and Natural Gas

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3. Bharat Petroleum Corporation Ltd (BPCL) is a Government of India owned oil
and gas company which is headquartered in Mumbai, Maharashtra.
4. Essar Oil is a fully integrated oil & gas company of international scale with
strong presence across the hydrocarbon value chain from exploration &
production to refining and oil retail.
5. GE Oil & Gas is a world leader in advanced technology equipment and
services for all segments of the oil and gas industry, from exploration and
production to downstream.
6. Hindustan Petroleum Corporation Limited (HPCL), a Government of India
enterprise, was founded in 1974.
7. Reliance Industries Limited (RIL) is India’s largest private sector company
with businesses in the energy and materials value chain.
8. Established as an oil marketing entity on June 30, 1959, Indian Oil Company
Ltd was renamed Indian Oil Corporation Ltd (IOCL) on September 1, 1964,
following its merger with Indian Refineries Ltd.

1.5. PEST ANALYSIS

1. Political Environment:
Organization of the Petroleum Exporting Countries (OPEC), an intergovernmental
organization of oil producing countries is the main safeguard of the oil resources
found in majority of the oil rich countries. They control the international crude oil
prices. Along with OPEC other organizations which have a control on the internal
Oil prices is Organization for Economic Co-operation and development (OECD).
Oil and Gas has been the hidden reason behind various wars like the Kuwait
Invasion, The Iraq war etc. In India too development of KG Basin has been a point
of contention between the government companies like ONGC and private players
like Reliance with events having taken a political turn. In December 2006, the
Minister of Petroleum and Natural Gas issued a new policy that allows foreign
investors, private domestic companies, and national oil companies to hold up to
100% equity stakes in pipeline projects. Also under New Exploration Licensing
Policy, newer licenses are given to explore and get oil and gas.

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2. Economical Environment:
Finding of Oil reserves has been seen as a gold mine as Oil and gas reserves are
limited and the prices of crude are rising by the day. For a nation like India the
major import is that of crude and subsidies provided on petroleum products has
been causes loses to the government and Oil companies. The current prices of
crude oil per barrel are around $105 with a variation of 79 to 109 $ over the past 1
year (Source: http://www.oil-price.net/). This industry of great importance as
various other industries depend this sector for its fuel requirement. The economic
growth of a nation is related to availability of crude. Nations with abundant oil
reserves are known to be self-sufficient in terms of economy. The subsidies
provided are causing loses to the government owned enterprises.

3. Sociological Environment:
Sociologically the environment in India is one of growth and advancing
intellectually. As mentioned before, the country has over one billion people and
continues to grow. This creates a huge pool to pull from. India has been
a major country for companies in other countries to outsource to. This is not only
due to cost advantage, but also to an education advantage. The Indian people are
emerging as a learning people and the potential for success in this kind
of environment creates a strong foothold for any company. It’s interesting to note
that GAIL (India) Limited employs approximately 40,000 workers in India.
People are readily accepting the piped natural gas as a substitute to LPG because it
is priced much cheaper than regular LPG cylinder also hassle of booking for an
LPG cylinder is not there.
With growth of the country lifestyle changes and education are reaching in the
non-metropolitan cities and acceptability of PNG would increase.

4. Technological Environment:
The technological environment in India is rapidly increasing. As the country
continues to grow, so also is the technology. With respect to the oil and gas industry, GAIL
(India) Limited was behind technologically, but has since put much needed money
and focus on technology. GAIL realized that they were behind in the technological
environment and this was creating a huge weakness with respect
to their competitors. GAIL has turned what once was a weakness into a

11
strengththough. Technological developments have led to increased exploration and
finding of Oil reserves. Transportation development has happened in this region
over the past few years. Also through various JV’s newer and newer technology
has entered our country. GAIL also implemented advanced technologies such as
Increased Gas Recovery, Enhanced processing of Gas and Supervisory Control and
Data Acquisition. This greatly enhances their ability for Gas recovery and also for
a competitive advantage. Other great technological advances were the
implementation of an ERP, MIS and inventory control system. GAIL also
implemented a completely digitized magnetic media seismic library, which is
considered the one of the best in the world. This was a much needed improvement
in technology over all their previous years to help compete on the world market. It
cannot be emphasized enough how important technology is in a large corporation
like this battling in a market that is very tough and depleting.

1.6. PORTER’S FIVE FORCES ANALYSIS IN OIL AND GAS INDUSTRY:

Porter's Five Forces framework is one useful strategic tool to evaluate potential
opportunities and threats/risks for the oil and gas industry. The profitability of any
firm is based on the overall profitability of the industry and to build a profitable
competitive strategy the firm should understand the overall competitive strategy of
the industry. For this, the strategists of the corporate sector suggest the Porter five
forces analysis. Through this, the firm gets the insight about the industry and is
able to sustain high rates of return.

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1.6.1. Threat of New Entrants:
This refers to the force of entrance of potential new competitors in the industry
which can attack the profits of the old players of the market. There are many
reasons, firstly, huge capital is required as to establish a petroleum company some
major activities are essential to perform which requires a huge capital investment.
It costs billions of dollars to develop oil fields for the easily accessible reserves and
much more for the off-shore oil reserves which are located thousands of meters
under the seabed and such reserves require very advanced technologies for the
extraction of oil and conversion into Natural Gas. Not only this it also includes
other costs like labor cost, research cost, material and energy cost, this ultimately
created a big hurdle for new entrants in the industry. Secondly, it is not easy to gain
the access to the channels for distribution in the Natural gas industry globally. The
Natural Gas companies operating at national or international level own well-
established distribution channels. These distribution channels are very costly to
establish and take much time. The third and major impediment for the new entrants
in the industry are the government policies that always favor the national
companies in many ways as oil and gas are the resources own by the state and state
tends to favor the national companies.

1.6.2. Bargaining Power of Buyers:

Without potential buyers an industry stands nowhere, buyers have a strong
influence on the profitability of the industry as they can bring down the prices or
demand more services or they may ask for improved quality by negotiating and
bargaining among the competitors. But when we talk about the petroleum and
natural gas industry, it is the industry where the prices are set at the global level
based on the demand and supply of oil. Oil is usually traded between the two
parties over the counter but at a global price. So in the case of the petroleum and
natural gas industry, the willingness to spend on oil and gas is the only power the
customer or buyer possesses. The buyers of such organizations are usually
distributors, refiners; marketers’ etc. countries can also be the buyers like China,
Japan, U.S etc. which are the large consumers. Up till now the empirical evidence
suggest that only big consumers may affect global demand.

1.6.3. Bargaining Power of Suppliers:

Suppliers can also erode the industry’s returns by increasing the prices or
decreasing the quality of the product or services. Big petroleum firms have a
13
complex network of suppliers which include suppliers of equipment, material,
engineering; pipeline installation etc. oil producing countries appear as the
powerful suppliers of the industry with an extensive bargaining power. The
members of Organization of the Petroleum Exporting Countries (OPEC) are the
one how actually nationalized the oil production in their countries. OPEC nations
hold 2/3 of the whole world’s oil reserves, so they possess a significant bargaining
power. The members of OPEC were kind of mean to the foreign countries when
the prices were skyrocketing. On the other hand, this bargaining power somewhat
changed since when the prices decreased threefold at the beginning. Yet many
things are in favor of the members of OPEC as they have more skills and expertise
in the field. The policies of these countries can make other firms go out of the
petroleum industry.

1.6.4. Threat of Substitute Products and Services:

The substitute or alternative of service or product limits the profit of the other
organizations and decreases their value. Oil and gas are the major source of energy
and are irreplaceable. The reason of its being irreplaceable is that it is the cheaper
source as compared to other fuels. The substitutes once became the threat for oil
and natural gas producing companies. The widely used substitutes for oil are coal,
wind energy, solar energy, natural gas and thermal energy (renewable energies).
Future expectations are that natural gas will have high growth rate as compared to
oil. The forecast shows that gas will gain noteworthy market share in the
commercial, residential and industrial sectors. Whereas the consumption of coal is
expected to fall as the suppliers are distant from the market and only a few
countries have coal resources. Energies like thermal, wind or solar will slowly and
gradually make their place in the market in future. However, oil and gas companies
should not take too lightly the potential of these substitutes of energies, because the
world is supporting the use of these sources of energy because of low emission of
Carbon monoxide and carbon dioxide. Therefore, oil and gas companies need to
focus on these renewable energies.

1.6.5. Rivalry among Players in the Industry:

Rivalry occurs in all industries. It occurs when companies try to excel or gain an
opportunity to make their position strong in the society. There are few factors that
determine the level of rivalry in an industry. For example in oil and gas industry,
the competitive environment is defined as few strong players with large market
14
share and many small players with low market shares and power. Other factors
adding to rivalry among the competitors in the industry include the high fixed and
storage cost and deficiency of product differentiation.

15
 2. COMPANY PROFILE

2.1. BACKGROUND:
GAIL (INDIA) Limited is a Govt. Of India undertaking and young
“MAHARATNA” Company working under the Ministry of the Petroleum &
Natural Gas and playing a great role in the National economy. GAIL’s Turnover
increases 5% to Rs. 24,996 crore in FY 2009-10. Net Profit up 12% at Rs. 3140
crore. Board recommends total dividend of 75% on paid up capital.It is India's
largest gas transportation company, integrating all aspects of the natural gas value
chain. It is listed by Forbes as one of the world's 2,000 largest public companies in
2007.

GAIL (India) Ltd was incorporated in August 1984 as a Central Public Sector
Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG).
The company was initially given the responsibility of construction, operation &
maintenance of the Hazira – Vijaypur – Jagdishpur (HVJ) pipeline Project. It was
one of the largest cross-country natural gas pipeline projects in the world.
Originally this 1800 Km long pipeline was built at a cost of Rs 1700 Crores and it
laid the foundation for development of market for natural Gas in INDIA.

2.2. HISTORY:
GAIL (India) Ltd. (erstwhile Gas Authority of India Ltd), India's principal gas
transmission and marketing company, was set up by the Government of India in
August 1984 to create gas sector infrastructure for sustained development of the
natural gas sector in the country.

16
The 2800-km Hazira - Vijaipur - Jagdishpur (HVJ) pipeline became operational in
1991. During 1991-93, three LPG plants were constructed and some regional
pipelines acquired, enabling GAIL to begin its regional gas distribution in various
parts of India. GAIL began its city gas distribution in Delhi in 1997 by setting up
nine CNG stations, catering to the city's vast public transport fleet.

In 1999, GAIL set up northern India's only petrochemical plant at Pata.

GAIL became the first Infrastructure Provider Category II Licensee and signed the
country's first Service Level Agreement for leasing bandwidth in the Delhi-
Vijaipur sector in 2001, through its telecom business GAILTEL. In 2001, GAIL
commissioned world's longest and India's first Cross Country LPG Transmission
Pipeline from Jamnagar to Loni.

GAIL today has reached new milestones with its strategic diversification into
Petrochemicals, Telecom and Liquid Hydrocarbons besides gas infrastructure. The
company has also extended its presence in Power, Liquefied Natural Gas re-
gasification, City Gas Distribution and Exploration & Production through equity
and joint ventures participations. Incorporating the new-found energy into its
corporate identity, Gas Authority of India was renamed GAIL (India) Limited on
November 22, 2002

2.3. VISION:
Be the leading company in Natural Gas and Beyond, with Global Focus,
Committed to Customer Care, Value Creation for all Stakeholders and
Environmental Responsibility.

Key Elements of GAIL's Vision

Leading Company

Be the undisputed leader in the Natural Gas market in India and a significant
player in the global natural gas industry, by growing aggressively while
maintaining the highest level of operating standards

Natural Gas and Beyond

Focus on all aspects of the Natural Gas value chain and beyond including
Exploration, Production, Transmission, Marketing, Extraction, Processing,
17
Distribution, utilisation including Petrochemicals and Power and Natural Gas
related infrastructure, products and services

Global Focus

Create and strengthen significant global presence to pursue strategic, attractive

opportunities that leverage GAIL's capabilities while effectively managing
business risks

Customer Care

Anticipate and exceed customer expectations through the provision of highest

quality infrastructure, products and services

Value Creation for All Stakeholders

GAIL will create superior value for all stakeholders including shareholders,
customers, employees, business partners, surrounding communities and the nation

Environmental Responsibility

GAIL is committed to operational excellence in all we do with a focus on

continuous efforts to improve environmental performance for ourselves and our
customers and will be sensitive to the needs of the environment in all our actions

2.4. MISSION:
To accelerate and optimize the effective and economic use of Natural Gas and its
fractions for the benefit of the national economy.

2.5. CURRENT SCENARIO:

Today, GAIL's Business Portfolio includes:

•7,800 km of Natural Gas high pressure trunk pipeline with a capacity to carry 157
MMSCMD of natural gas across the country
•7 LPG Gas Processing Units to produce 1.2 MMTPA of LPG and other liquid
hydrocarbons
•North India's only gas based integrated Petrochemical complex at Pata with a
capacity of producing 4,10,000 TPA of Polymers

18
•1,922 km of LPG Transmission pipeline network with a capacity to transport 3.8
MMTPA of LPG
•27 oil and gas Exploration blocks and 3 Coal Bed Methane Blocks
•13,000 km of OFC network offering highly dependable bandwidth for telecom
service providers
•Joint venture companies in Delhi, Mumbai, Hyderabad, Kanpur, Agra, Lucknow,
Bhopal, Agartala and Pune, for supplying Piped Natural Gas (PNG) to households
and commercial users, and Compressed Natural Gas (CNG) to the transport sector
•Participating stake in the Dahej LNG Terminal and the upcoming Kochi LNG
Terminal in Kerala
•GAIL has been entrusted with the responsibility of reviving the LNG terminal at
Dabhol as well as sourcing LNG
•GAIL Gas Limited, a wholly owned subsidiary of GAIL (India) Limited, was
incorporated on May 27, 2008 for the smooth implementation of City Gas
Distribution (CGD) projects. GAIL Gas Limited is a limited company under the
Companies Act, 1956.
•Established presence in the CNG and City Gas sectors in Egypt through equity
participation in three Egyptian companies: Fayum Gas Company SAE, Shell CNG
SAE and National Gas Company SAE.
•Stake in China Gas Holding to explore opportunities in the CNG sector in
mainland China
•A wholly-owned subsidiary company GAIL Global (Singapore) Pte Ltd in
Singapore

2.6. SWOT ANALYSIS:

STRENGTHS:
1) GAIL is a state owned company. So it presents GAIL with all the support it
needs directly from the government to lay its distribution network and grow its
capacity by transmitting various products across the country.

2) GAIL has a strong Infrastructure which consists of pipelines and various offices
in India. This increases its capacity to serve more people and also improves its

19
efficiency as it can supply different products across to users in less time through
the pipelines.
3) As GAIL has such a wide distribution network of pipelines across the country ,
it leaves its competitors with little choice. It makes the Industry hard for the
competitor to enter.

4) It uses top technology. The major benefits of GAIL's IT initiatives include cost
reduction, operational efficiency, employee satisfaction, faster decision making,
better service to customers, better vendor management, seamless and faster
information sharing, quick response time with better and faster communication.

WEAKNESSES:
1) GAIL does not has a gas supply of its own. It takes gas from ONGC & OIL. So
in future it can face hard times, if GAIL doesn’t find out secured supply lines of
Natural gas soon. So, though GAIL is secure today, unless it beefs up its gas
supplies at good prices, it could lose some competitive advantage to Reliance in
the coming years.

2) State-owned – Since it is a state owned company, it has to follow certain

guidelines laid by the state or the government. The prices of the gas are fixed &
GAIL has to sell

1) Market is expected to grow at a very fast rate with economy growth

2) Stringent environmental policy could further enhance the growth

3) There is a good opportunity coming up in City Gas Distribution Sector

4) Relaxation of govt. regulation would give a big chance of making good profits.

5) Expand global export market and have international tie-ups.the gas at that fixed
price.

20
OPPORTUNITIES:
1) Market is expected to grow at a very fast rate with economy growth

2) Stringent environmental policy could further enhance the growth

3) There is a good opportunity coming up in City Gas Distribution Sector

4) Relaxation of govt. regulation would give a big chance of making good profits.

5) Expand global export market and have international tie-ups.the gas at that fixed
price.

THREATS:
1) There is a major threat of shortage of long term sustainable supplies of natural
gas.

2) Threat of high competitive rivalry is there with big players like reliance going
into downward integration.

3) Threat of substitute alternate sources of energy is there but it is not very high in
short run.

2.7. PRODUCT PROFILE:

1) Natural gas

2) LPG & other liquid hydrocarbons

3) Propane

5) Pentane and Naptha

6) Mixed Fuel Oil

7) Propylene

8) Hydrogenated C4 Mix

9) Fertilizers

21
2.8.USES:
1)Power generation

Natural gas is a major source of electricity generation through the use of gas
turbines and steam turbines. Most grid peaking power plants and some off-grid
engine-generators use natural gas. Particularly high efficiencies can be achieved
through combining gas turbines with a steam turbine in combined cycle mode. For
an equivalent amount of heat, burning natural gas produces about 30% less carbon
dioxide than burning petroleum and about 45% less than burning coal. Combined
cycle power generation using natural gas is thus the cleanest source of power
available using fossil fuels, and this technology is widely used wherever gas can be
obtained at a reasonable cost. Fuel cell technology may eventually provide cleaner
options for converting natural gas into electricity, but as yet it is not price-
competitive.

2) Domestic use

Natural gas is supplied to homes where it is used for such purposes as cooking in
natural gas-powered ranges and ovens, natural gas-heated clothes dryers,
heating/cooling and central heating. Home or other building heating may include
boilers, furnaces, and water heaters. CNG is used in rural homes without
connections to piped-in public utility services, or with portable grills. Natural gas
is also supplied by independent natural gas suppliers through Natural Gas Choice
programs throughout the United States. However, due to CNG being less
economical than LPG, LPG (propane) is the dominant source of rural gas.

3) Transportation

Compressed natural gas (methane) is a cleaner alternative to other automobile fuels

such as gasoline (petrol) and diesel. As of 2008 there were 9.6 million natural gas
vehicles worldwide, led by Pakistan (2.0 million), Argentina (1.7 million), Brazil
(1.6 million), Iran (1.0 million), and India (650,000). The energy efficiency is
generally equal to that of gasoline engines, but lower compared with modern diesel
engines. Gasoline/petrol vehicles converted to run on natural gas suffer because of
the low compression ratio of their engines, resulting in a cropping of delivered
power while running on natural gas (10%-15%). CNG-specific engines, however,
use a higher compression ratio due to this fuel's higher octane number of 120–130.

22
4) Fertilizers

Natural gas is a major feedstock for the production of ammonia, via the Haber
process, for use in fertilizer production.

5) Aviation

Russian aircraft manufacturer Tupolev is currently running a development program

to produce LNG- and hydrogen-powered aircraft. The program has been running
since the mid-1970s, and seeks to develop LNG and hydrogen variants of the Tu-
204 and Tu-334 passenger aircraft, and also the Tu-330 cargo aircraft. It claims
that at current market prices, an LNG-powered aircraft would cost 5,000 roubles (~
$218/ £112) less to operate per ton, roughly equivalent to 60%, with considerable
reductions to carbon monoxide, hydrocarbon and nitrogen oxide emissions.

The advantages of liquid methane as a jet engine fuel are that it has more specific
energy than the standard kerosene mixes do and that its low temperature can help
cool the air which the engine compresses for greater volumetric efficiency, in
effect replacing an intercooler. Alternatively, it can be used to lower the
temperature of the exhaust.

6) Hydrogen

Natural gas can be used to produce hydrogen, with one common method being the
hydrogen reformer. Hydrogen has various applications: it is a primary feedstock
for the chemical industry, a hydrogenating agent, an important commodity for oil
refineries, and a fuel source in hydrogen vehicles.

7) Storage and transport

Because of low density, it is not easy to transport or store natural gas. Natural gas
pipelines are impractical across oceans. LNG carriers transport liquefied natural
gas (LNG) across oceans, while tank trucks can carry liquefied or compressed
natural gas (CNG) over shorter distances. Sea transport using CNG carrier ships
that are now under development may be competitive with LNG transport in
specific conditions.

Gas is turned into liquid at a liquefaction plant, and is returned to gas form at
regasification plant at the terminal. Ship borne regasification equipment is also
23
used. LNG is the preferred form for long distance, high volume transportation of
natural gas, whereas pipeline is preferred for transport for distances up to 4,000 km
over land and approximately half that distance offshore.

CNG is transported at high pressure, typically above 200 bars. Compressors and
decompression equipment are less capital intensive and may be economical in
smaller unit sizes than liquefaction/regasification plants. Natural gas trucks and
carriers may transport natural gas directly to end-users, or to distribution points
such as pipelines.

In the past, the natural gas which was recovered in the course of recovering
petroleum could not be profitably sold, and was simply burned at the oil field in a
process known as flaring. Flaring is now illegal in many countries. Additionally,
companies now recognize that gas may sold to consumers in the form of LNG or
CNG, or through other transportation methods. The gas is now re-injected into the
formation for later recovery. The re-injection also assists oil pumping by keeping
underground pressures higher.

A "master gas system" was invented in Saudi Arabia in the late 1970s, ending any
necessity for flaring. Satellite observation, however, shows that flaring and venting
are still practiced in some gas-producing countries.

With 15 countries accounting for 84% of the worldwide production, access to

natural gas has become an important issue in international politics, and countries
vie for control of pipelines. In the 2000s, Gazprom, the state-owned energy
company in Russia, engaged in disputes with Ukraine and Belarus over the price of
natural gas, which have created worries that gas deliveries to parts of Europe could
be cut off for political reasons.

8) Other

Natural gas is also used in the manufacture of fabrics, glass, steel, plastics, paint,
and other products.

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 PRESENT ORGANIZATION STRUCTURE
1.1. ORGANISATION HIERARCY:
GAIL (India) Limited is headed by a Director-General and has two organizational
units: Research and Planning Unit and Coordination Unit.

Chief
Managing
Director

Director
Director Director Director
Director (HR) (Business
(Project) (Marketing) (Finance)
Development)

Executive
Executive Executive Executive Director Executive
Director Director Director (Business Director
(Project) (HR) (Marketing) Development) (Finance)

Chief Chief Chief General Chief

Chief General General General Manager General
Manager Manager Manager (Business Manager
(Project) (HR) (Marketing) Development) (Finance)

General
General General General Manager General
Manager Manager Manager (Business Manager
(Project) (HR) (Marketing) Development) (Finance)

Deputy Deputy Deputy Deputy General Deputy

General General General Manager General
Manager Manager Manager (Business Manager
(Project) (HR) (Marketing) Development) (Finance)

25
 SOME DEPARTMENTS IN GAIL (INDIA) LIMITED

TECHNICAL DEPARTMENTS

4.1.MECHANICAL DEPARTMENT

Mechanical Department is playing vital role at Compressor Station at GAIL,

GAIL, Khera as far as its equipment availability for the processing of the Natural
Gas. It requires high level of skills for the periodical maintenance of huge
machineries. The most important of these are gas turbine generators, gas
compressors, instrument air compressors and etc. The equipments are of very high
grade and uses latest state of art technologies for the processing of the natural gas
as well as taking care of the process. The main aim and activities of the
department :

To maintain Uninterrupted Natural Gas supply

1.To Ex-GAIL, Khera consumers through M-Meter,

2. NTPC Kawas ( From DUPL / HVJ Line )

3. PMT consumers through H-Meter and

4. Operation of Compressor Station & P/L associated under its jurisdiction

4.2.PIPELINE DEPARTMENT

Pipeline department has a responsibility for the maintenance of the pipeline after
the project department is finished with the laying of the pipelines.

Maintenance of the pipelines

For the maintenance of the pipeline the pipes used are painted and then covered
with the coating of polythene from inside and outside.

Another very important method to control the corrosion of the pipes is Cathodic
protection.

26
4.3.ELECTRICAL DEPARTMENT

The primary function of the electrical department in GAIL is to ensure

uninterrupted power supply to the whole plant. For this purpose the power is
developed indigenously by using two GTG’S. The capacity of both the GTG is 2.7
MW & voltage 6.6 KV. Besides that in event of shutdown of both the GTG due to
failure or maintenance and any other reason, there is a stand by diesel generator.

4.4.INSTRUMENTATION AND OPERATION

Instrumentation and operations dept. has been given the responsibility of proper
functioning of the compressors.

This dept has its control room. This control room has no PLCs (Programmable
logic controllers) embedded in large control panels. These control panels gives us
the information about everything that is going on in and outside the compressor.

A programmable logic controller (PLC) or programmable controller is a digital

computer used for automation of electromechanical processes, such as control of
machinery on factory assembly lines, amusement rides, or lighting fixtures. PLCs
are used in many industries and machines. Unlike general-purpose computers, the
PLC is designed for multiple inputs and output arrangements, extended
temperature ranges, immunity to electrical noise, and resistance to vibration and
impact.

NON-TECHNICAL DEPARTMENT

4.5.HUMAN RESOURCE DEPARTMENT

HR OBJECTIVES
1. To develop and sustain core values.
2. To develop leaders for tomorrow.
3. To provide job contentment through empowerment, accountability and
responsibility
4. To built an upgrade competencies through virtual learning, opportunities for
growth and providing challenges in the job.
5. To foster a climate of creativity, innovation and enthusiasm.
6. To enhance the quality of life of employees and their family.

27
 7. To inculcate the high understanding of ‘service’ to a greater cause.

FUNCTIONS OF HR DEPARTMENT:

Establishment section
Employees’ personal file is maintained in this sector. It is covering all the peculiar
personal details of the personnel. It is coordinating the personal information with
service information.

 Maintaining personal files of employees.

 Hiring process, creating employee data
 Issue of office orders for NOC.
 Fixation of pay scale on promotion.
 Regularizing leave records of employees – commuted leave.
 Approval of medical token cards for self and dependents.
 Fixing of terminal benefits, service certificates etc., for retiring employees.
 Processing of EL encashment.
 Separated employees section for dealing files of retired employees for
medical claims, pension and other benefits.
 Issuing office orders on internal postings and transfers.
 Issue of officer order on completion of probation of employees.

4.6.FINANCE DEPARTMENT
Finance department is the most important part in any organization. This
department covers all financial needs of the entire department in to the
organization.

VARIOUS SECTIONS IN THE FINANCE DEPARTMENT:

(1) Central Accounts Section, Sales accounting, Asset accounting and Cost
accounting
a) This section is responsible for preparing the Trading A/C, Profit & Loss
A/C & Balance Sheets for the respective financial year.
b) This section records each and every transaction under the respective
books of accounts.

28
 c) As this section has to face Audits like Internal Audit, External Audit,
Statutory Audit, Tax Audit etc, it has to be very diligent and steadfast in
its work.

(2) Cash & Bank Section

a) This section is responsible for the receipts & payments either in cash or
in cheque or by any other form.
b) This section is also responsible for the custody of cash, documents in
respect of investments of corporation money & other important
documents

(3) Personal claim Section

a) This section takes care of any payment due to the employees & makes
arrangement for it.
b) Payments to the employees include mainly salary & certain other benefits
provided according to their pay scale.

(4) Pre-audit section-Contractual ,suppliers payment

(5) Budget section
(6) Miscellaneous payments section

DEPRECIATION:
Property, Plant and Equipment (other than Oil and Gas Assets)
Land and buildings held for use in the production or supply of goods or services, or
for administrative purposes, are stated in the Balance Sheet at cost less
accumulated depreciation and impairment losses, if any. Freehold land and land
under perpetual lease are not depreciated.
Depreciation on additions/deletions to PPE(other than of Oil and Gas Assets)
during the year is provided for on a pro-rata basis with reference to the date of
additions/deletions except low value items not exceeding `5,000/- which are fully
depreciated at the time of addition.

29
Intangible Assets
Intangible assets with finite useful lives that are acquired separately are carried at
cost less accumulated amortization and accumulated impairment losses.
Amortization is recognized on a straight-line basis over their estimated useful lives
not exceeding five years from the date of capitalization. The estimated useful life is
reviewed at the end of each reporting period and the effect of any changes in
estimate being accounted for prospectively.
Oil and Gas Assets value in balance sheet:
Oil and Gas Assets are stated at historical cost less accumulated depletion and
impairment losses. These are created in respect of an area/field having proved
developed oil and gas reserves, when the well in the area/field is ready to
commence commercial production. Cost of temporary occupation of land,
successful exploratory wells, all development wells (including service wells), and
allied facilities, depreciation on support equipment used for drilling and estimated
future decommissioning costs are capitalized and classified as Oil and Gas Assets.
Oil and Gas Assets are depleted using the “Unit of Production Method”. The rate
of depletion is computed with reference to an area covered by individual
lease/license/asset/amortization base by considering the proved developed reserves
and related capital costs incurred including estimated future decommissioning/
abandonment costs net of salvage value. Acquisition cost of Oil and Gas Assets is
depleted by considering the proved reserves. These reserves are estimated annually
by the Reserve Estimates Committee of the Company, which follows the
International Reservoir Engineering Procedures.

REVENUE RECOGNITION
Revenue arising from sale of products is recognized when the significant risks and
rewards of ownership have passed to the buyer, which is at the point of transfer of
custody to customers, and the amount of revenue can be measured reliably and it is
probable that the economic benefits associated with the transaction will flow to the
Company.
Revenue from services is recognized when the outcome of services can be
estimated reliably and it is probable that the economic benefits associated with
rendering of services will flow to the Company, and the amount of revenue can be
measured reliably. Revenue is measured at the fair value of the consideration

30
received or receivable and represents amounts receivable for goods and services
provided in the normal course of business, net of discounts, service tax and sales
tax etc. Any retrospective revision in prices is accounted for in the year of such
revision.
Sale of crude oil and natural gas (net of levies) produced from Intangible assets
under development – Exploratory Wells in Progress/Oil and Gas assets under
development – Development Wells in Progress is deducted from expenditure on
such wells.
Revenue in respect of the following is recognized when there is a reasonable
certainty regarding ultimate collection:
(i) Short lifted quantity of gas
(ii) Surplus from Gas Pool Account
(iii) Interest on delayed realization from customers
(iv) Liquidated damages from contractors/suppliers.
As per the Production Sharing Contracts for extracting the Oil and Gas Reserves
with Government of India, out of the earnings from the exploitation of reserves
after recovery of cost, a part of the revenue is paid to Government of India which is
called Profit Petroleum is reduced from the revenue from Sale of Products as
Government of India’s Share in Profit Petroleum.

FINANCE COST
Dividend and interest income:

Dividend income from investments is recognized when the shareholder’s right to

receive payment is established.

Interest income from financial assets is recognized at the effective interest rate
method applicable on initial recognition.

FOREIGN EXCHANGE TRANSACTIONS

The functional currency of the Company is Indian Rupees which represents the
currency of the primary economic environment in which it operates. Transactions
in currencies other than the Company’s functional currency (foreign currencies)
are recognized at the rates of exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign
currencies are translated using mean exchange rate prevailing on the last day of the

31
reporting period. Exchange differences on monetary items are recognized in the
Statement of Profit and Loss in the period in which they arise.

TAXES
INCOME TAXES:
Income tax expense represents the sum of the current tax and deferred tax.
(i) Current tax:
The tax currently payable is based on taxable profit for the year. Taxable profit
differs from ‘profit before tax’ as reported in the Statement of Profit and Loss
because of items of income or expense that are taxable or deductible in other years
and items that are never taxable or deductible. The Company’s current tax is
calculated using tax rates and laws that have been enacted or substantively enacted
by the end of the reporting period.
(ii) Deferred tax:
Deferred tax is recognized on temporary differences between the carrying amounts
of assets and liabilities in the Financial Statements and the corresponding tax bases
used in the computation of taxable profit. Deferred tax liabilities are generally
recognized for all taxable temporary differences. Deferred tax assets are generally
recognized for all deductible.

32
REVENUE FROM OPERATIONS

The following is an analysis of the company’s revenue from operations for the
year: (Rs. In millions)

33
4.7.CONTRACT& PROCUREMENT

The main responsibility of the Contracts & Procurement Department is to perform

price inquiries, preliminary inquiries, calls for tenders, assess the offers and tenders
received for their commercial adequacy, coordinate the Contracts Award
Committee, place and follow-up the purchase orders and contracts in conformity
with the company policy.

The Procurement Department purchases goods, services and equipment for all
departments. This department ensures the methods of procurement are equitable,
that the products procured meet all bid specifications and are of high quality, and
are the best value for the tax dollar. This department also prepares and executes all
company contracts for supplies, services and construction. After award, an
extensive contracts administration program goes into effect

•Procures goods, services and equipment for all departments of company.

•Performs value and market analyses and develop new sources of supplies.

•Ensures fairness and equity in awarding purchases.

•Obtains best market prices through research and the competitive bidding process.

•Assists company departments in planning, scheduling and bidding purchases.

•Maximizes competition by publicly advertising all solicitations and utilizing the

sealed bid/proposal process.

•Certifies Small Business Enterprises and assist in the development of small

businesses.

4.8.HEALTH, SAFETY & ENVIRONMENT DEPARTMENT:

Exploration and production of hydrocarbon involves risk and close interaction with
surrounding environment. To safeguard the working and surrounding environment,
GAIL (India) Limited has adopted a well defined HSE policy focusing on
Occupational Health, Safe Operation and control of pollution.

This department in GAIL (India) Limited is mainly responsible for operations as

per the following three statutory norms.

34
 HSE

OISD DGMS(OMR) MOEFCC

1. Oil and Industry Safety Directorate (OISD):

The Oil Industry Safety Directorate (OISD) is a regulatory and technical
directorate in India. It was established in 1986 by Ministry of Petroleum and
Natural Gas. The OISD formulates and implements safety standards for the oil
industry.

The main responsibilities OISD are:

 Standardization;
 Formulation of the disaster management plan;
 Accident analysis;
 Evaluation of safety performance.

OISD has framed rules and guidelines for safe distances to be observed for
various facilities in an oil installation. All the new liquefied petroleum gas
(LPG) bottling plants in India are designed based on the guidelines of OISD.
Further, The LPG plants can be started only after the approval of OISD. OISD
has also issued guidelines for the safe operations of petrol stations and
standards related to petroleum installations.

2. Directorate General of Mines Safety(DGMS):

Directorate General of Mines Safety, DGMS in short, is the Regulatory Agency
under the Ministry of labour and employment, Government of India in matters
pertaining to occupational safety, health and welfare of persons employed in
mines (Coal, Metalliferous and oil-mines).

35
 ONGC need to follow Oil Mines Regulations (OMR)-1984 recently amended as
OMR-2017 published by DGMS. It deals with matters for the prevention of
possible dangers in OIL mines in India.

DGMS has power to control and take actions for any contra version in mainly
five departments(drilling, production, well works, logging, and technical
works).

3. Ministry of Environment, Forest and Climate Change (MoEFCC):

The ministry is responsible for planning, promoting, coordinating, and
overseeing the implementation of environmental and forestry programmes in
the country. The main activities undertaken by the ministry include
conservation and survey of the flora of India and fauna of India, forests and
other wilderness areas; prevention and control of pollution; afforestation; and
land degradation mitigation.

HSE- ONGC conducts environmental pollution control checks frequently. HSE

follows polluter pay principle, it pays pollution fee to central and state
STRUCTURE OF PRODUTION DEPARTMENT:

1.5. MARKETING AND DISTRIBUTION:

There is no specific department for marketing in GAIL (India) Limited. Since
GAIL (India) Limited is in upstream, the only responsibility of it is production.
The middle stream companies are taking responsible for distribution and selling.

PRODUCT CUSTOMER COMPANY

Natural gas GAIL
Naaptol NPBC
Superior kerosene oil Not sold
High speed diesel Internal consumption

36
1.6. CORPORATE SOCIAL RESPONSIBILITY

GAIL Hriday
GAIL remains committed to the principles of Corporate Social Responsibility
(CSR) which it strongly believes play a defining role in the development of the
country. The Company’s vision of “value creation” for all stakeholders remains the
guiding force behind the social interventions.

1)GAIL Ujjwal (Education Centric Initiatives)

To boost the outreach of education among the lesser privileged, GAIL has
contributed for creation of school infrastructure like class rooms, IT facilities,
libraries, science labs, provision of equipment and stationery to schools to enhance
creativity among students and improve attendance of children.

2) GAIL Arogya
GAIL is making proactive efforts to address the issues of health and sanitation, by
introducing interventions that make at least primary health care facilities accessible
and affordable to the rural and marginalized communities.

37
3) GAIL Kaushal (Livelihood Generation And Skill Development Initiatives)

4) GAIL Unnati (Rural Development & Infrastructure Initiatives)

GAIL is guided by the triple bottom line i.e. people, profit, planet and takes
cognizance of the fact that society's economic competitiveness is interlinked to its
social, economic and environmental health.

5) GAIL Saksham ( Care Of The Elderly And Differently Abled )

GAIL is sensitive to the fact that the interventions must address the needs of
communities at the periphery of development and recognizes its responsibility
towards various stakeholder groups, for holistic development of all.

6)GAIL Sashakt( Women Empowerment Initiatives)

GAIL has now created a new thrust area specially focused for the empowerment of
women. This is also in line with the guidelines of DPE and the rules of the
Companies Act, 2013. SEWA – a new initiative introduced in Ujjain, M. P. this
year, has provided skill training based training to 3200 women in courses in
Computers, Beauty & make-up, tailoring, karchok, Tiffin service, financial literacy
training. Etc

7) GAIL Harit (Environment Related Initiatives)

Commitment towards the Environment forms an implicit part of GAIL's Vision
statement. As part of the bigger Sustainability ambit, GAIL remains conscious of
sensitivities associated with natural habitats and ecosystems

38
 5. FINDINGS AND SUGGESTIONS:

5.1. FINDINGS
 There is a separate training institute in GAIL (India) Limited for newly
recruited staff and internship students. They follow well organized procedure
and documentation to recruit the people.
 The intern students are provided with proper guide who can help the students
to excel in their path of academics and career.
 As GAIL (India) Limited is established in 1984, it has made several changes in
organization functioning in these many years to get effectives and efficiency in
its Performance.
 GAIL (India) Limited is also encouraging disabled people by recruiting few
people considering their academic qualifications and their capabilities.
 GAIL (India) Limited is committed towards promoting sports and sponsors
International and National events while supporting financially weak
sportspersons.
 GAIL (India) Limited has taken a giant leap towards Digitization by awarding
the Contract for the Implementation of enterprise-wide paperless office
solution in GAIL (India) Limited.
 ICE (Information Consolidation for Efficiency) Project is introduced by GAIL
(India) Limited to optimize and standardize business processes for integrated
information availability.
 For internal circulations GAIL (India) Limited is maintaining a portal called
GAILTEL Id number and password is given to each individual employee to
access this portal.
 GAIL (India) Limited is having GAILTEL Telecom & Telemetry services arm
of GAIL (India) Limited, is providing communication services for its business
critical pipeline Supervisory Control and Data Acquisition (SCADA)

5.2. SUGGESTIONS
 Though GAIL (India) Limited is trying to implement paperless documentation,
it is difficult to raise paperless bills received from external parties. For this
much more updated technology is required for converting external bills to
paperless documents.

39
 GAIL (India) Limited must find more exploration and extraction areas which
would help in self sufficiency.
 The profit of the Company is in a good sign towards development, but as
public sector undertaking of government of India it is taking much risk of
research and development than other oil companies.

5.3. CONCLUSION:
 My organization study in GAIL (India) Limited helped me to know various
aspects of how a well structured organization works.
 And how sub departments are arranged in each department for effective
functioning
 This study also gave me an additional knowledge to create a successful career
path.
 This internship helped me to boost up my practical knowledge in corporate
environment.

5.4. REFERENCES:
 http://www.gailonline.com
 GAIL (India) Limited annual report
 www.google.com
 www.ibef.org
 Economic times
 DGH website

= x =

40