Particulars of Organization, its functions and Duties

Hindustan Petroleum Corporation Limited (HPCL) is a Government Company within the meaning of Section 617 of the Companies Act 1956.

The Registered Office of the Corporation is at Petroleum House, 17 Jamshedji Tata Road, Churchgate, Mumbai 400020.

HPCL is an amalgamation of the erstwhile foreign oil companies ESSO and Caltex, which were taken over by the Government of India in 1974 and 1976 respectively.

HPCL is a Central Public Sector Undertaking, with a subscribed capital of Rs. 339.33 Crores. The President of India is presently holding 51.01 % of the paid share capital, the remaining shares being held by various Financial Institutions, FIIs, Banks, Mutual Funds, NRIs and general public including employees of the Corporation.

The shares are listed on BSE / NSE and are actively traded.

HPCL is one of the largest integrated Public Sector Undertaking, engaged in the business of refining Crude Oil and marketing of various petroleum products like Petrol, Diesel, LPG, Kersoene, Lube Oils, Asphalt, branded products like Power, Turbojet, naphtha, ATF (Aviation Turbine Fuel) throughout India and at select foreign countries. Some of these products are exported to other countries.

HPCL owns and operates two refineries situated at Mumbai and Visakhapatnam.

HPCL has focused on its business throughout India by segmenting its business outlook into Retail (Petrol Pumps), LPG, Industries & Commercial (Bulk Fuels supplies to industries, ships), Lubes, Aviation, Refineries etc, with support from the shared services like Finance, Company Secretary, Human Resources, Public Relations, Legal etc.

HPCL has 7 Retail and 6 LPG  Zonal offices at major Cities, in addition to 90 Regional Offices, 37 major Terminals / Installations / Tap Off Points and an elaborate Pan India Infrastructure network comprising Lube Blending Plants, Depots, LPG Bottling Plants, LPG Import Facilities, Petrol Pumps, CNG outlets, Auto LPG Pumps, HP Gas LPG Distributors, SKO / LDO Distributors, Lube CFAs, Aviations Service Facilities (ASF) etc.  

HPCL is managed by a Board of Directors. The Board of Directors consists of a maximum of 15 Directors, incuding the Chairman & Managing Director. The Chairman and Managing Director is the head of the Corporation. The Board comprises of  Wholetime Directors also called Functional Directors – Director Marketing, Director Refineries, Director Human Resources, Director Finance. In addition,  part time Directors representing Government of India, through Ministry of Petroleum & Natural Gas, and part time Independent Directors, also called Navratna Directors are on the Board. All these Directors are nominated by the Government of India.

The Board of Directors is assisted by Executive Directors, General Managers and other Officers / employees in carrying out the day-to-day functions of the Corporation. View Organisational Chart

Chapter II

Powers and Duties of Officers & Workmen

The power and duties of the officers and workmen of the Corporation are derived mainly from the provisions of the Company Act 1956, the Memorandum & Articles of Association of the Corporation, and the various manuals specifying the area of operation of individuals, basis the job description, terms and conditions of appointment, and the delegation of the authorities as specified.

HPCL is a commercial organization and the officers and workmen are appointed to carry out the business operations of the Corporation, in line with the objectives set forth in the Memorandum of the Association of the Corporation and the cocreated vision statement.

While discharging the assigned duties, all employees are required to comply with the applicable provisions of statutes and rules and regulations in force, including the manualised instructions.

Chapter III

Procedures followed in the decision making process, including channels of supervision and accountability

Decision Making Process:

The apex level decision making authority is the Board of Directors of HPCL, except for matters which, as per the Companies Act 1956 are to be decided by the shareholders in the Annual General Body Meeting. The Board has constituted several sub committees, such as Committee of Functional Directors (CFD), the Audit Committee, the Investment Committee, the HR Committee, the Investor Grievance Committee, etc. The meetings of these committees are convened on need basis and the minutes of these meetings are placed for information of the Board. Majority of the members of the Committees except the CFD are independent Non-Executive of Government nominated directors with the whole time directors playing a facilitating role.

The Corporation has constituted an Executive Council comprising of C&MD, the Functional Directors and the Business Unit Heads. This Council discusses important issues concerning the organization, analyse the same and recommend the ‘way forward’ in respect of matters discussed. The emphasis laid by this council is on team approach, mutual support of functions and joint deliberations on issues which has enhanced further the decision making process. It has thus facilitated an integrated thinking process and an aligned approach across the Corporation for achieving the Corporate Vision.

Exercise of Authority:

The Corporation has well documented Limits of Authority Manual, Purchase Manual, Chart of Accounts, etc, facilitating the decision making process at various levels within the organization.

Limits of Authority Manual:

LAM, as it is called, lays down the authorities that can be exercised at various levels, i.e. the Board, Committee of Functional Directors, the Executive Committee, the Contracts Committee, the Bids Committee and also the senior individual positions, etc. for different activities of the Corporation. The manual is divided into segments representing different functions like Sales, Crude & Shipping, Capital Projects, Operations & Distribution, Finance, HR etc., and provides for a decision making process through various committees as above, represented by inter-functional groups including Finance. This ensures a transparent and streamlined decision making process adhering to the laid down systems and procedures and thereby leaving no room for arbitrariness.

The Committee of Functional Directors has delegated further powers to various sub-committees within the organization, viz., Contracts Committee, Bids Committee, Credit Committee etc.

Purchase Manual:

This manual lays down elaborate procedures to be followed while undertaking purchases and in finalization of contracts. It lays down, inter alia, the purchasing authorities at various levels, norms and process for procurement.

Chapter IV

The norms set for discharge of functions

The entire organizational functioning is basis the down delegation of authority at appropriate levels and measures to the individual officers. Several documented manualised instructions have been developed and approved by the Board of Directors, for the discharge of functions by the officers of the organization.

Further guidelines issued by the Government of India, through the applicable departments, and Central Vigilance Commission, Central Information Commission from time to time are also followed.

The guidelines issued by SEBI, Central Vigilance Commission, Stock Exchange listing agreements also aid in the discharge of the functions.

Chapter V

The Rules, Regulations, Instructions, Manuals and Records held by the Corporation under its control or used by its employees for discharge of functions.

All manuals, records which are required for statutory compliance under the various laws, Acts governing the functioning of HPCL

• Memorandum and Article of Association of HPCL
• Citizen's Charter
• Promotion and Transfer Policy
• Marketing discipline Guidelines (MDG)- Retail-2012
• Limits of Authority Manual
• Purchase Manual
• Security Manual
• Safety Manual
• Operations Manual for individual operating units
• Land Lease Agreements
• Dealership / Distributorship Agreements
• Transport Contracts for different operating units
• Purchase Orders / Contracts
• Licenses – Factory / Pollution Control Board, NHAI / Explosive
• Dealer / Distributor selection guidelines & related selection documents
• Contractor operated Lube / Packed LPG Filling Agreements
• Deeds / Agreements of cross country pipeline – Right of way, pipeline station lands
• Annual Reports
• Trade Marks / Registration
• Various manuals related to employees conduct, compensation & benefits, performance management etc.

Chapter VI

Statement of Categories of Documents that are held by the Corporation or under its control

The various documents as detailed in Chapter V are function specific. The usage of certain manuals is restricted by the confidentiality clause and is not open for public scrutiny. The following manuals are restricted and are not open to the public scrutiny. Similar restriction is also applicable on the various contracts entered into by HPCL with their dealers / distributors / land lords in the course of furthering its business.

• Limits of Authority Manual
• Purchase Manual
• Security Manual
• Safety Manual
• Operations Manual for individual operating units
• Land Lease Agreements
• Dealership / Distributorship Agreements
• Dealer / Distributor selection guidelines & related selection documents
• Various manuals related to employees conduct, compensation & benefits, performance management etc.

Following manuals / contracts may be allowed for public scrutiny under the provisions of the RTI Act, after applying the severability clause.

• Memorandum and Article of Association of HPCL
• Transport Contracts for different operating units
• Purchase Orders / Contracts
• Licenses – Factory / Pollution Control Board, NHAI / Explosive
• Dealer / Distributor selection guidelines & related selection documents
• Trade Marks / Registration

Chapter VII

Particulars of arrangement for consultation with the members of the public in relation to the formulation of policy or implementation thereof

HPCL is a commercial organisation engaged in the refining of crude oil and marketing of finished products and allied products and does not have formal arrangement or committee wherein public can attend to formulate policies in the area of activity of HPCL.

However, HPCL do have mechanism of collecting feedback from customers / public for upgrading the service levels to improve the customer satisfaction.

Chapter VIII

Statement of the Boards, Councils, Committees and other bodies consisting of two or more persons constituted as its part or for the purpose of its advise, and as to whether meeting of those boards, councils, committees and other bodies are open to the public or the minutes of such meetings are accessible for public.

HPCL at the apex level is controlled by its Board of Directors.

The Board has constituted several sub-committees, such as the Committee of Functional Directors (CFD), the Audit Committee, the Investment Committee, the HR Committee, the Investor Grievance Redressal Committee, Oil Price Risk Management Committee (OPRMC), Empowered Standing Committee (ESC) etc. The meetings of these committees are convened on need basis. Majority of the members of these committees except the CFD are Independent Non-Executive of Government nominated directors playing a significant facilitating role, along with the whole time directors of the Corporation.

The meetings / records / minutes of the above mentioned bodies are not open to the public. However important decisions taken regarding the corporation and/or its management are communicated to the statutory authorities as also to the public as required under of the applicable laws of the land.

Chapter IX

Directory of Officers and Workmen

HPCL has a total of 11226 employees as of 31.03.2012. The break up is as under:

List of Senior Executives

Chapter X

Statement of monthly remuneration of employees and workmen including system of compensation.

Remuneration to the officers is governed by the directives of the Department of Public Enterprises. The workmen compensation is through negotiations with the recognized unions. The monthly pay structure for officers and workmen, indicating the minimum and maximum of the pay scales are as under:

In addition to the Basic within the above ranges indicated, Dearness Allowance on Industrial DA Pattern, House Rent Allowance or equivalent, City Compensatory Allowance, Leave Travel Concession, Provident Fund, Gratuity, Superannuation benefit, Medical Reimbursement etc. are paid as applicable.

Chapter XI

Budget Allocation and expenditure:

Non Plan Capital Budget for 2006-07 – Amount in Crores

Location / Facility	Carry over as of 01.04.2006	New Projects Approved	Total Budget
Mumbai Refinery	437.48	265.11	702.59
Visakha Refinery	317.65	124.37	442.02
Marketing-excluding LPG Cylinders	1181.76	1494.77	2676.53
Corporate	2.58	492.45	495.03
LPG CVR	741.00	56.28	797.28

Non Plan Capital Budget for 2007-08 – Amount in Crores

Location / Facility	Carry over as of 01.04.2007-Est	New Projects Approved	Total Budget
Mumbai Refinery	534.77	280.93	815.70
Visakha Refinery	300.20	53.46	353.66
Marketing-excluding LPG Cylinders	1627.83	1168.69	2796.52
Corporate	365.50	52.45	417.95
LPG CVR	162.06	338.90	500.96

Non Plan Capital Budget for 2012-13 – Amount in Crores

Location / Facility	For New Projects	For Ongoing Projects	Total Expenditure
Mumbai Refinery	14	217	231
Visakh Refinery	11	69	80
Marketing Total (excluding LPG Cylinders, Valves, Regulators (CVR))	679	1397	2076
LPG CVR (Gross)	142	289	431
Corporate	41	114	155

Non Plan Capital Budget for 2011-12 – Amount in Crores

Location / Facility	For New Projects	For Ongoing Projects	Total Expenditure
Mumbai Refinery	20	173	193
Visakha Refinery	47	74	121
Marketing-excluding LPG Cylinders	1052	1003	2055
Corporate	124	131	254
LPG CVR	1144	0	1144

Chapter XII

Manner of execution of subsidy programmes, including the amounts allocated and the details of beneficiaries of such programmes

HPCL does not have any subsidy programmes for the public

Chapter XIII

Particulars of recipients of concessions, permits or authorisations granted by it

HPCL does not give out any concessions, permits or grants any authorisations directly. However basis MOPNG guidelines, the details of HPGAS domestic consumers availing  subsidised LPG, on All India basis, is  made available here under HPGas Transparency Portal.

Chapter XIV

Details in respect of information available to or held by in electronic form:

The following information, which have been reduced to electronic form are available at www.hindustanpetroleum.com

Chapter XV

Particulars of facilities available to citizens for obtaining information including the working hours of a library or reading room, it maintained for public use

HPCL does not maintain any library / reading room for the use of public.

However, Information regarding HPCL and the business units is available to the public on this website ie. @ www.hindustanpetroleum.com

Chapter XVI

Names and Designations and other particulars of Central Public Information Officers and Appellate Authorities

CPIO- Retail RO  Related to automobile fuels, AutoLPG, Vehicle Lubricants, Petrol Pumps, PDS (Subsidised) Kerosene, Dealer Selection for retail outlets
CPIO- LPG RO   Related to HPGAS: Domestic, Industrial & Bulk LPG, Distributor Selection
CPIO- Direct Sales RO   Related to Industrial/Bulk sales, Lubricants
CPIO- Zonal Operations   Related to Zonal Operations and Terminals
CPIO- HQO   Non-Regional Office-Specific Queries,  Refineries etc. 
Appellate Authorities Appeals related to the replies of the above CPIOs