Integrity Pact - Governance :: Hindustan Petroleum Corporation Limited

Integrity Pact

The Integrity Pact is applicable for HPCL Tenders and Contracts of value above Rupees 1 Crore.

Throughout its functioning period, HPCL has upheld the important features like total transparency, integrity and accountability. The virtues are integrated into the system as prerequisite for achieving its Vision of becoming a major integrated energy major. HPCL's business relationships with its numerous domestic and international contractors and vendors of goods and services are steered constantly towards a well thought of direction with high transparency and ethical standard as guiding lights in the transaction process.

HPCL also supports The UN Global Compact's ten principles among which a prominent one is "Businesses should work against corruption in all its forms, including extortion and bribery". HPCL has taken up the charge to translate this ideal into business practice. It is all about being able to look beyond business, into the domain of initiating real changes.

HPCL has been among the first Public sector units to sign an MOU with Transparency International India (TII) in July 2007 for the implementation of the integrity Pact in procurement processes and contracts. The Integrity Pact has come into effect from 1st Sept 2007. The Integrity Pact is applicable for contracts of value above Rupees 1 Crore. The Integrity Pact and the appointment of Independent External Monitors (IEM) has been conceptualized to usher in greater transparency in the purchase process. Apart from ensuring a higher level of transparency, the process is also beneficial for resolving dispute through the IEM.

Under the above mechanism IEM(s) is/are appointed by HPCL in consultation with TII and Central Vigilance Commission (CVC). The implementation procedure is full of co-operation and monitoring of standard. HPCL has effortlessly stood the test of time to emerge as the organization with integrity and commitment to transparency.

Smt. Ranjana Kumar and Shri Dipak Chatterjee are the IEM’s with regard to HPCL’s activities effective September 2010. Brief profile of the IEM’s are as under:

Smt. Ranjana Kumar

Smt.Ranjana Kumar was appointed as an Independent External Monitor of the Corporation under the Integrity Pact by the Chief Vigilance Commission vide its letter dt September 06, 2010. Smt.Ranjana Kumar is a Bachelor of Arts and a Gold Medalist. She joined as a Probationary Officer in Bank of India in 1966. Over the period she has held various positions such as Branch Manager, Regional Manager, Zonal Manager and rose to the position of Chief Executive Officer of Bank of India’s US Operations. Subsequently she was appointed as a Chairperson of Canara Bank, Indian Bank and then NABARD. She has authored a book titled “A New Beginning – The Turnaround Story of Indian Bank” . The book was released by the Governor of RBI in New Delhi in May 2008.

Smt Kumar was also appointed as a Vigilance Commissioner in Central Vigilance Commission in December 2005 after her retirement from the Banking services.
Shri Dipak Chatterjee

Shri Dipak Chatterjee was appointed as an Independent External Monitor of the Corporation under the Integrity Pact by the Chief Vigilance Commission vide its letter dt September 06, 2010. Shri Chatterjee is a retired IAS Officer. He joined the Indian Administrative Service in 1966 and served in different assignments in India with the Government of India and the State Government of West Bengal. He retired from the services in 2004.

He has held positions such as Indian Ambassador to European Union, Belgium and Luxemburg at Brussels. He also served as an Advisor in the rank of Permanent Secretary to the Minister of Commerce and Industry in GOI. He was also empanelled as a Consultant with Asian Development Bank as a financial analyst and undertaken several assignments in South East Asia.

Contact Address for the IEM(s):

C/o The Company Secretary,
HPCL, 6th Floor,
Petroleum House,
17, Jamshedji Tata Road,
Churchgate,
Mumbai 400020

Telephone nos: 022 22863611, 22045223
Fax no: 022 22841573
e-mail: corphqo@hpcl.co.in

The Salient Features of the Integrity pact include:

The Commitment of HPCL and bidder / contractor to take all measures necessary to prevent corruption.
Disqualification from tender process and exclusion from future contracts in the event of misconduct disregarding the "Integrity Pact".
The provision of compensation for damages.
Declaration by the bidder with reference to any previous transgression.
Equality in dealing with of all bidders / contractors / sub-contractors
The provision of filing criminal charges against bidders / contractors / sub-contractors that violate the 'Integrity Pact'.
Provision of Independent External Monitor (IEM) to oversee the bidding process, award of contracts and the progress of the contract. The assurance of highest possible transparency.