sustainable development report – numaligarh refinery ... · of retail marketing activities in...

N R L S u s t a i n a b l e D e v e l o p m e n t R e p o r t 2 0 1 1 - 1 2 1

Sustainable Development Report –

Numaligarh Refinery Limited

2011-12


Contents

Message from the Managing Director ............................................................................... 5

Introduction and Reporting Process ................................................................................. 8

How to read our report ................................................................................................................ 8

Indian Oil & Gas Sector .................................................................................................... 10

An Introduction .......................................................................................................................... 10

Key Performance Highlights ..................................................................................................... 11

Numaligarh Refinery Limited: An Overview .................................................................... 12

Major Units at NRL .................................................................................................................... 12

Process Flow Diagram.............................................................................................................. 14

NRL’s Vision and Mission ................................................................................................ 15

Profile ......................................................................................................................................... 15

Corporate Vision........................................................................................................................ 15

Corporate Mission ..................................................................................................................... 16

Corporate Objective .................................................................................................................. 16

Corporate Profile ....................................................................................................................... 17

Board of Directors: .................................................................................................................... 18

Management Team: .................................................................................................................. 18

Development and Management of our People ....................................................................... 19

Sustainability Committee .......................................................................................................... 19

Recruitment and Induction ....................................................................................................... 19

Training and Development ....................................................................................................... 20

Human Resources .................................................................................................................... 20

Stakeholder Engagement ......................................................................................................... 20

Sustainability Framework................................................................................................. 23

Introduction ................................................................................................................................ 23

Environmental Sustainability Framework ................................................................................ 23

Some of our recent initiatives ............................................................................................... 24

Climate Change & Energy .................................................................................................... 24

Our Approach ........................................................................................................................ 25

Oil & Gas Conservation Fortnight 2012............................................................................... 26

Identified Projects .................................................................................................................. 27

Social Sustainability Framework .............................................................................................. 27

Our Approach ........................................................................................................................ 28


Strategy & Governance ............................................................................................................ 28

Strategy & Analysis ............................................................................................................... 28

Governance ........................................................................................................................... 29

Sustainable Development: Core of Strategy & Governance ............................................. 30

Opportunities for NRL ........................................................................................................... 31

Identified Weaknesses of NRL ............................................................................................. 31

Our Approach ........................................................................................................................ 32

Commitment to Individual: People ........................................................................................... 32

Our Approach ........................................................................................................................ 33

Triple Bottom-Line Approach of NRL................................................................................... 34

Business Performance ..................................................................................................... 35

Financial Results ....................................................................................................................... 35

Sales Figures & Revenue from sales: ..................................................................................... 36

Value of raw material & other consumables ........................................................................... 38

Proportion of Spending on Goods & Suppliers ....................................................................... 40

Environment & Climate Change....................................................................................... 42

Strategy and Approach ............................................................................................................. 42

Carbon Management Drives – CDM Initiatives ...................................................................... 44

Environmental Performance Records ..................................................................................... 45

Solid Waste Management ........................................................................................................ 47

Environmental Expenditures .................................................................................................... 47

Water Management .................................................................................................................. 48

Wastewater Discharge.............................................................................................................. 49

Waste Management: ................................................................................................................. 49

Air Emission Management ....................................................................................................... 49

New Environmental Initiatives .................................................................................................. 50

Recognitions and Standards .................................................................................................... 51

Human Rights ................................................................................................................... 52

Child Labor ................................................................................................................................ 52

Employment ............................................................................................................................... 53

Employment of Women ............................................................................................................ 53

Organizational Security ............................................................................................................ 53

Product Stewardship ........................................................................................................ 54

Products ..................................................................................................................................... 54


Technology Absorption ............................................................................................................. 55

Research and Development (R&D) ......................................................................................... 56

Safe use and disposal of products .......................................................................................... 56

Functional Excellence Milestones ........................................................................................... 57

Social Sustainability Performance .................................................................................. 60

Corporate Social Responsibilities ............................................................................................ 60

Education: Primary Focus of NRL’s CSR Policy .................................................................... 62

Promoting Employment ................................................................................................... 64

GRI List of Indicators ........................................................................................................ 69

Assurance Statement ....................................................................................................... 79

Appendix ........................................................................................................................... 81


Message from the Managing Director

Dear Stakeholders,

We are pleased to present before you NRL's 2011-12 Sustainability Development Report, ‘Driving Sustainable Growth’. The importance of businesses in improving the quality of life has been recognized long back. This is because businesses have significant and long-lasting impact on people, society and the planet as a whole. Numaligarh Refinery Limited in its journey of sustainability has always strived to achieve excellence in all spheres with an eye on the zenith.

For ensuring sustainable development, NRL has taken some specific initiatives. Besides maintaining all parameters well within norms, 100% effluents generated from the refinery and township are reused within the refinery. Also, various environment friendly projects including reuse of contaminated rain and storm water, generation of power by Solar PV installation have been taken up by NRL.

NRL achieved unprecedented excellence in all physical parameters of refinery operation during 2011-12 exceeding ‘Excellent’ MOU targets. Capacity utilization reached the unprecedented height of 94.2 % with 2.825 MMT crude throughput. Distillate Yield of 91.52% and Specific Energy Consumption of 59.7 MBN were at best levels since the commissioning of the refinery. In fact the Distillate Yield recorded was the highest in the Indian Oil Industry.

The Company also achieved the highest ever sales turnover in a single year which crossed the Rs. 14,000 crores mark. Despite such notable achievements on the physical front, net profit declined as compared to the previous year due to duty restructuring by the Government in June 2011. To improve the profitability of the company, value added projects pertaining to production of Paraffin and Micro-crystalline Wax and petrochemical grade Naphtha are in advanced stages of implementation.


During the fiscal, natural gas utilization facilities at the Hydrogen Unit were successfully commissioned, which has not only contributed in improving Distillate Yield but has reduced operating costs, thereby improving refining margins.

NRL’s total production of petroleum products during 2011-12 stood at 2.755 MMT. Out of 2.73 MMT of products marketed by the Company during the financial year, 19% were sold within North East and balance 81% were moved out. Bulk of products, aggregating 81%, was sold to BPCL. Retail Sales amounted to 7.1%. On the Retail marketing front, as on 31st March, 2012, NRL had 75 Retail Outlets of which, 67 were within North East. To offset under-recoveries in Retail marketing due to the Company not being covered under government’s compensation scheme, NRL started rationalization of retail marketing activities in 2010-11. During 2011-12, due to higher crude oil prices, NRL’s retail under-recoveries persisted despite the rationalization exercise in previous year. Towards a plausible solution to this problem, actions were taken for handing over NRL’s entire retail network to BPCL. As on date, all operating ROs have been handed over to BPCL.

NRL considers Safety as an integral part of business planning and operation process. There was no Loss Time accident (LTA)during 2011-12. As on 31st March, 2012, NRL’s cumulative LTA free man-hours reached 18.3 million, representing over 10 years of LTA free operations, which is continuing. NRL signed a MOU with Transparency International India (TII) to implement an ‘Integrity pact’ with its business partner’s viz. suppliers and contractors of goods and services. This is a step towards further strengthening and formalizing the existing practices of fair and transparent dealings between the company and its suppliers, contractors and customers. It is pertinent to mention that NRL is the 41st company in India to enter into such a MOU with TII .

NRL is pursuing a broad array of growth opportunities by way of implementing value added projects so as to remain profitable and ensure sustained growth. Expenditure on Plan projects during the 11th Five Year Plan (2007-12) was Rs. 652 crores against approved outlay of Rs. 625 crores. Two major projects currently under implementation are the Wax project and the Naphtha Splitter project. Overall progress of the ongoing Wax project and the Naphtha Splitter project reached 27% and 78% respectively. NRL’s plan outlay for 12th Five Year Plan is Rs. 8,955 crores of which 90% pertains to refinery expansion. The company is exploring the possibility of expanding the refining capacity from the current level of 3 MMTPA to 8/9 MMTPA together with options of sourcing and transporting the additional crude oil requirements from Dhamra Port in Odisha.

NRL has invested in two joint venture companies. NRL’s investment in the equity of M/s Brahmaputra Cracker & Polymer Limited as on date stands at Rs. 127 crores. A sum of Rs. 43 crores has been invested in M/s DNP Limited for the Duliajan-Numaligarh natural gas pipeline project which was commissioned in 2011.

In terms of Corporate Social Responsibility, thrust areas of NRL include income generation from agriculture and allied activities; education; infrastructure development; health and promotion of art, sports, literature & culture. During 2011-12, the Company had effectively implemented several schemes for promotion of education such as ‘Gyandeep’, ‘Prerona’ and ‘Dronacharya’. Free medical camps were extensively organized in collaboration with VK NRL Hospital, Numaligarh. Towards promotion of self employment, necessary assistance were provided to various self-help groups for setting up handlooms, poultry farms, piggeries and fisheries. A pioneering scheme titled, ‘System of Rice Intensification’ (SRI) was introduced, benefiting several farmers with increased rice productivity. In addition, several schemes for development of infrastructure in villages and towns surrounding the refinery were implemented during the year. An amount of Rs. 5.86 crores was spent during the year on CSR activities compared to Rs. 4.97 crores in the previous year.

I express my sincere appreciation for the invaluable contribution and cooperation of my colleagues on the Board in charting the sustainable roadmap of the Company for continuous growth and profitability, thereby steering it to greater heights. As I conclude, I sincerely thank each and every one of you, our


stakeholders, for the confidence and trust reposed upon us. We remain committed to sustain growth, improve our performance continually and live up to your expectations.

Sincere regards,

Dipak Chakravarty,

Managing Director 10-01-2013


Introduction and Reporting Process How to read our report

This publication aims to present the evolution of NRL’s sustainability journey, in an objective and transparent manner, to allow it to be readily understood.

GRI Guidelines – This is the first time, we are publishing our Sustainable Development Report according to the Global Reporting Initiative (GRI) guidelines, G3 version

Reporting period – NRL management has decided to go for an annual reporting cycle. This report covers the April 2011 to March 2012 period.

Structure – The way chapters have been organized allows tracking of results achieved by NRL in our three main activities, as determined by our Sustainable Development Policy: Sustainable Operator, Local Sustainable Development Catalyst and Global Sustainability Agent. This structure reaffirms our commitment to harmonize the economic, social and environmental aspects of our business.

Management approach – We are in the process of globalizing our corporate processes and documents, considering the dynamics of business. Such integration involves time and involvement of qualified teams as it’s an complex process. NRL management is in the process of determining a materiality matrix prioritizing the material issues and plans to report the same in the next sustainability reporting cycle 2013.

GRI application Level – This report reaches the GRI B+ Application Level, reporting all profile items, information on management approach and core performance indicators, in accordance with the principle of materiality established by the Global Reporting Initiative. We have reported 25 GRI G3 indicators of which 17 are core and 8 are additional.


Boundary – The boundary of the report only covers NRL’s operation in Numaligarh, Assam, India. NRL management holds no control over any Joint Ventures. Hence, the report boundary does not cover any Joint Ventures (JVs), subsidiaries of NRL. NRL management holds the ownership for all data and information published in this report.

Limitations – Within the reporting boundary, NRL does not have any limitations.

External Assurance – The information included in the Sustainable Development Report 2011-12 has been externally assured by independent auditor Det Norske Veritas (DNV), as per the declaration on page 79. The assurance scope includes economic, social and environmental performance data of NRL as per GRI guidelines.

Contact – For additional information on our company and our sustainability initiatives, please visit us at http://www.nrl.co.in/. Your feedback is very valuable to us and will help us improve in our sustainability initiatives. Please email your feedback on our sustainability report and our sustainability initiatives to:

Mr. Nilim Kumar Borthakur Chief Manager (HSE) Numaligarh Refinery Limited Dist.: Golaghat, Assam, India PIN- 785699 Email: [email protected]

http://www.nrl.co.in/

mailto:[email protected]


Indian Oil & Gas Sector

An Introduction

India’s real economic growth averaged around 8 percent in the past decade, leading to 6.5 percent growth in the demand for energy. As per the government’s projected economic growth, energy demand is expected to rise in coming days. Coal, oil and natural gas are the most important sources of primary energy in India. Globally, India is the fifth largest energy consumer and continues to grow rapidly. Oil accounts approximately 31 percent of India’s total energy consumption. As per BP Statistical Review of World Energy (June, 2009), India’s 5.80 bn of oil reserve represents only 0.5 percent of world’s total. In terms of gas, India currently accounts for 0.4 percent of global reserves. The Oil & Gas sector in India is dominated by state-controlled enterprises. State-controlled enterprises dominate both upstream & downstream segment, although private players are now active in increasing their market share. The Pie diagram below shows an estimated Indian Energy Market in 2025 (BP Statistical Review of World Energy, 2010).

25%

20%

2%

51%

2%

Estimated Indian Energy Basket (2025)

Oil Gas Hydro Coal Nuclear


Key Performance Highlights

Recorded the highest ever quantity of Crude oil processed, i.e. 2825 TMT, an increase of 25.6% over 2010-11

Total sales volume grew to 2728 TMT compared to 2137 TMT, an increase of 27.7% in the previous year.

Distillate Yield during the year was 91.52%, higher compared to the MOU target of 90.04%, and the highest in the industry.

Sales turnover increased to INR 8972.19 crores, an increase of 56.4% over that of the previous year and the highest ever

Specific energy consumption for the year 2011-12 at 59.7 MBN was better compared to the MOU target of 69.0 MBN

The Compound Annual Growth Rate (CAGR) for PAT stood at 21.3% as on 31st March, 2012.

The manpower count at NRL increased from 820 in 2010-11 to 841 in 2011-12.

The Book value per share for the year ending 2011-12 was INR 36.69 against INR 35.36 for 2010-11.


Numaligarh Refinery Limited: An Overview Major Units at NRL


Process Flow Diagram


NRL’s Vision and Mission

Profile

Numaligarh Refinery Limited (NRL) operates at Numaligarh in the district of Golaghat, Assam, India. It was set up in accordance with the provisions made in the historic Assam Accord signed on 15th August 1985. Numaligarh Refinery Limited (NRL) is a public sector enterprise primarily engaged in the business of petroleum refining and retail distribution. Presently, Bharat Petroleum Corporation Limited (BPCL) holds 62.96% of the company’s paid up equity capital while Government of Assam, Oil India Limited and Oil Industry Development Board are the other shareholders. With its track record of profitability and steady growth, it has earned the status of a “Mini Ratna” PSU. NRL is a single operating unit and it has no subsidiaries.

NRL is planning to diversify into power generation by leveraging local resources namely natural gas for which a pipeline from Duliajan to Numaligarh has already been built under a joint venture (JV) company named AGCL. However, NRL management holds no control over the Joint Ventures (JVs).

The main products of the 3 MMTPA capacities Numaligarh Refinery is are Liquefied Petroleum Gas (LPG), High Speed Diesel (HSD), Aviation Turbine Fuel (ATF), Superior Kerosene Oil (SKO) and Motor Spirit (MS) which are marketed mainly through Bharat Petroleum Corporation Limited (BPCL). The major units at NRL include the Crude & Vacuum Distillation Unit, Delayed Coker Unit, Hydrogen Unit, Hydrocracker Unit, Sulfur Recovery Block, Coke Calcination Unit and Motor Spirit Plant. Although NRL has been majorly engaged as a petroleum refining company for a number of years, it has lately entered into the retail distribution segment. The company has permission from the government of India to market Motor Spirit and High Speed Diesel through a chain of retail outlets in various parts of the country. A number of outlets have already been commissioned and the sales have been quite encouraging.

Corporate Vision

To be a vibrant, growth oriented energy company of national standing and global reputation having core competencies in refining and marketing of petroleum products committed to attain sustained excellence in performance, safety standards, customer care and environment management and to provide a fillip to the development of the region.


Corporate Mission

► Develop core competencies in Refining and Marketing of petroleum products with a focus on achieving international standards on safety, quality and cost.

► Maximize wealth creation for meeting expectations of stakeholders. ► Create a pool of knowledgeable and inspired employees and ensure their professional and

personal growth. ► Contribute towards the development of the region.

Corporate Objective

To excel in its performance, NRL would strive to:

► Maximize refinery capacity utilization and optimize product pattern by efficient refinery operation. ► Ensure smooth and timely evacuation of products; create a sound customer base and necessary

marketing infrastructure. ► Achieve highest standards in product quality, safety, health and environment protection. ► Manage and operate the facilities in an efficient and cost effective manner for generation of

adequate internal resources. ► Inculcate best business practices through the use of ERP and E-Commerce. ► Focus on development and growth of Human Resource through proper training and career

planning. ► Plan for production and marketing of low volume, high value products. ► Remain at the technological forefront by continuous up-gradation of in-house expertise and

absorption of the latest technologies. ► Establish strong corporate identity and brand equity. ► Facilitate economic and industrial development of the region.

NRL has always been committed to highest level of corporate governance and has derived values from a system that integrates ethics, corporate integrity and best in class compliance practices. Transparency, fairness, disclosure and accountability have been central to the working of the company, its management and its Board of Directors.

NRL has various committees to ensure corporate oversight and governance. At the apex level we have the Management Audit Committee and Risk Governance Committee. The internal audit set up conducts unit level audits to ensure compliance to lay down norms and suggests improvements.

NRL has a Sustainability committee which is headed by an Independent Director, along with Director (Fin), Director(Tech) and other members who are entrusted with responsibility to finalize SD projects, allocate budget, review & monitor the progress to ensure completion.

NRL has taken a significant step in its quest to enhance transparency and re-iterate its commitment towards good governance by signing the Transparency International India, to implement the Integrity pact. This initiative is a major step in bringing in good Corporate Governance and Transparency in all spheres of contracts and dealings with business partners.

Company has also adopted several procedures, processes and systems such as the “Code of Conduct”, “Code of Corporate Disclosure Practices” to create an environment that protects and serves the interest of all stakeholders. Code of conduct requires that our employees and contractors are honest and responsive in interactions they have with government agencies or regulators. We work with governments and non-governmental organizations on increasing transparency of revenue flows from our sector to the host governments.


Corporate Profile

Name of the Reporting Organization Numaligarh Refinery Limited

Sector Oil and Gas

Products Liquefied Petroleum Gas (LPG), High Speed Diesel (HSD), Aviation Turbine Fuel (ATF), Superior Kerosene Oil (SKO) and Motor Spirit (MS)

Key Markets India

Ownership Public Sector Unit

Site office Numaligarh Refinery Limited District: Golaghat, Assam, India

Registered office

Numaligarh Refinery Limited 122 A, G.S. Road, Christianbasti Guwahati

Managing Director Shri Dipak Chakravarty


Board of Directors:

Shri Dipak Chakravarty – Managing Director

Shri Nilmoni Bhakta – Director (Finance)

Shri S.R. Medhi – Director (Technical) [w.e.f. 04-11-2011]

Shri J.P Rajkhowa – Independent Director

Shri H.S. Das – Director

Shri Partha Sarathi Das – Director [upto 07-08-2012]

Shri V.L.V.S.S. Subba Rao – Director [w.e.f. 07-08-2012]

Shri S.K. Joshi – Director [upto 31-08-2011]

Shri K. K. Gupta – Director

Shri B.K. Datta- Director [w.e.f. 24-10-2011]

Shri N.M. Borah – Director [upto 30-04-2012]

Shri S. K. Srivastava – Director [w.e.f. 26-07-2012]

Shri Jatinderbir Singh – Director [upto 18-06-2012]

Shri R T Jindal – Director [w.e.f. 02-07-2012]

Management Team:

Mr. Amit Mohan Prasad, IAS - Chief Vigilance Officer Mr. A. K. Bhattacharya - GM (Mktg., BD & CP) Mr. B. Ekka - GM (HR) Mr. D. Ghosh - GM (Operation) Mr. M. R. Baruah - GM (Tech. Services & Project)


Mr. S. K. Barua - GM (Finance) Mr. A. K. Senapati - DGM (Fire & Safety) Mr. A. P. Chakraborty - DGM (Projects) Mr. D. Choudhury - DGM (Commercial & Legal) Mr. Gunindra Nath Sarma - DGM (Maintenance) Mr. N. Borthakur - DGM (Co-ordination) Mr. P. K. Barua - DGM (Finance) Mr. Pankaj Kumar Baruah - DGM (Maintenance Planning)

Development and Management of our People

We fully understand that In order to achieve our strategic objectives, it is crucial to attract and retain sufficient and competent employees. We believe in adapting to the changing industrial environment while keeping in mind the aspirations of our workforce. Our recruitment policies are intended towards developing a vibrant pool of knowledge assets. Our policies and practices help to create a workplace where employee well being and opportunities for career growth go hand in hand.

Sustainability Committee

Sustainability committee at NRL primarily comprises of four members - Mr Nilim Kumar Borthakur, CM(HSE); Mr Pallav Kumar Das, SM(SD and R&D); Mr Pranab Kumar Sarma, Manager(CSR) and Ms Babika Deori, DM(TS). Their roles are primarily monitoring and implementation of economic, social and environmental projects.

Recruitment and Induction

Recruitment in Management Cadre is usually made at the entry level for fresh graduates who are keen to join NRL as Graduate Engineer Trainees/ Management Trainees. Jobs are advertised in leading Local and National dailies. The applicants qualified in the written test are called for appearing in personal interview. The finally selected candidates are offered to join NRL as Engineer Trainees/ Management Trainees. Mid level recruitment in Management Cadre is usually resorted for the specialized areas when suitable internal candidates are not available.

The recruitment in Non-management cadre is made through notification to the local employment exchange. The qualified sponsored candidates were subjected to written test followed by personal Interview for the final selection.


NRL does not follow any form of indirect recruitment process for selection of its employees. To expose the fresh recruits of the company to know about Numaligarh Refinery Limited, they are put through an Induction Training Program. Our various induction training programs are custom made to provide inputs for start-up and exposures on work culture, organizational structure, corporate vision and ethics, etc. We have a policy to select personnel at Middle Management and Top Management also. However, it is restricted based on need basis only.

Training and Development

At NRL, we believe that human resources are our greatest assets. We continuously endeavor to build competencies in our employees to help them attain brilliance in all spheres of life. We understand that excellent individuals make excellent companies and by transforming each employee into a highly motivated and inspired team member, we will create an outstanding organization. The company is focused at retaining the vast talent pool of employees.

Human Resources

As on 31st March, 2011, total employees strength was 841 of which 434 belong to the unionized category and 407 to the executive cadre.

NRL considers human resource as its greatest asset and is constantly in the pursuit of creating a workplace that energizes the team to build the foundation for the future. It also understands that a motivated and inspired team can create an outstanding organization.

The Company continues to have the best practices and processes to operate in an environment of trust, transparency and team work which encourages innovative thinking and has been endeavoring to build competencies in employees to help them attain excellence in all spheres of activities. NRL is also focusing on building specialist skills and multiple cadres in the organization to support its goals and aspirations. Towards this end, several thousand man-hours of training were imparted to the employees to help them garner new knowledge and skills in their respective areas of specialization.

The Learning Centre located inside the refinery premises acts as a learning ground for the employees by conducting various skill development programs on a regular basis on different subjects. Employees are also sent to various training programmes in specialized institutes in the country and abroad for improving their skills in their respective areas.

During the entire year of 2011-12, the number of hours that was spent for training purposes was 1220. This included 897 hours of training hours for the Management staff and 323 hours for the Non-Management staff. During this year, the training man-days worked out to be 1.5 hours for each employee. This forms the benchmark for NRL’s future outlook.

Stakeholder Engagement

Stakeholder engagement is an integral part of NRL’s business strategy. NRL engages in constructive dialogue with various stakeholders making them an integral part of NRL’s success. Below is a list of stakeholders which NRL has identified.

► Shareholders & Lenders ► Government & Regulators ► Employees ► Industry Associations

► Business & JV Partners ► Communities ► Dealers & Distributors ► Contractors & Contractual Labor


► Customers ► Suppliers

► Academic Institutions ► Media

We at NRL have adopted a diversified and customized approach towards engaging with stakeholders. This is because we have a diverse group of stakeholders mostly due to the kind of operation we perform. NRL ensures that it engages with each of the stakeholder groups at different levels in the organization. As we are a Public Sector Unit (PSU) with the Government of India (GoI) as a major shareholder, we engage with various Ministries and Regulatory bodies at corporate level on different issues including but not limiting to company performance, product pricing, new projects, and industry regulations. We interact with all of our shareholders at corporate level through various forums like Annual General Meetings, Investor meets etc. Employee engagement is one of NRL’s core strengths, which has helped achieve business excellence. Various formal and informal engagement channels are used to address the concerns of employees while meeting their expectations. We engage with employees regarding key decisions of the company including NRL’s business strategy. NRL also engages with senior management and union representatives for the same. NRL has a focused channel of interaction with its customers, suppliers and regulatory bodies.

We also engage with communities and NGO through organization wide initiatives. We focus on local issues and adopt a suitable engagement model benefitting the local communities. In order to enhance our engagement with stakeholders, we have adopted a focused approach by engaging specific employees on the agenda of Sustainable Development. The constructive dialogue process with our stakeholders has provided us with key insights on the prioritization of material issues which are of mutual interest to both our stakeholders and the company.

NRL is guided by the principle of materiality in order to identify and prioritize the issues of concern to our stakeholder groups and company. The Board of directors is responsible for providing business strategy and the future roadmap to NRL. Concerns and expectations of various stakeholder groups are also taken into account while formulating the roadmap for the Company.

NRL has taken up measures for formulation of a process to identify and prioritize material issues relevant to the sustainable development agenda. NRL plans to identify material issues by considering the inputs from business strategy and roadmap, directives from Government and regulatory authorities and various stakeholder groups by 2014.

Stakeholder Group Touch Point Priorities

Shareholders and Lenders

Annual General Meetings - Annual Reports - Investor Meets - Quarterly Earnings Reports - Press releases - Online section for 'Investor Relations'

- Return on investments - New ventures - Effective and efficient governance - Sustainable and long-term growth - Transparency

Employees

- Individual Performance Appraisal - Employee Satisfaction Survey - Trainings and workshops - Employee recognition activities - Employee welfare schemes - Online communications etc

- Performance-based progression opportunities - Healthy work environment - Job security and safety - Competitive salary and benefits

Government and Regulatory authorities

- Memorandum of Understanding : Targets and Communication - Meetings on Ministry directives and policy development

- Compliance - Current or Emerging regulations


Industry Association - Industry Meets - Lobbying with the Government through industry associations

- Policy Developments - Regulation - Adapting best practices within the sector

Customers

- Annual Customer Meets - Personal meetings - Online communication regarding products - Contact centers - Customer satisfaction surveys - Product campaign

- High-quality service and responsive customer support - On-time delivery - Safety and privacy - Product pricing

Suppliers - Vendor Meets - Inspection visit to Facility - Communication via e-mails and phone calls

- Product Quality - Compliance to NRL's values and directives - Product Pricing

Business & JV Partners

- One on one meets - Business Review Meetings

- Business Performance - New Partnerships - NRL's strategy and future project Plans

Community

- Community needs assessment - Direct and indirect feedback from local communities - Participation and investment in community events - Focus group discussions to address specific community issues

- Local livelihood creation : Job creation, local hiring and competitive wages - Health and Safety Awareness - Addressing needs of the community through participative action

Dealers & distributors - Dealer Meets - One on one meetings - Grievance addressal mechanism

- Compliance to NRL's directive - Product availability - Health and Safety - Customer grievance redressal

Contractors

- Contractual Procedures - Contractors Meet - Trainings and workshops - Awareness session on Health and Safety - Health Check ups

- Skill development - Compliance to NRL Norms - Competitive wages - Health and Safety of the workmen

Media - Press conference - Telephone or conference calls - Interviews with the management

- Strategy - Milestones - Business Plan - New announcements

Academic Institutions - Meetings - Visit to the Institutions - Interviews

- Recruitment of fresh talent

For more information on NRL’s Governance, Commitments and Engagement, our stakeholders are requested to refer our Annual Report (http://www.nrl.co.in/pdf/NRL_Annual_Report_21082012.pdf).

http://www.nrl.co.in/pdf/NRL_Annual_Report_21082012.pdf)


Sustainability Framework

THE NEED In today’s competitive market scenario addressing social, environmental and economic responsibilities are not only a part of but also define organizational ethics which are important for an organization to possess, build and extend market dominance

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OUR VISION

To be a vibrant, growth oriented energy company of national standing and global reputation having core competencies in Refining and Marketing of petroleum products committed to attain sustained excellence in performance, safety standards, customer care and environment management and to provide a fillip to the development of the region

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Introduction

NRL’s long term success has solely depended on responsible stewardship towards environment and community in which she operates. The following points highlight a glimpse of our organizational sustainable initiatives.

► Our presence has delivered immeasurable sustainable benefits. Since inception we have delivered on commitments made.

► We have not only adhered to our organizational core values but also have created values for our

shareholders in a sustainable way minimizing all feasible operational impacts thereby promoting social, environmental and economic sustainability by working collaboratively with employees, communities prioritizing health and safety of the workforce over production and profits.

► Our evolving business has always been in line with society’s expectations with our practices

aligned with international leading standards continually improving on our social, environmental and economic impacts.

Environmental Sustainability Framework

It is worthwhile to mention that this refinery was conceptualized as one of the most environment friendly refineries in the country. Right from Inception, conscious efforts have been made at every stage to preserve the environment complying with the statutory norms prescribed by authorities concerned. The following specific tasks have been performed by NRL from time to time.

► Emissions of gases and particulates associated with combustion processes


► Consumption of water and impacts on water quality

► Steps taken to assure that there is no adverse impact on the nearby Kaziranga National Park

► Promotion of the Butterfly Valley – a 15 acre park to support ecosystem of endangered butterfly species.

Some of our recent initiatives

► We adopt new and appropriate technologies to minimize the impact of our activities on the Environment.

► The company has engaged itself in the bioremediation of oily sludge. As a result of

bioremediation, the existing microorganisms can increase in numbers when oily sludge and wastewater effluent sludge (the contaminants) is present. When the contaminants are degraded, the microbial population naturally declines.

► Initiative in the safe and systematic disposal of canteen and horticultural waste in the Refinery

premises. ► We consistently monitor Ambient Air Quality Standard in all the five locations including one at the

Kaziranga National Park as per NAAQMS-2009. ► NRL is going ahead to conduct a carrying capacity study. It is related to regional environmental

including air, noise, water, land, biological, and socio-economic environment. ► We are also planning to implement the Rain Water Harvesting system in our facility.

► As a step towards monitoring and control of Fugitive Emissions and recovery of stored volatile

liquids, installation of double seal in few tanks located inside refinery & NMRT is in progress in phase wise manner as per the latest MoEF notification.

► A new LED (Light Emitting Diode) based online display board for environment monitoring has

recently been installed at the Refinery Main gate. All the major parameters like effluent quality, stack emission quality, ambient air quality, quantity and type of hazardous waste including the heavy metal content etc. is displayed for public viewing.

Climate Change & Energy

Today, climate change is a global concern. It is a challenge for governments, communities and industries irrespective of developing or developed countries. Strategies and immediate actions are necessary to combat climate change. It has been internationally acknowledged that globally we must aim to stabilize global carbon dioxide concentrations in the range of 450 parts per million in order to avoid the most severe impacts. Hence, establishing binding commitments for all developed and major developing economies for reduction in emissions is really important.

National and regional policymakers are considering a variety of legislative and regulatory options to mitigate greenhouse gas (GHG) emissions. Simultaneously, it is also important to understand the


effectiveness, scale and cost of these options including their implications on economic growth and quality of life. At NRL, we pay special attention to the climate change rules and regulations as laid by the regulatory bodies from time to time. We have invested in low GHG emitting technologies and the same has been registered with the UNFCCC as a CDM Project. This project generates carbon credits. These principles are intended to minimize overall costs to society of reducing GHG emissions, to determine technologies that best meet consumer needs and to recognize that long-term policies align with national priorities and with evolving knowledge.

• To ensure that consumption is reduced and investment choices favor low-carbon alternatives • To return aggregate revenues raised to individuals and businesses impacted by the carbon

price • To cover the broadest possible range of both carbon emission activities and low-carbon

energy options ensuring maximum possible emissions reduction

Our Approach

► We work with experts to improve understanding of the full life cycle of our products and strategies for effectively reducing GHG emissions from our production

► We maintain leading practices in energy and operational efficiency to deliver savings in emissions and costs that deliver tangible reductions in GHG emissions

► Year on year NRL has increased fuel efficiency by reducing carbon emission. NRL has encouraged employees for reduction of vehicular emission by going for vehicular emission test, energy conservation awareness campaign, etc.

► We develop and maintain inventories of GHG emissions that include sources of emissions aligned with the Intergovernmental Panel on Climate Change.

► Our operations implement and maintain energy and GHG management plans that include GHG emissions baseline, evaluation and implementation of energy reduction and GHG reduction projects

NRL is committed towards maintaining the fragile ecological balance in and around the refinery and has

been dedicatedly adopting environment friendly measures like adopting green and clean technology, latest technologies for lowering carbon emissions to name a few – D. Chakravarty (Managing Director)


Oil & Gas Conservation Fortnight 2012

Numaligarh Refinery observed “ Oil & Gas Conservation Fortnight” 2012 in a befitting manner with a fortnight long program involving a hoard of activities /program with the participation and involvement of wide cross section of people .Theme of this year’s ‘Oil & Gas Conservation Fortnight’ was kept same "Save Fuel yaani Save Money "by PCRA looking at wide response by Industries. The fortnight long program was ceremonially inaugurated on 15th January'12 where employees joined and pledge was undertaken by the gathering.

As a part of the observance of Oil & Gas Conservation Fortnight various programs and activities were taken up by NRL to spread the energy conservation awareness. Attractive banners with the theme of the Fortnight and different Oil & Gas conservation slogans were displayed at different strategic locations. Leaflets and booklets on Oil & Gas conservation tips and message received from PCRA were distributed to NRL employees as well as to local residents, vehicle owners, truck drivers/operators, school students and general publics.

From 17th Jan’12 to 21st January’12 a joint ‘Furnace efficiency & Insulation effectiveness for Heaters’ were carried out as a step of energy conservation by the technocrats nominated by the Oil & Gas companies as per the guidelines of Centre for High Technology, a Autonomous Body under the Ministry of Petroleum and Natural Gas, Govt. of India.

On 18th Jan’12, one cycle rally was organized flagging off from Panka Rup Ram Hazarika High School, Telgaram as an awareness campaign on Oil & Gas Conservation with participation of large number of students and youth of nearby locality putting up banners with conservation message and logos. Many children displayed hoarding in their cycle with slogan on the topic. The Rally started and flagged off at RupRam Hazarika High school by revered ideal teacher of Panka ME School. This was followed by an Art and Essay competition with the theme reflecting in their work organized at the same venue for those children to spread the message of awareness of Oil & Gas Conservation who would be the tomorrow’s architect of the society. Around 160 students from few High & ME Schools of nearby locality participated in these programs. The best performers in the competitions were suitably judged and awarded during the concluding function and token gift distribution done to all the participants as well.

Participation was overwhelming and their Art work and slogans were displayed during the closing function of OGCF’12.

On 28th January, a workshop on saving and judicious use of Fuel like –kerosene and LPG was organized at Srimanta Sankar School at Bishnupur which was attended by around 100 housewives/ladies of nearby locality where the judicious usage of LPG and Kerosene in kitchen in particular and other form energy which including the use of electrical appliances in day to day activities in general were discussed .Quiz competition was held among the house wives and on the spot prizes were also awarded. The house wives interacted with the NRL members on various energy savings tips and the program turned out to be a great success.

Apart from the above, various competition like slogan, suggestion, essay in the field of oil & gas and energy conservation were organized amongst the employees of the Refinery also members of greater NRL family including CISF.

Lastly at the end of the fortnight a closing meeting was organized in NRL on 31st January 12 at 10.30 AM. Ch. Manager, Technical Services-HSE, N.K.Borthakur welcomed the gathering and gave the welcome address. General Manager, Sri Manash Ray Baruah graced the occasion and in his august speech inspired the audience with his motivational words about Oil and gas conservation broadly. Mr. A Chakraborty, DGM (P) and Sri A K Senapati, DGM(F&S) delivered speech on energy conservation


to the large gathering. Taking opportunity of the occasion, we have awarded the winners of the first round of thought suggestion scheme which was launched during OGCF’10. Also as a step towards awareness for energy conservation through renewable means, we have displayed a Solar cap during the closing function. The principal of the solar cap is that it operates on sunshine and the fan spins once sunrays fall on the solar panel attached to the cap. An environment friendly utility and amazing cooler in the summer at free of cost.

At the closing function of OGCF’12 prize winning students along with their teachers were invited to the function. Prizes were handed over by GM (TS) among the gathering to encourage and honor the winners. For the competitions held among the Refinery fraternity, prized were delivered to individuals with due recognizing to their effort. Many valuable suggestions were received as entry which were suitably judged and awarded during the fortnight function. Fortnight was ended with the vow assuring to continue the efforts for conserving oil & gas throughout the year.

Identified Projects

In compliance with DPE guidelines, some of the projects which have been identified by NRL are:

► Reuse of storm water, contaminated water – This is a four year project of 2800 Lakhs INR value with target date of completion in 2015-16.

► Generation of 100 kWh by installing a solar panel – The project is targeted to be completed by 2013-14.

► Reuse of treated effluents to ensure “zero discharge” of effluents from the refinery. This is an ongoing project.

Social Sustainability Framework We at NRL are aware of the fact that the ongoing process of economic reforms is irreversible and the challenge of change on all facets of business and environment is inevitable. Therefore, human well being and the society is the driving force behind doing business at such a large scale. We have both initiated and sponsored a host of social initiatives such as providing relief to upgrading skill and productivity of the beneficiaries.


Our Approach

► NRL is committed to respecting the rights of employees, contractors and host communities. We respect the traditional rights of Indigenous peoples and acknowledge their right to maintain their culture, identity, traditions and customs. In our operations we encourage cultural sensitivity and recognize, respect and value sites, places, structures and objects that are culturally or traditionally significant.

► We have been realizing sustentative results through a series of value added development

endeavors pertaining to the social and economic upliftment of the people around us. ► We are committed towards improving the quality of life in the nearby region and of the local

community in particular. In line with our corporate vision, we reach out to people in remote villages with our community development programs.

► It has been our constant endeavor to minimize the impact of our activities on the environment by

employing the best available pollution control techniques. ► Besides developing relief and succor, we focus on capability development of the beneficiaries in

various genres like self employment, education, health, infrastructure and a multitude of social activities.

Strategy & Governance

Strategy & Analysis

The financial year 2011-12 was challenging for the petroleum refining sector world-wide. Euro Zone debt crisis, the tsunami in Japan, unrest in the Middle East and North African countries contributed to


unprecedented volatility in crude as well as product prices. Global developments during the year had a negative impact on demand, particularly over auto fuels.

In India, during 2011-12, economic growth moderated significantly over that during the previous year. Gross Domestic Product (GDP) grew by 6.5% in 2011-12 compared to a growth of 8.4% in 2010-11. The index of Industrial Production (IIP) growth in 2011-12 declined sharply to 2.8% from 8.2% in the previous year. Growth in the manufacturing sector was a mere 2.5% compared to a robust growth of 7.6% in 2010-11.

The country’s refining capacity as on 1st April, 2012 increased to 213 MMTPA compared to 193 MMTPA a year ago. Production of petroleum products increased to 204 MMT in 2011-12 from 196 MMT in 2010-11. On an overall basis, in 2011-12, growth in consumption of petroleum products improved to 4.9% against 2.3% in the previous year. Growth in diesel consumption during the year increased to 7.8% from 6.8% but growth in petrol consumption sharply declined to 5.6% from 10.7% in the previous year.

Notwithstanding the slowdown in the rate of growth of GDP, there is strong belief that India’s potential remains intact. It is expected that the inherent strength of the economy would in the long run script a major growth story for India. This presents opportunities towards favorable market conditions for refining companies like NRL.

A major concern for NRL arises from inadequate availability of crude oil in the North Eastern region due to which, the Company has to restrict its capacity utilization. This concern is compounded with the constraint of sub-economic refinery size at 3.0 MMTPA. In order to mitigate such challenges, NRL has drawn up a plan for expansion of refining capacity from 3.0 to 8.0 / 9.0 MMTPA by processing imported crude oil. Towards this objective, a crude oil pipeline is envisaged to be constructed from Dhamra port in Odisha to Numaligarh. Actions have been initiated for carrying out feasibility studies for the refinery expansion and route survey for the crude oil pipeline.

A major risk for the company arises from uncertainty in refining margin from volatility in crude oil and petroleum products in the international markets. In addition, NRL’s profitability is influenced by Government policies like other oil companies in the country.

Despite risks and challenges, NRL has been availing available opportunities to ensure sustained profitability and growth. The Company has taken the initiative of utilizing natural gas as fuel and feed in lieu of Naphtha. This particular initiative has not only improved distillate yield but has reduced operating costs, thereby improving refining margin.

Governance

Good Corporate Governance results in corporate excellence by ensuring that the powers vested in the executive management are exercised with care and responsibility to deliver sustained and long term value to a Company’s stakeholders. In NRL, there has been a constant endeavour to adopt best governance practices. The interest of all stakeholders including shareholders, employees, customers and the Government are kept in view while taking commercial decisions. The Company has been sharing information with shareholders through press releases, Annual Reports and official website.

NRL is a Government Company under section 617 of the Companies Act, 1956 by virtue of being a subsidiary of Bharat Petroleum Corporation Limited (M/s BPCL), a Government company. In terms of the Articles of Association of the Company, the number of Directors shall not be less than three and more than fifteen. As on 31st March 2012, the Board of NRL comprised three Whole Time (Executive) Directors including Managing Director, one part time (Ex-officio) Director representing the Ministry of Petroleum and Natural Gas, one Independent Director, one part time Director (Ex-officio) Director


appointed by Oil India Ltd. and five part time (Ex-Officio) Directors appointed by promoters, i.e. BPCL (three) and Govt. of Assam (Two).

NRL’s Board has adopted a ‘Code of Business Conduct and Ethics’ for its Directors and Senior Management. The overall affairs of the Company are monitored and reviewed regularly by the Board and various Board sub-committees with an objective to ensure transparency in governance and adherence of the Code of Conduct across the organization.

The two main committees of the Board are: Audit Committee and Remuneration/HR Policies Committee. Besides, the Board is assisted by other committee such as Standing Committee for Tenders, Standing Committee for release of flats, Share Transfer Committee, Committee of Functional Directors and Sustainable Development Committee.

NRL is in the process of implementing a Risk Management Charter during first quarter of 2012-13 which will enable the Company to adopt a defined process for managing risks on an ongoing and continual basis. Being a Public Sector Undertaking, NRL falls under the purview of audits and checks by the Comptroller and Auditor General (CAG) of India. The checks are stringent and conducted at regular intervals.

NRL is committed to maintaining an effective system of internal control for optimum utilization and protection of resources, speedy and accurate reporting of financial transactions and compliance with prevailing rules and regulations. NRL has put in place a well defined organization structure, authority levels and internal guidelines for conducting business transactions. Use of latest Information Technology and ERP solution in business processes further enhances a seamless exchange of information and control.

The Company has a full fledged Internal Audit department with cross-functional experts which conducts audits on business processes on regular basis. The Audit Committee of the Board regularly reviews significant findings of the Internal Audit Department through meetings held with the Management, Internal Audit and Statutory Auditors and takes appropriate action on the findings and recommendations. NRL has signed an Integrity Pact program with Transparency International, which is strictly followed during the tendering process to ensure transparency in commercial transactions.

Sustainable Development: Core of Strategy & Governance

Sustainable development (SD) is the heart of our business ensuring viability and the lasting benefits our business brings to the society. We aim to balance economic, environmental and social considerations in managing our business. We have a separate Corporate Social Responsibility Policy and the same is monitored from time to time to review the same. Our businesses are governed by a SD Framework.

The company primarily looks forward to attaining a sustainable growth path by employing the following ways and means.

► Undertake socially beneficial programs for community welfare and sustainable Policy ► The company would be guided by the “Triple Bottom Line” approach ► To ensure gender sensitivity, skill enhancement, entrepreneurship skill development and

employment generation by co-creating value with local institutions/people. ► Allocate 2% of the previous year’s Profit After Tax ( PAT), as its annual CSR budget ► Managing risk and reducing costs ► Attracting and retaining the best people


► Develop and manage the GHG emissions so that the same can be tracked and further strategy for a low carbon transformation can be attained

Our experience shows that environmental and social performances are the critical factors for working through complex operational issues. Hence, a holistic and sustainable business strategy is essential to realize values for our stakeholders. The following discussion highlights our business contributes to sustainable development.

Opportunities for NRL

► NRL has completed a decade of successful operations with sustained profitability. Notwithstanding formidable challenges on several fronts, the Company has grown and diversified leveraging on available opportunities. The most important asset of the Company is its team of dedicated employees committed to achieve excellence in all spheres of business activities.

► NRL today enjoys unstinted support from its stakeholders - the promoters, the Central and State Governments and the public in general.

► The Company has built an adequate resource base to finance various Value Added Projects

aimed at achieving consolidation and growth.

► NRL is planning to diversify into power generation by leveraging local resources namely natural gas for which a pipeline from Dhuliyajan to Numaligarh has already been built under a joint venture (JV) company named AGCL.

Identified Weaknesses of NRL

► A major threat for NRL (with three other refineries operating in the region) lies in their profitability being driven by excise duty benefit. While NRL has drawn up plans for improving profitability through implementation of several Value Added Projects during course of the next few years, any measure to reduce excise duty benefit before implementation of the planned projects could threaten the Company’s viability.

► The Government has recently reduced customs duty on crude, MS and HSD besides reducing excise duty on HSD. Such measure has adversely affected profitability of the North East refineries, including NRL. Further, NRL’s funding capability for value addition through identified


projects is likely to have an additional impact of interest due to higher dependence on borrowed funds.

► Inadequate availability of crude oil is an area of persistent concern for NRL that is unlikely to be addressed easily unless the possibility of processing imported crude oil is explored in right earnest. In this context, NRL has mooted a plan for importing 5.0 MMTPA of crude oil through a new pipeline from Paradip / Dhamra port to Numaligarh with simultaneous expansion in refining capacity from 3.0 to 8.0 MMTPA. Demand projection for petroleum products during the 12th Five Year Plan within NRL’s existing supply envelope adequately supports the capacity expansion plan in terms of product absorption. Should the expansion plan materialize, NRL would achieve economic scale of operation during the course of the next few years and this would pave the way towards achieving enduring viability of the Company.

Our Approach

► Identification, assessment, management and communication of risk are the basis of our approach to sustainable development. Our management ensures operational risks to be kept as low as reasonably practicable. Hence, we pursue a precautionary approach of embedding risk management processes into our business systems. This initiative is mainly data and technically based.

► At NRL all our employees act in accordance with our organizational code and business requirements hence complying with applicable laws and regulations. Our suppliers, contractors and partners also need to strictly adhere to our requirements. All these initiatives make their best efforts to drive out corruption in business and organizational decision making.

► Regular reviewing of performance, setting targets and accomplishing them is an essential stepping stone towards overall continuous development. Hence, focusing on efficient use of resources, maximizing utilization simultaneously reducing pollution are essential parameters towards meeting sustainable development targets.

Commitment to Individual: People

NRL from its inception has always been committed in recognizing and harnessing the unique skills, experiences of each and every individual of the organization. Safety, health and well-being of our employees, contractors and communities are the key parameters for the success of our business. Fitness for work is a key parameter to a sound employee health. The wellbeing of the people who work at our operations, projects and offices and their ability to perform to the best of their ability is fundamental to the successful delivery of our strategy. Hence, we are committed to reduce the potential of health risks within our workplace and communities.


Our Approach

► At NRL we have strictly adhered to the policy of offering employment on the basis of merit of an individual, job-related skills, qualifications, abilities and aptitudes only. We publish the recruitment advertisement in the newspapers and thereby ensure that everyone is given an equal opportunity at work.

► We conduct regular health and safety camps at the Refinery to make the employees aware of the

several facets of health and safety measures. ► We have got separate safety manual, fire manual and On-site emergency manual for the rules and

regulations to be followed at the site. ► Health and safety of our people have never been compromised till date. Our efforts have always

been to create a mindset and environment for working safely and without illness as we have always recognized the importance of being fit for work. We also support programs such as medical assessments, fatigue management programs etc. dealing with significant employee and community health and safety issues impacting our business and workforce.

► Our system implements exposure control programs for existing operations and also for new

projects to prevent potential consequences of exposure. We continuously monitor the effectiveness of the controls.


Triple Bottom-Line Approach of NRL

CATEGORY PROJECT FOR 2013-14 PROJECT TILL DATE

SOCIAL

ü Power loom / Handloom Project ü Mushroom cultivation in nearby Morongi

Block by Self Help Group. ü Project “SwaNirbhar” for promotion of

livelihood for educated unemployed youth in areas around the Refinery.

ü Project “Xhoka” for empowerment and restoration of Dignity of person with disabilities.

ü Incentives for girl students of schools within 10 km radius of the refinery (Scheme: "Prerana").

ü Project “Poichonota” for providing sanitation facilities to B.P.L. families within 10 km radius of the refinery.

ü Medical mobile camps 200 nos. to be carried out during the year in villages within 5 KM radius of the Refinery (Scheme: Niramoy).

ü Project Affected People (PAP) policy for rehabilitation.

ü Boat clinic named “NUMALI” has been sponsored by NRL to the Centre for North East Studies and Policy Research (C-NES).

ü “Gyanyatra” scheme for sponsoring educational excursions of students and teachers of nearby schools.

ENVIRONMENT

ü Implementation of Flare Gas Recovery System.

ü Installation of double roof seal in 05 nos. of IFRT/EFRT.

ü Bioremediation of oily sludge (min 250MT). ü Construction of Secured Landfill ü Solar energy generation potential study at

Refinery and Township.

ü Bioremediation of around 700 MT of oily sludge.

ü Installed Secured Landfill Facility (SLF) for safe and systematic disposal of hazardous oily sludge.

ü Monitoring of air quality through Air Quality Monitoring System (AAQM).

ECONOMIC (R&D

PROJECTS)

ü Implementation of Flue Gas Treating Unit (FGTU) demonstrative project in Sulphur Recovery Block for Commercialization.

ü Reuse of storm water, contaminated rain water, ETP effluent treatment through Reverse Osmosis process, Contaminated Rain Water Stream treated through Reverse Osmosis.

ü Implementation of 100 KWH Solar Power Project and synchronization with CPP for production of electricity.

ü One 12 MW STG installed for captive power generation. The project got registered as CDM project.


Business Performance Numaligarh Refinery Limited (NRL) was set up at Numaligarh in the district of Golaghat in Assam in accordance with the provisions made in the Assam Accord signed in 1985. It has been conceived as a vehicle for speedy industrial and economic development of the region. Unlike other parts of the country, running a refinery in North-East is fraught with challenges on diverse fronts. The primary challenge emanates from locational disadvantage, leading to logistical bottlenecks. There is also the challenge arising from lack of ‘industrial inertia’ that tends to impede industrial growth. NRL has so far been processing crude oil from the North Eastern oil fields and its crude procurement prices are linked to the international market. Therefore, price volatility in international market influences NRL’s crude procurement prices as well. However, being a well-head refinery, NRL is fairly insulated from supply disruptions. The North East refineries, in particular, are sensitive to changes in duty structure of crude and petroleum products. In June 2011, government reduced Customs Duty on crude oil, MS and HSD by 5%. This measure is not expected to have significant impact on profitability of other refineries in the country processing imported crude. However, it has seriously affected profitability of the North East refineries, including NRL processing only domestic crude.

NRL’s refinery at 3 MMTPA capacities is sub-economic in size. Even at such sub-optimal size, NRL has to operate below its installed capacity due to inadequate availability of domestic crude. On the other hand, importing limited quantities of crude for processing at NRL is cost prohibitive. In order to achieve economic scale of operations, NRL has mooted a plan for refinery expansion from 3 to 8 MMTPA by processing imported crude oil. We have summarized our business performance under the following heads. We continue to be responsible to our shareholders and have deployed strategies to face the challenges posed by the industry. We are poised to meet the challenges of future through the evolution of our Business. We strengthen our commitment to procure goods locally, if equivalent products and services are available. One of our core focus areas is to embed the principle of responsible development into our business processes and each of our Business Units has laid out plans to contribute to this corporate philosophy. We continue our commitment to employee welfare as we firmly believe that the provision of adequate social security to employees is vital to the stability of an organization. We have renewed our commitment of contributing to the social and economic upliftment of the regions we operate in, by careful evaluation of our ongoing development activities including hiring from the local communities we operate in.

Financial Results During 2011-12, our Company recorded the highest ever sales turnover (Gross) of INR 14075.58 Crores against INR 8997.38 Crores in the previous year, registering a growth of 56.4%. It is relevant to disclose in this context that during 2009-10 the sales turnover (Gross) for Numaligarh Refinery Limited was INR 7874.09 crores, which grew at 14.2% in 2010-11. Hence, it can be concluded that the growth in the gross sales turnover for NRL has been more than 4 folds in 2011-12 from 2010-11 in comparison to the same in 2010-11 from 2009-10. Profit before tax (PBT) during 2010-11 was INR 414.13 Crores in comparison to the PBT for 2011-12 of INR 287.46 Crores. This negative growth in PBT has mainly resulted from the increased cost incurred under the head of ‘cost of material consumed’ in 2011-12 in comparison to the same in 2010-


11. The cost of crude consumed in 2011-12 has increased almost 177% in comparison to the same for 2010-11. The PBT figure for NRL during the FY 2009-10 stands at INR 361.71 Crores which had registered a growth of 14.5% to become INR 414.13 Crores in 2010-11. The Profit After Tax figure for NRL stands at INR 183.7 Crores in 2011-12 in comparison to INR 279.26 Crores in 2010-11. Though the PAT figure for NRL registered a growth of 20.3% in 2010-11 in comparison to 2009-10, the same showed a negative growth trend in 2011-12 from 2010-11.

Sales Figures & Revenue from sales: During 2011-12 our Gross revenue generation from sales stands at INR 14004.25 Crores. The revenue generation by the company can be classified into two major segments namely revenue from sale of manufactured goods and revenue from Traded goods. In 2011-12, out of the total revenue generation by NRL, 99.5% was contributed by the sales of manufactured goods by the company like MS, Naptha, HSD, ATF, LPG etc. Assessment of product wise revenue generation shows, during 2011-12, 68.2% of the gross revenue generation by the company was contributed from the sale of HSD only. The 2nd largest revenue generating product for NRL is sale of MS which contributed in 15.2% revenue generation for the company through sales.

0.02000.04000.06000.08000.0

10000.012000.014000.016000.0

2009-10 2010-11 2011-12

Financial results/Highlights


7874 Cr

Sales Turnover (Gross)

A. Registering a growth of 56.4%in sales turnover (Gross) in2011-12 w.r.t 2010-11

B. Growth in the gross salesturnover for NRL has beenmore than 4 folds in 2011-12from 2010-11 in comparison tothe same in 2010-11 from2009-10

8997 Cr

14075 Cr

0.050.0

100.0150.0200.0250.0300.0350.0400.0450.0

2009-10 2010-11 2011-12

Profit Before Tax (PBT)

361 Cr

414 Cr

287 Cr

0.0

50.0

100.0

150.0

200.0

250.0

300.0

2009-10 2010-11 2011-12

Profit After Tax (PAT)

232 Cr

279 Cr

183 Cr

All figures in INR Crores

A. PBT in 2010-11 was INR414.13 Crores in comparisonto the PBT for 2011-12 of INR287.46 Crores

B. Negative growth in PBT in2011-12

C. Negative growth in PBTresulted from increased ‘Costof material consumed’

A. PAT figure for NRL stands at INR183.7 Crores in 2011-12 incomparison to INR 279.26Crores in 2010-11

B. PAT figure for NRL registered agrowth of 20.3% in 2010-11 incomparison to 2009-10, thesame showed a negative growthtrend in 2011-12 from 2010-11


During 2010-11 the Gross revenue generation from sales was INR 8955.14 Crores. Out of the total revenue generation by NRL, 97.7% was contributed by the sales of manufactured goods. In 2010-11 also, products like HSD and MS contributed to the major revenue generation from sales. The sales figures had shown a growth of 56.4% during 2011-12 in comparison to the same in 2010-11. NRL highlights that among its manufactured goods, the revenue from sale of Naptha has increased more than 9 folds in 2011-12 w.r.to 2010-11.

0

2000

4000

6000

8000

10000

12000

14000

16000

2011-12

14004.25 Cr

269.49 LPG

MS

ATF

Manufactured Goods

INR

Cro

res 567.67

2134.06

Naptha

46.29 HSD

MS15.91

Details of Product sold / Product wise revenue generation (Sales) break up


Traded Goods

324.66

914.03

112.02

63.55

3.40

9553.17

SKO

RPC

Sulphur

CPC

HSD

13942.05Cr

62.20 Cr

INR 13942.05

Crores

INR 62.20 Crores

2011 – 12 figures


Value of raw material & other consumables During 2010-11 the cost incurred under the head of Raw material consumption was INR 6972.8 Crores. In 2011-12 the value of raw material stand at INR 12360.4 Crores showing a 77% increase in the cost incurred. In 2011-12, 96.9% of the total raw material cost occurred under the head of Crude oil consumption. The contribution of the crude oil cost for 2010-11 out of the total raw material cost was 98.1%. In the year of 2011-12 the raw material cost Incurred was on the following 4 heads:

► Crude Oil

► Natural Gas

► Stores, spare parts and components

► Others Out of the above items, crude oil and Natural gas are sourced 100% from within India. NRL did not import any crude oil or NG during 2011-12 as a raw material in the process. On the raw material cost front, INR 11988 Crores was incurred on behalf of crude oil and 119 Crores on the account of NG.

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2011-12

8955.14 Cr

155.68 LPG

MS

ATF

Manufactured Goods

INR

Cro

res 60.13

1336.95

Naptha

159.44

43.12

HSD

MS

Details of Product sold / Product wise revenue generation (Sales) break up


Traded Goods

174.21

738.81

97.35

39.89

1.44

6148.12

SKO

RPC

Sulphur

CPC

HSD

8752.58Cr

202.56 Cr

INR 8752.58 Crores

INR 202.56 Crores

2010 – 11 figures


0.02000.04000.06000.08000.0

10000.012000.014000.0

2010-11 2011-12

Numaligarh Refinery Limited: Value of raw material

12360.4 Cr

6972.8Cr

Value of Raw Material

6,840.34

132.45

Crude Oil MTBE and Py-Gas

Value of raw material: 2010-11

Units in INR Crores

11,988.19

253.24 119.00

Crude Oil MTBE and Py-Gas Natural Gas

Value of raw material: 2011-12

0.0

2000.0

4000.0

6000.0

8000.0

10000.0

12000.0

14000.0

Imported Indigenous

NRL: Value of raw materials, stores/spare parts and components including chemicals & catalysts consumed (on derived basis)

11988.19

Zero ‘0’

Crude Oil

Units Rs. Crores

Others Natural GasStores, spare

parts, components

105.0

110.0

115.0

120.0

125.0

130.0

135.0

140.0

Imported Indigenous

136.85

116.39

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Imported Indigenous

119

Zero ‘0’

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Imported Indigenous

0.56

12.25

11988.19

253.24 11912.81

Crude Oil Others Natural Gas Stores, spare parts, components


Proportion of Spending on Goods & Suppliers

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation

Total procurement of goods & supplies for refinery operation.

Units FY 2009-10 FY 2010-11 FY 2011-12 Type of data Documentation

Million INR 390.78 518.46 450.8 Quantitative Plant records

Total procurement of goods & supplies for refinery operation from local suppliers



Total Procurement of Goods & Supplies for Capex Projects at Refineries



Total Procurement of Goods & Supplies for Capex Projects at Refineries from Local Suppliers



Provision for Employee Benefit Gratuity: The Company has a defined beneit gratuity plan managed by a trust. The contribution based upon actuarial valuation is paid to the trust which is invested with LICI. Gratuity is paid to the Staff member who has put in a minimum qualifying period of 5 years of continuous service on superannuation, resignation, termination or to his nominee on death. Leave Encashment: The Employees are entitled to accumulate Earned Leave and Sick Leave, which can be availed during the service period. Employees are also allowed to encash the accumulated earned leave during the service period. Further, the accumulated earned leave and sick leave can be encashed by the employees on superannuation, resignation, and termination or by nominee on death. Pension: The Company has a defined contribution pension plan managed by a trust. The contribution is the differential figure of 30% of Basic + DA minus PF + Gratuity + Post Retirement Medical Scheme


and paid to the trust which is invested with LICI. Pension is paid to the Staff member who has put in a minimum qualifying period of 15 years of service on superannuation. Other defined benefits: These are non funded defined benefit obligations -

► Post Retirement Medical Scheme benefit to employees, spouse, dependent children and

dependent parents

► Long Service Award

► Resettlement allowance paid to employees to permanently settle down at a place other than the location of last posting at the time of retirement

For detailed information on the benefits provided by NRL, we request our stakeholders to kindly refer our Annual Report available online at http://www.nrl.co.in/pdf/NRL_Annual_Report_21082012.pdf.

http://www.nrl.co.in/pdf/NRL_Annual_Report_21082012.pdf


Environment & Climate Change

Strategy and Approach NRL is committed to protecting the environment and fostering sustainable development as we continue to grow and expand. Our environment, health and safety and our “Human Rights” policies are designed for our employees, suppliers and customers. We take a holistic approach to environmental sustainability by considering the environmental impacts associated with our business operations and then incorporating those considerations into our sustainability strategy and decision making processes. Health, safety and environmental issues have risen on the oil and gas industry's agenda, reflecting both increased public pressure and more complex operational challenges. We, at NRL, firmly believe in inclusive growth and expend considerable efforts towards social responsibility in all areas of our operations. We have taken several steps to develop non-conventional / renewable sources of energy and have undertaken various initiatives in tapping non-conventional energy sources like solar energy etc. Our approach allows us to evaluate, monitor and continually improve the environmental aspects of our direct operations. This helps us achieve our goal of reducing resource use and pushing efficiencies into our supply chain. Improved products and services help our customers to become more sustainable by improving safety and minimizing energy.

We have divided our climate change journey into three phases spread over ten years and wish to strategically align ourselves in the same fashion. We are in the first phase of the journey, where we are trying to achieve the goals laid down in the first phase. NRL has an environment management

1 - 3 Years

• Energy and carbon performance management programme• Regional climate models identify key site adaptation mitigation

requirements• Business units assess product market risks and opportunities• Working with government and industry for responsible carbon

policies• Evaluate biodiversity carbon offset potential

3 - 6 Years

• Carbon trading used to maximize revenue generation• Climate adaptation measure designed into business plans• Low-carbon technology partnership with our key stakeholders• Carbon offset projects implemented

6 – 10 Years

• Partnerships with stakeholders on carbon reducing projects• Embed carbon and energy savings culture in the workforce

Be

Dis

cipl

ined

Be

Proa

ctiv

eB

uild

resi

lienc

e

§ Carbon and energy savings § Climate adaptation – risks

and mitigation plans § Business unit assessment of

product risks and opportunities

§ Maximize revenue generation§ Business unit action on

product risks and opportunities § Stakeholder partnerships on carbon savings

§ Carbon offset projects deliver commercial benefits § Adaptation measures

embedded against key climate risks § New product/market

opportunities are accessed

1

2

3

Our Climate change journeyContinuous improvement and asset optimization

Piloting new techniques and technologies

Breaking new Ground


plan in place. We are working on carbon emissions and have a Registered CDM Project also. We do the impact assessment of our major projects as well. So, NRL is in a basic stage of environment management where we comply with all the norms and conduct risk assessment for most of our activities. We have plans to be leaders in the fields of environment management. We plan to undertake projects which are more energy efficient than the conventional technologies. We understand that stringent regulations may come from bodies such as Bureau of Energy Efficiency in the form of PAT. NRL therefore would like to align itself into these regulations. Further, we see the possibility of National trading of emissions. NRL plans to be at the forefront of all the future possible mechanisms wherein it ably meets all the requirements and sets itself as a benchmark company. We see possible revenue generation schemes from these mechanisms as well. Our long term plans include becoming a pioneer in the Oil & Gas Sector and setting a benchmark for all the other companies of the same sector. Climate change is a globally accepted phenomenon, and has been accepted at all levels, from government to top corporate houses alike. Being an energy company, addressing risks and opportunities arising from various aspects of climate change is vital for our business. With India stating its willingness towards accepting legally binding emission reduction targets, impending climate change related legislations will pose a challenge to our operations towards increasing energy efficiency. The company’s Management is very careful and proactive regarding the environmental impacts of the new initiatives and products. We conduct the Environment Impact Assessment of every project to understand the implications of setting up the plant or unit. Our commitment to protecting the environment includes actions to eliminate oil spills, improve energy efficiency, reduce waste and pollution and optimize facility design to minimize negative environmental impacts from our operations.

To reduce the environmental burden in our operations, we are taking measures for improving efficiency of our processes. This also ensures optimal use of energy resources. Enhanced energy efficiency reduces cost, has a positive impact on climate change and stimulates innovation across operations that help us in performing better. Our total energy consumption in FY 2011-12 was 5843 GJ, which is significantly lower than the energy consumption in the years 2009-10 and 2010-11.

CPP ETP


Carbon Management Drives – CDM Initiatives Steam Turbine generator: One 12 MW STG installed for captive power generation utilizing the waste pressure energy across the steam pressure reduction valve as well as the waste thermal/heat energy of surplus high pressure (HP) steam generated from various processes in the Refinery. This project got registered as a CDM project in 2008 for emission reduction by 41888TCO2e per annum for 10 years crediting period down the line. FGRS: As a measure for environment protection and to reduce the GHG emission resulted from burning of the flared hydrocarbon gases, it is intended to install a flare gas recovery system at the refinery site. NRL has taken approval from Board for implementation of Flare Gas Recovery System as a project which would be pursued as a CDM project. NRL closely monitors the emissions from its operations. We have been able to achieve reduction in the absolute amount of emissions due to our internal Management practices and the initiatives taken forward at the site. We request our readers to refer the Appendix section of the report for information on calculation of emission. The figure below shows the direct emissions emitted by Numaligarh Refinery Limited (NRL) in the preceding three financial years.

8511.8 8133.5

5843.0

0.0

1000.0

2000.0

3000.0

4000.0

5000.0

6000.0

7000.0

8000.0

9000.0

2009-10 2010-11 2011-12

Aggregate unit

consumption of energy

(GJ/year)

Unit in of energy is in Giga Joules

8133.5 GJ

5843.0 GJ

Direct energy consumption

8511.8 GJ


Environmental Performance Records

Chemicals Used by NRL

Units Material category FY 2009-10 FY 2010-11 FY 2011-12

HCL, 30% Tonnes Associated 1282.506 92.508 1183

NaOH, 100% Tonnes Associated 437.653 33.101 463.54

Ferric Alum Tonnes Associated 148.096 17.37 186.325

Cetane Improver Tonnes Semi-manufactured 158 446 559.221

Total Tonnes -- 2026.255 588.979 2392.086

Total Raw Materials

Category Units FY 2009-10 FY 2010-11 FY 2011-12

Total Crude Processed

TMT 2619 2250.2 2825

Total Associated Process Materials

Tonnes NA NA NA

Py Gas Tonnes 17,701.21 15,508.52 1,174.70

MTBE Tonnes 9,167.66 11,286.16 19,814.75

HDPE Bags Nos. of 50 Kg capacity HDPE Bags 6,74,635 11,09,019 10,90,450

626455 t CO2

596399 t CO2

677178 t CO2

677178.0

626455.0

596399.0

540000.0

560000.0

580000.0

600000.0

620000.0

640000.0

660000.0

680000.0

700000.0

2009-10 2010-11 2011-12

Total emissions at NRL (tCO2/year)

Unit in of energy is in Tons of carbon dioxide per year

Secondary emission for NG consumption has been excluded.


In 2010-11 FY, refinery was under shutdown for initial 4 months (approx) due to Diesel Quality Up-gradation Project (DQUP) job. Caustic is mainly used for washing of LPG and in ETP. HCL is mostly used in ETP and DM Plant. Ferric alum is mainly used for coagulation in Raw Water Treatment Plant. During FY 10-11, consumption of all these chemicals was less due to the above reasons. On the other hand consumption of Cetane Improver was high as lot of Straight Run Diesel from CDU/VDU was upgraded to marketable diesel since HCU was not in operation during initial period of start up.

Oil Recovered from Sludge

Units FY 2009 - 10 FY 2010 - 11 FY 2011 -12

Tonnes Nil 210.09 862.89

Slop Re-processed

Units FY 2009-10 FY 2010-11 FY 2011-12

Tonnes 25122 143007 36838

Total Energy Savings

Units FY 2009-10 FY 2010-11 FY 2011-12

GJ 15.4791 76.26 541

Note: Please refer Appendix for calculation on energy savings for FY 2011-12

Average Flow Rate of Stack Flue Gas

Temp (ºC)

Ts (degree Kelvin)

Vs, (m/s)

Radius (m) As (m2) Qs (m3 / hr)

CDU 148 0.707838 4.8 1.37 5.893466 72085.62841

DCU 170 0.672686 5 0.925 2.686663 32531.05564

MSP 180 0.657837 5.3 0.825 2.137163 26824.64466

H2U 175 0.665179 6.5 1.275 5.104463 79451.87032

HCU 1&2 215 0.610656 6.5 0.98 3.015656 43091.74676

HCU 3 210 0.616977 5.4 0.97 2.954426 35435.49555

UB 100 0.798928 5.2 0.8 2.0096 30055.42675

HRSG 110 0.778068 6 1.75 9.61625 161613.2585

The following equation is used to calculate the stack gas volumetric flow rate:

Qs = 3600 x Vs × As x (1 – Bw) × (Tref / Ts) x (Ps / Pref) Qs = volumetric flow rate (m3 / hr) Vs = flue gas velocity (m / s) As = Cross section area of the stack (m2) Bw = Proportion by volume of water vapour in stack gas.


Tref = 298 (degree Kelvin) Ts = Absolute stack gas temperature (degree Kelvin) Pref = 760 (mm) Ps = Absolute stack gas pressure (mm)

Solid Waste Management

► A solid waste disposal yard for proper disposal and management of the solid waste generated from plant maintenance and other activities, developed in-house, has been implemented.

► Bioremediation of around 700 MT of oily sludge by applying “oil zapper” with adopting technology from TERI carried out successfully.

► An incinerator is in operation for managing waste as part of the solid waste management which is the first among the north-east refineries.

► NRL has installed a Secured Landfill Facility (SLF) for safe and systematic disposal of hazardous oily sludge as per NEERI’s recommendation.

► Installation of another SLF of around 6000 m3 capacity as per CPCB recommendation is in progress.

Environmental Expenditures

13253066.4

7196414.3

12836473.8

0.0

2000000.0

4000000.0

6000000.0

8000000.0

10000000.0

12000000.0

14000000.0

2009-10 2010-11 2011-12

Figures in INR

INR Million 7.20

INR Million 12.836

INR Million 13.25

Environmental expenditures

Investment & Costing

The environmental expenditure is a sum of expenditure towards waste disposal, emissionstreatment, remediation costs; and prevention and environment management.


We are determined that NRL will be a safer, more risk-aware business. Our processes and systems include identifying and managing environmental and social impacts and risks of certain type of projects. Increases in efficiency have the potential to reduce the overall amounts of energy used and hence the carbon that is emitted globally, without inhibiting economic growth. We undertake measures in waste disposal, emissions treatment, and prevention of environment management. Expenditure is also incurred towards celebration if World Environment Day at the plant site, where the importance of conservation of environment is demonstrated.

Water Management We place a lot of emphasis on the water consumption at site. We monitor the consumption of water at the Refinery along with the water discharge. During our FY 2011-12, we withdrew sixty seven lakhs forty nine thousand seven hundred and eighty four cubic meters (6749784 m3 ) of water. Majority of the water is sourced from surface water. Ground water is an alternate water source for Numaligarh Refinery Limited. However, the same is limited to emergency purposes only and is not utilized during normal times of operation. Water reusing has been the key to NRL’s survival over the years.

The increase in surface water withdrawal over the last three years has been mainly due to increase in township construction activities, new project construction work etc. This increasing trend is also in line with the increase in throughput of the unit and crude processed in the refinery over previous years. At NRL, 100% of water is reused.

5063145.05653503.0

6349784.0

0.0

1000000.0

2000000.0

3000000.0

4000000.0

5000000.0

6000000.0

7000000.0

2009-10 2010-11 2011-12

Unit in of water withdrawal is in m3

5653503 m3

6349784 m3

Surface water withdrawal

5063145 m3


Wastewater Discharge At NRL, no wastewater has been discharged since 2005. Treated water from the ETP is reused as fire water makeups, for green development activities etc.

Waste Management: We consider our self a responsible entity and practice this principle all across its locations. We dispose the waste as secured landfill after complying with all the regulatory norms and the mandatory standards as have been laid by the State Pollution Control Board and the Ministry of Environment and Forests, Government of India.

The table below shows the type and the amount of hazardous waste NRL produces and the method by which it is disposed off.

Air Emission Management The company is very proactive in the fields of air emissions management. We focus on managing our air emissions and have a specific framework designed so that the air emissions can be minimized.

44.0

72.783.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

2009-10 2010-11 2011-12

72.7 Tonnes

83 Tonnes

44 Tonnes

Total Non-Hazardous Waste Disposal (Tonnes)

Total Non-Hazardous Waste Disposed

► Bio-Sludge is the non-hazardous component which is disposed through securedlanfills at NRL.

Waste type Units Nature of waste Method of disposal FY 2009-10 FY 2010-11 FY 2011-12

Spent catalyst(MT) Tonnes HazardousAuctioned through M/s MSTC Ltd., Kolkata through SPCB/ CPCB approved customers

119.08 169.99 149.19

MS Drums sold (210L) Nos HazardousAuctioned through M/s MSTC Ltd., Kolkata 1550 5000 3351


NRL is equipped with an Ambient Air Quality Monitoring System (AAQM) where the air quality is monitored. NRL intends to bring out the air emissions to as low as possible.

Note: SOX was the major constituent in the reported amount of air emissions.

New Environmental Initiatives

Conservation of non-renewable energy: As a part of non-renewable energy conservation, solar powered street lights & water heaters at NRL Township, battery operated vehicle and battery operated platform for lifting & carrying of equipment inside the plant area is under implementation.

Rain Water Harvesting: NRL is implementing a scheme of reusing of around 8000 m3 of water as rain water harvesting. Total catchment area is around 5800 m2 covering various locations inside refinery.

Bioremediation of oily sludge: Bioremediation of around 700 MT of sludge by applying “Oil zapper” completed.

Online real time data: NRL has successfully developed software for linking of online analyzer data to CPCB server.

Bio Gas Plant: Bio Gas Plant has been commissioned for utilizing canteen and horticultural waste generated in the refinery.

Total recycle of storm water & contaminated rain water: The project would enable to achieve “Nil” discharge of storm water from its premises and reduce the intake water. The project is under implementation.

795.77

899.56

838.46

740.00

760.00

780.00

800.00

820.00

840.00

860.00

880.00

900.00

920.00

2009-10 2010-11 2011-12

Total air emissions by weight (in tonnes)

Air Emissions by weight

►All Stacks are having online PM analyzers installed in it.► PM values are obtained in terms of PPM only


VOC Recovery facility at ETP: The project would enable to monitor and control of VOCs to be generated in ETP. This is as a step towards monitoring and control fugitive emission where 90% of total VOC shall be removed in this system.

Additional Secured Landfill Facility: Installation of additional SLF as per CPCB guidelines in progress for safe and systematic disposal of hazardous waste.

Installation of Double Seal in IFRT/EFRT Tanks: Phase wise installation of double mechanical seal in IFRT/EFRT tanks in progress as a step towards fugitive emission control as per the MoEF notification.

Recognitions and Standards

We are the recipients of the 12th Environment Award for outstanding work in the Environment Sector by Green Tech foundation in 2011-12. NRL has already won this award in 2002-03, 2003-04 and 2004-05. We have also been awarded the Jawaharlal Nehru Award for Energy Efficiency. In the Environmental Management Front, NRL has been upgraded from ISO 14001:1996 to ISO 14001:2004.


Human Rights Our belief that all human beings are born free and possess equal rights is reflected in the way we do our business. We are committed to protect the human rights of not only our employees but also our vendors, suppliers, customers etc. We provide equality by prohibiting any distinction in the enjoyment of human rights on grounds such as race, color, sex, language, religion, political or other opinion, national or social origin, property, birth or other status. Our operations are consistent with the fundamental Rights, legal principles as laid down by the constitution of India and the relevant labor laws. Our HR Policies have evolved with the changing legal and business requirements and the aspirations of the people. We also ensure that the grievances of our employees are resolved in a transparent fashion. There is a formal whistle- blowing mechanism duly approved by the Board of Directors in Sept. 2010. The company has a separate policy on whistle blowing and is given due importance at the site. At NRL, there have been no complaints of discrimination on the basis of caste, sex, religion, political opinion, HIV infected etc. involving internal/ external stakeholders. If such a thing happens, NRL has a separate policy for noting it and acting in accordance with it.

To ensure equal rights to everyone who contributes to the organizational growth, we ensure that contractor’s workers are paid above the state mandated minimum wages and ensure compliance to applicable social security laws for our permanent and contractual workforce. We always carry out Environmental Impact Assessment before any major project is undertaken. All the rules and means as regulations as suggested by the Ministry of Environment and Forest in India is taken care of in this regard. NRL understands the requirement of compliance to the national laws and since this is a basic requirement, we comply with all the regulations.

Child Labor We understand that the future of our country India lies in the hands of our children. It would be a gross mistake to employ children to work in our operations. Therefore, to ensure their growth from aspects of mental, physical, educational and other fronts, we refrain from employing them in our


operations. We ensure that no child labor is employed or permitted to work in any of our establishments. The minimum prescribed age for seeking employment in NRL is 18 years and we have very effective mechanisms to eliminate child labor in the jobs done. At NRL, we have a robust gate pass system which strictly prohibits child labor in our organization. As per a special clause in the general terms and conditions of all our tenders, the bidders are required to submit a written declaration that they do not engage child labor.

Employment We support the Government of India’s efforts in development of minorities and economically underprivileged sections of the society. We have made provisions for recruitment of a certain percentage of our workforce from the SC, ST and OBC categories to uphold our commitment to affirmative action. Our recruitment policies, are exactly in line with the regulations as laid by down by the Government of India. In the reporting period, no significant risk for incidents of forced or compulsory labor has been identified in our operation.

Employment of Women

Being a PSU, NRL refers to the guidelines of Government of India (GOI) for maintaining adequate number of women employees. The company also follows directive of the GOI regarding prevention of sexual harassment of women employees at workplace. NRL has a policy for handling all the grievances related to the issue of Human Rights, employee rights, ethics through bilateral discussion between the management and the unions representing contract workers.

Organizational Security

Protecting employees and facilities from sabotage, criminal acts, any forms of attacks is one of NRL's top priorities. We have deployed the Central Industrial Security Force (CISF) to prevent and handle security risks and crisis situations, ensuring that the rights of neighboring communities are respected. In order to keep our security personnel equipped, periodic training sessions are organized. All our security personnel are trained in NRL’s policies or procedures concerning aspects of human rights relevant to NRL’s operations. These training sessions are made mandatory for all CISF members. Our strong security system has resulted in zero corruption incidents in NRL in this reporting cycle. They are also responsible to keep NRL free from any form of child labor, forced or compulsory labor.


Product Stewardship

Customer satisfaction is the ultimate aim for NRL. Due to the large variety of our products, we have a broad spectrum of customers; therefore our organization has devised multidimensional channels of gauging customer satisfaction of our products and services. Product quality and safety is intricately embedded in our operations and we adhere to all applicable regulations regarding product labeling and transportation. NRL looks forwards to develop core competencies in refining and marketing of petroleum products with a focus on achieving international standards, maximizing wealth creation for meeting expectations of stakeholders and contribute towards the development of the region. We monitor and mitigate impacts and risks associated with the use of our products throughout their life cycles, including during stages outside of our control. Our focus on product stewardship, along with good practice helps to reduce the regulatory burden. We monitor legal and regulatory changes that have potential impacts on our products and operations. Our priorities are to work with customers to reduce emissions, promote the safe use and disposal of our products, and prolong the life cycle of products.

Products

The main products of our Refinery constitute light distillate, middle distillate and heavy ends. The adjoining figure is a graphical representation of the product portfolio of NRL. The graphs below indicate Middle Distillates as the major constituent.

LIGHT DISTILLATES

LPG

MS

Naptha

Product Profile: NRL 2011 – 12

Product Portfolio: NRL MIDDLE

DISTILLATES

HEAVY ENDS

ATF

HSD

SKO

RPC

SULPHUR

CPC


The exhibit gives a detailed break-up of the major products of NRL where MS in Light Distillates, HSD in Middle Distillates and RPC in Heavy Ends are found to be the major constituents of the respective product portfolio for the company. All the figures mentioned in the diagram below are in TMT.

Technology Absorption

At NRL, we have taken initiatives to introduce latest technologies for upgrading the products in line with Auto Fuel Policy of Government of India (GOI) and have taken up the following projects:

► Implemented and commissioned the Diesel Quality Up-gradation Project (DQUP) by revamping the existing Hydro cracker and Hydrogen units along with associated facilities.

► Enhancement of capacity of existing Sulfur Recovery Unit (SRU) by using Oxygen Enrichment Technology where oxygen enriched waste nitrogen stream from nitrogen plant has been used for increasing the capacity of the existing SRU in order to cater to higher load requirement.

► Started using Natural Gas as fuel in GTG and as feed and fuel in Hydrogen unit by replacing Naphtha and also as fuel to refinery process furnaces replacing fuel oil partly.

► Implementing a wax extraction unit along with the associated utilities to extract wax from the Assam crude oil processed by the refinery. The technology selection has already been done for the project.

96 (31%)

32 (10%)185 (59%)

LIGHT DISTILLATES

LPG NAPHTHA MS

313 (11%)

2258 (75%)

99 (3%)

330 (11%)PRODUCTS

LIGHT DISTILLATE MIDDLE DISTILLATEHEAVY ENDS F&L

132 (6%)270 (12%)

1856 (82%)

MIDDLE DISTILLATES

ATF SKO HSD

50 (51%)44 (45%)4 (4%)

HEAVY ENDS

RPC CPC SULPHUR

Product Profile: NRL


In the reporting period, there have been no incidents of non-compliance with regulations and voluntary codes concerning product and service information, labeling and marketing communications, including advertising, promotion and sponsorship.

Research and Development (R&D)

Specific areas in which R&D is being carried out by the company includes the followings:

► Production of Euro-IV MS from existing unit by innovative blend optimization.

► Utilization of surplus naphtha by converting to MS with blend optimization.

► Process optimization study to maximize distillate from CDU.

► Pilot study for production of needle coke with RFO as feed stock based on preliminary study for mesophase formation with RFO.

► Optimization of process variables and feed preparation for production of value added product Needle Coke.

► Study for SRU tail gas treating with the help of SOR (SO2 recovery process), in technology partnership with EIL & IIP.

Safe use and disposal of products

Hazard is defined as any existing high potential condition in the work place, which by itself or by interacting with other variables, can result in unwanted effects of death injury, property damage and other losses. The word "safe" means uninjured, out of danger or not exposed to danger. "Safety" is the state of being uninjured or keeping oneself uninjured. Product safety means safety from all associated dangers or hazards associated with the product life-cycle. NRL strongly believes that Safety, Health and Environmental performances are integral part of its business and accordingly commit to carry out all activities connected with refining, storage, dispatch and marketing of petroleum products up to customers’ premises with the highest concern for preservation of the Environment and Safety & Health of all concerned. In the reporting period, there have been no incidents of non-

Sulphur Recovery Unit Refinery Main Facilities


compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle.

NRL organizes periodic trainings and campaigns making employees aware on issues related to organizational and product safety. NRL also held quiz competition to see employee’s product safety knowledge.

We inform all our relevant employees, contractors, customers and other stakeholders about the hazards associated with the handling, transport, use, storage and disposal of our products. For every product, we produce materials safety data sheets that give details of its composition, toxicology relating to human health and the environment, fire and explosion risks, handling, storage and exposure issues and recommendations for managing spills and disposal.

Hydrocarbons are highly flammable in liquid state, an explosive in gaseous state when mixed with air in certain proportion. Refinery & marketing installation, where large quantities of hydrocarbons are handled in complex processes, storage's transfer & loading facilities are the major accident prone zones. Common hazards associated can be classified as:

► Release or leakage of Material from containment.

► Vaporization & mixing with Air.

► Ignition leading to Fire or Explosion causing loss of life & damage to properties.

Functional Excellence Milestones

NRL acknowledges the need to reduce the greenhouse gas emissions from its operations and is working to develop the technologies needed to do so. As a responsible corporate citizen, Numaligarh Refinery has given utmost importance to the abatement of pollution and preserving flora & fauna with vision of excelling in environment management.

Periodic Training & Campaign on Safety


Since inception, the refinery has been at the forefront in adopting policy initiatives to comply with all norms and standards encoded in statutes, applicable codes of practices, relevant guidelines, OISD standards etc. apart from its own policies and manuals, making it an environment friendly and ecologically compatible modern refinery. In its quest for environmental excellence and continual improvement, NRL has been pursuing a focused program towards environment protection through well-defined objectives and has taken up several initiatives that are being implemented in a systematic manner.

NRL’s achievements have been wide-ranging and in all spheres of operations. NRL implemented fully functional ERP software even before the actual start of its operations. In its journey into the realm of excellence, new milestones have been achieved. NRL achieved the following three coveted certifications at one go in the year 2002. These certifications were revalidated in 2005.

ISO 9001:2000 for Quality Management System

ISO 14001:1996 for Environment Management System

OHSAS 18001:1999 for Occupational Health & Safety Management System

NRL has now upgraded itself in Environment Management System and has certified itself against the latest versions of the standards i.e. ISO 14001:2004. Many awards and recognition have come NRL’s way in its journey in pursuit of environmental excellence.

► Awarded Green Tech award for environmental excellence in 2002-03, 2003-04 & 2004-05

► Green Tech Award for safety for 2004-05 & 2005-06

► Awarded the Jawaharlal Nehru Centenary Award for Energy Efficiency for the year 2004-05

► Greentech Safety Gold Award 2008

► Oil & Gas Conservation Award 2008 instituted by Centre for High Technology, MoPNG


On the retail front NRL was awarded:

î The prestigious POPAI OMA Silver Award for Retail Outlet design and facilities under the category ‘Automobile-Permanent’ for the year 2006.

î Petroleum Conservation Research Association (PCRA) has adjudged NRL as the 1st prize winner under PCRA ‘Award for Excellence’ in the Medium project category for the Energy Conservation for the year 2004-05.

The collective efforts and dedication of NRL’s employees have made these achievements and awards possible for NRL. In the reporting period, there were no significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

GREENTECH ENVIRONMENT AWARD 2011GREENTECH ENVIRONMENT AWARD


Social Sustainability Performance

We consider ourselves as a responsible citizen and we adhere to our duties sincerely. NRL's presence is contingent on its ability to apply the highest possible social standards. So, we make a sustainable contribution to improving the living conditions for our employees in plant and also in the neighboring communities where we operate. This we perform by complying with all legislations and regulations and by applying the principles set out in our Code of Conduct. Corporate Social Responsibility (CSR) of NRL is as per DPE guidelines. Project Affected People (PAP) policy for rehabilitation is being developed as an internal policy and is not related to any local government/authority. In the reporting period there have been no significant fines and zero non-monetary sanctions for non-compliance with laws and regulations.

Corporate Social Responsibilities

Carefully planned, zealously executed and sensitively nurtured, NRL’s community development initiatives have a holistic approach. NRL mainly focuses on the capability development of the beneficiaries in various genres like self-employment, education, health, infrastructure and a multitude of social activities. NRL has always contributed to the economic and social development of the community. NRL has contributed in good measures for the social and economic uplift of the community from the inception of the refinery. NRL has also protected the environment since it started operation. It has made all endeavors to minimize impact on environment and society by employing the best available pollution control techniques. To establish itself as one the environment friendly economies, NRL has taken a step forward by housing its employees in a township to make them understand the invaluable importance of ecology and environment. The objectives of CSR in NRL are as follows:

► To be a good and conscious corporate citizen. ► To make untiring efforts to improve the quality of life and socio-economic scenario with

special attention to the people residing in the vicinity of the refinery. ► To improve, protect and preserve the environment. ► To stand high on ethical standards. ► Review services and incorporate required changes

Periodic surveys cum social audits are being carried out to assess impact of community development programs & projects implemented from time to time on nearby Refinery population. Periodicity is generally every 3 years. One such social audit survey was carried out in 2006-07 and other in 2009-10 .Both social audits were conducted thru Centre For Development and Peace studies, Guwahati center. The survey covered program areas: Agri-allied, Assistance to Educational Institutions, Infrastructure development, Community Health and promotion of sports /culture and literature.

The survey covered about 251 households in 40 neighboring villages revealed that awareness level of target group about NRL’s CDP has risen from 69% in 2006-07 to 94% in 2009-10. NRL’S educational assistance recipients’ institutions has raised from institutions have risen from72.5% to 95%. Beneficiaries under drinking water programs have risen from 29% to 46.2%.Benficiaris under piped water projects have increased from 6%to 11.6%. Semi concrete /concrete building dwellers increased from 12% to 23.9%. Major ailments prevalent in population in 2006-7 were stomach disorder about 30% has come down to 3.2% population in 2009-10.

For the development of the society as a whole and especially for the economically downtrodden, NRL has identified agri-allied income generation activities, education, infrastructure development, community health and promotion of art, sports, literature and culture as major thrust areas. Models for


community development are conceived, sifted, garnered and implemented by means of a well defined mechanism which, interalia also prioritizes the extent of underdevelopment, need and feasibility while selecting the projects. Officers from various departments act as the hub and constitute the steering committee which scrutinizes proposals, monitors activities while ensuring full and proper utilization of the budgeted amount.

Projects are identified and developed in close liaison with the district administration, local public bodies, recognized voluntary organizations and apex committees. Proposals are then routed for approval through the steering committee which deliberates weekly to review the status of under-implementation and new schemes. The committee members periodically pay site visits, gathering on site information while removing bottlenecks, if any. The committee generates a monthly report giving financial details and proposals for the annual budget. While scheduling the implementation of various schemes, due weight age is given to local opinions.

NRL’s CSR schemes are not only proactive but remunerative in tangible terms. NRL’s benevolence has been useful in supporting schemes that lead to indirect employment and economic independence of the local youths. Giving a fillip to agro-based activities has been NRL’s priority.

► Projects are identified and developed in close liaison with the district administration, local public bodies, recognized voluntary organizations and apex committees. Proposals are then routed for approval through the steering committee which deliberates weekly to review the status of under-implementation and new schemes. The committee members periodically pay site visits, gathering on site information while removing bottlenecks, if any. The committee generates a monthly report giving financial details and proposals for the annual budget. While scheduling the implementation of various schemes, due weightage is given to local opinions.

► NRL’s CSR schemes are not only proactive but remunerative in tangible terms. NRL’s benevolence has been useful in supporting schemes that lead to indirect employment and economic independence of the local youths. Giving a fillip to agro-based activities has been NRL’s priority.

NRL has provided assistance to villagers of the nearby areas for setting up establishments of self-employment in the form of piggeries, poultry farms, fisheries and small handloom and handicraft units. Besides, the farmers of the nearby areas have been provided with tractors, seeds, fertilizers and pesticides in order to support them in their mission. In order to support the local unemployed youths’ vocational training is also given to upgrade their skills. NRL’s efforts have always yielded good results and have brought a general well being of people in the neighboring areas. The local farmers are now advanced enough to use modern methods of farming and their effort have brought joy among the people of the villages around the refinery as they bask in the glory of being self-employed and the realization that they too now contribute towards the economic development of the area.


NRL sponsored boat clinic launched at Majuli - The full equipped boat clinic named ‘NUMALI’ has been sponsored by Numaligarh Refinery Limited (NRL) to the Centre for North East Studies and Policy Research (C-NES) as part of its Corporate Social Responsibility (CSR), is ready for service. The boat will provide health services to the marginalized river island population of Sonitpur district as part of C-NES’ innovative Boat Clinic programme under NRHM. The inaugural function of the launch of ‘NUMALI’ was held on 11 th March 2011, near Majuli Ghat, Jorhat, the site at which the boat was built. Senior officials from NRL led by Shri B Ekka DGM (HR) and C-NES Managing Trustee, eminent writer journalist Sanjoy Hazarika were present at the launch.

NRL has funded an amount of Rs. 12 lakhs for the boat to support the boat clinic initiative in Assam. The first installment of Rs. 4 lakhs was earlier handed over by the Managing Director NRL, Dr. B. K Das to Shri Sanjoy Hazarika in September 2010.

Education: Primary Focus of NRL’s CSR Policy Education is one of the primary focus areas of the NRL’s CSR policy. From time to time, NRL adopted several innovative schemes which benefitted the local communities. NRL strongly espouses the cause of education which has been identified as one of the primary focus areas in its CSR program. One of the flagship schemes in the field of education is the annual Gyandeep, Prerona and


Dronacharya Awards, which identifies and recognizes brilliant and under-privileged children from the schools situated in the vicinity of the refinery. The Gyanyatra Scheme sponsors educational excursions of students and teachers of nearby schools to various parts of the country. NRL has also been proactive in providing necessary support by the way of renovating school and college buildings, providing lab facilities, furniture and other amenities to the schools and colleges situated in the vicinity of the refinery. Not only that, the company regularly organizes coaching and career planning counseling for the benefit of the upcoming students-the future of this state and the country.

Corruption Free Organization – Our Approach All business units in NRL are analyzed every year for risks related to corruption. In the reporting period, there has been no incident of actions taken in response to incidents of corruption. At NRL, Corporate Vigilance has made great strides in enhancing the ethical standards of the organization by encouraging sound business practices and good corporate governance through an effective balance of proactive and preventive measures.

We operate as per the guidelines of the Central Vigilance Commission (CVC) of the Government of India to manage risks due to corruption. The concept of “Vigilance for Corporate Excellence” is at the centre of all the departmental operations and a “Proactive Vigilance” approach is adopted.

In case of any allegations of corruption against a business partner or contractor company reported to us relating to a contract we have with that partner or contractor company, we will investigate and where appropriate take action. In 2011-12, as far as we are aware there were no incidents of business partners or contractor companies against whom we have taken such action.

We in NRL have resolved to improve the business system by leveraging technology and applying the modern procurement tools like Integrity pact and e-procurement either independently or through recently formed Central Purchasing Organization set up for the group refineries. This has already helped us to procure some of the items at much lesser cost then previous procurement. We have also resolved to comply with the e-payment service which is fast and convenient to both NRL and its vendor .We are making concerted effort to achieve 75% of the value of all procurement and services through e-procurement and 100% e-payment to all stakeholders in order to improve transparency and efficiency.

As a part of preventive vigilance, periodic / surprise inspections of refineries, depots and installations, retail outlets, LPG plant are carried out throughout the year. In addition, a Whistleblower Policy that contains details about formal channels of reporting incidents of corruption has been formulated.


Promoting Employment

Employees are the biggest asset of NRL. NRL has always thrived to build an organization promoting decent work. Salient features of NRL’s labor initiatives have been discussed below.

Talent Identification: Talent diversity is the key factor to actuate organizational business growth engines and sustain momentum. From its inception, NRL has always given best effort at identifying and engaging talents for sustaining growth.

Workplace Safety: Work places are monitored and assessed periodically to assure safety and hygiene. In this endeavor, NRL has conducted comprehensive risk assessment for each activity executed to identify, monitor, measure and manage identified risks at work place in a structured manner and to minimize on the impacts, achieving continuous improvements. Risk assessment is also conducted for new or modified activities, products and services.

Workforce: NRL’s workforce comprises of full-time and contractual employees. Employees of NRL undergo periodic performance feedback to build on their strengths and work on their weaknesses for better career alignments. For contractual workers, remuneration offered by NRL is higher than the normal wages. There are 2 workers union namely Numaligarh Refinery Employees Union (NREU) & Petroleum Refinery Union Numaligarh (PRUN). All the workers are members of these two unions. There is one officers' association named Numaligarh Refinery Ltd Officers Association (NRLOA). 87% percent of officers are members of the association.

Safety Committee: Occupational Health & Safety (OH&S) Committees have been set up. Each of the committee has a designated representative. The main aim of the committee is to promote OH&S initiatives at the work place and implement best possible policies minimizing the occupational risks inherent in the business. Employees are also encouraged to voice their concerns related to hazards.


Management Employees as Health & Safety Members

Year FY 2009-10 FY 2010-11 FY 2011-12

No. of Committees 7 7 5

No. of Members 52 52 49

Numbers of non-management employees are same as that of management employees as a part of health and safety members. Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advice on occupational health and safety programs is around 10%.

Members of Joint Health & Safety Committee

Year FY 2009-10 FY 2010-11 FY 2011-12

No. of Committees 1 1 1

No. of Members 27 27 49

Incident Reporting & Investigation: All incidents including near misses and accidents are reported, investigated and analyzed to prevent recurrence and to improve health and safety performance. The OH&S committee is responsible for conducting investigations finding out root causes and system failures, implementing corrective and preventive measures to reduce future injuries and loses.

Training: Training is provided to all employees, support, security staff and contract workers on HSE. Training includes awareness building, mock drills, classroom sessions, and periodic demonstrations. Incident data is tracked and analyzed.

NRL's activities help to create jobs in India. At NRL, hiring is strategic which supports NRL's expansion in growth activities. NRL cultivates diversity. Everyone, starting from managers and human resources teams to employee representatives and buyers, is involved in the diversity process.


Employee turnover FY 2011-12

Reason < 30 30-50 > 50 Female Male

Junior Management

Death-in-Service Nil NIL NIL NIL NIL Resignation 1 2 NIL NIL 3 Retirement Nil NIL NIL NIL NIL

Termination of new Recruit 1 NIL NIL NIL 1

Junior Management Total 2 2 NIL NIL 4

Middle management

Death-in-Service Nil NIL NIL NIL NIL Resignation Nil NIL NIL NIL NIL

Retirement Nil NIL NIL NIL NIL

Middle management Total NIL NIL NIL NIL NIL

Senior Management

Resignation NIL NIL NIL NIL NIL

Retirement NIL NIL 2 NIL 2

Senior Management Total NIL NIL 2 NIL 2

Workmen

Death-in-Service NIL 2 NIL NIL 2 Disciplinary Action NIL NIL NIL NIL NIL

Health Grounds NIL NIL NIL NIL NIL Resignation NIL NIL NIL NIL NIL

Retirement NIL NIL NIL NIL NIL

Workmen Total NIL 2 NIL NIL 2

In this reporting cycle, we lost two of our workmen due to cardiac illness. However, this did not result in any lost man-days. No. of contract labor in NRL's during 2011-12 is approximate 1600 people (Maintenance + Project).

GRADE WISE BREAKUP OF WORKFORCE FY 2011-12

Designation Male Female Male Female Male Female

Senior Management Nos 11 - 10 - 12 - Middle Management Nos 80 3 86 3 103 3 Lower Management Nos 267 27 259 27 260 29

Workers Nos 425 7 425 7 425 9 Total Nos. 783 37 780 37 800 41

Total Employees 820 817 841


Presently, 653 workers are working in one time job (time bound) on temporary basis and 1074 workers are working in permanent contract.

Contract Labor (Man-hours)

Units FY 2009 - 10 FY 2010 - 11 FY 2011 - 12

Hours (Safety training only) 31696 51504 48760

Hours (First aid training only) 228 282 900

SAFETY PERFORMANCE

Category Unit FY 2009-10 FY 2010-11 FY 2011-12

Reportable injury Nos. Nil Nil Nil

Lost days Nos. Nil Nil Nil

Near misses for direct employees Nos. 18 18 44

Near misses for contractual employees Nos. 6 5 16

First aid cases for direct employees Nos. 3 3 1

First aid cases for contractual employees Nos. 13 25 15

Minor injuries for direct employees Nos. 2 Nil Nil

16.66 17.6420.85

0

5

10

15

20

25

2009-10 2010-11 2011-12

Contract Labors (Lakh Man Hours)

15

7

26

0

5

10

15

20

25

30

2009-10 2010-11 2011-12

Graduate EngineerTrainees

13.22

15.715.18

2009-10 2010-11 2011-12

Average Training Hours (Direct Employees)


Minor injuries for contractual employees Nos. Nil 1 Nil

Injuries for direct employees Nos. Nil Nil Nil

Injuries for contractual employees Nos. Nil Nil Nil

Fatality for direct employees Nos. Nil Nil Nil

Fatality for contractual employees Nos. Nil Nil Nil

Lost days for direct employees Nos. Nil Nil Nil

Lost days for contractual employees Nos. Nil Nil Nil

Lost days excluding fatalities for direct employees

Nos. Nil Nil Nil

Lost days excluding fatalities for contractual employees

Nos. Nil Nil Nil

Total man-hours worked for direct employees

Nos. 2.09 Million Man Hour

2.09 Million Man Hour


Total man-hours worked for contractual employees

Nos. 3.81 Million Man Hour



Meetings of Workforce Represented in Formal Joint Management-Worker Health & Safety Committees

Meetings of Management Employees that were a part of Health and Safety Committee as

members Units FY 2009-10 FY 2010-11 FY 2011-12

Hours 520 510 490

Meetings of Non-Management employees that were a part of Health and Safety Committee as

members Units FY 2009-10 FY 2010-11 FY 2011-12

Hours 520 510 490

Meetings of Members that were part of Joint Health and Safety Committee at NRL

Units FY 2009-10 FY 2010-11 FY 2011-12

Hours 324 324 396


GRI List of Indicators


Assurance Statement


Appendix

Methodologies followed for calculation of GHG emissions from GHG activity level data

Data in Numaligarh Refinery has been reconciled as per the mass balance across the refinery. CO2 emissions associated with the combustion of fossil fuels or refined products in the Compendium are based on the conversion of 100% of the fuel carbon to CO2. GHG emission quantification is done as per the guidance given in the API Compendium 2009 for the Refinery Sector. The CO2 emission from fuel consumption in the process units are calculated as follows:

CO2 Emission from various sources Calculation Method CO2 emission from the Fuel Oil (Internal Fuel Oil) in all the process units and in Captive Power Plant

Quantity of fuel oil combusted*Carbon content of the fuel oil*Oxidation factor*(44/12) [Carbon content of FO is as per the analysis done internally in the NRL.]

CO2 emission from the Fuel Gas in all the process units and in Captive Power Plant

Quantity of fuel oil combusted*Carbon content of the FG*Oxidation factor*(44/12) [Carbon content of Fuel Gas is derived from the NRL Laboratory analysis.]

CO2 emission from Naphtha in Hydrogen Generation Unit and in Captive Power Plant

Quantity of Naphtha combusted*Carbon content of the Naphtha*Oxidation factor*(44/12) [Carbon content of Naphtha is as per the analysis done internally in the NRL.]

CO2 emission from PSA Off gas in Hydrogen Generation Unit

Quantity of PSA Off gas combusted*Carbon content of the PSA Off gas *Oxidation factor*(44/12) [Carbon content of PSA Off gas is as per the analysis done internally in the NRL.]

CO2 emission from LPG in the process unit

Quantity of fuel oil combusted*Carbon content of the LPG*Oxidation factor*(44/12) [Carbon content of LPG is derived from the NRL Laboratory analysis data]

CO2 emission from flaring Gas flared (MT/Yr) * Carbon Content *(44/12)* Flare combustion efficiency

CO2 emission from HSD consumption in owned vehicles i.e. cranes, fire tenders.

[{HSD Consumed (Litre/year)/1000* Density of HSD (kg/m3)}* { NCV of HSD (TJ/Gg)/10^6}]* Emission factor of HSD (MT/TJ) [Emission factor and NCV of HSD are taken from 2006 IPCC Guidelines for National Greenhouse Gas Inventories and Density is as per the laboratory analysis data]

CO2 emission from HSD consumption in hired vehicles.

[{Total kilometre travelled(km)*Mileage (Default Fuel economy factor) (Litre/km)/1000* Density of HSD (kg/m3)}* { NCV of HSD (TJ/Gg)/10^6}]* Emission factor of HSD (MT/TJ) [Emission factor and NCV of HSD are taken from 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Default Fuel economy factor is from GHG Protocol - Mobile Guide (03/21/05) v1.3]

CO2 Emission from the wastewater treatment process

[Wastewater flow rate (in 10^6 lit/year)*(BOD5/0.7)*(44/32)]/10^9

CO2 Emission from the LPG consumption

(Number of LPG cylinders used/per year*weight of each cylinder)* NCV*Emission factor of LPG Emission factor and NCV of LPG are taken from 2006 IPCC Guidelines for National Greenhouse Gas Inventories

CO2 Emission from product transport

Total round trip distance travelled*default fuel economy factor for road/rail


[Default Fuel economy factor is taken from GHG Protocol - Mobile Guide (03/21/05) v1.3]

Estimation of GHG sink Average carbon sink per hectare*Area *(44/12)

Assumptions required for the calculation methodologies

Carbon content of fuel oil, Naphtha, HSD is estimated from the C/H ratios (Weight %) derived from the density of the components. The density has been derived through internal sampling analysis done.

To calculate the CO2 emission from the Fuel Gas Carbon content of Fuel Gas is derived from the NRL Laboratory analysis data. Carbon content of Fuel gas is calculated based on the Weight % of the components. Since the Fuel gas used is same throughout 2009-10 and 2010-11, same carbon content is assumed for both the periods.

Carbon content of PSA off gas/flare gas is calculated based on the Weight % of the components. The weight percentages have been derived through internal sampling analysis done on a quarterly basis

Emission factor and Net Calorific Value of HSD are taken from 2006 IPCC Guidelines for National Greenhouse Gas Inventories. This has been used to calculate CO2 emission from owned and hired vehicles of NRL.

Carbon content of LPG is derived from the NRL Laboratory analysis data and is calculated based on the Weight % of the components. Since the LPG used is same throughout 2009-10 and 2010-11, same carbon content is assumed for both the periods.

Average GHG sink per hectare of plantation area is assumed based on a study. Reference: http://www.academicjournals.org/jene/PDF/Pdf2009/May/Jana%20et%20al.pdf

Energy Savings for FY 2011-12

SRFT refers to Standard Refiner Fuel Tonnes.

12939 SRFT refers to 129390000 Kcal equals to (129390000*1000*4.186) KJ i.e. 541.63 GJ.

http://www.academicjournals.org/jene/PDF/Pdf2009/May/Jana%20et%20al.pdf


Co-ordination Office: Chief Manager (Co-ordination & Finance) Tolstoy House, 6th Floor 15-17 Tolstoy Marg New Delhi – 110001, India Phone: +91 11 2373 9413 Fax: +91 11 2373 9412 E-mail: [email protected]

Site Office:

CM (HR) P.O.: Numaligarh Refinery Project Dist.: Golaghat, Assam, India PIN- 785699 Phone: +91 3776 265493 Fax: +91 3776 265800

Registered Office

GM (Marketing, Business Development and Corporate Plng.) Numaligarh Refinery Limited 122A, G.S.Road Christianbasti, Guwahati-781 005 Phone: +91 361 2203 133 Fax: +91 361 2203 146 E-mail: [email protected]



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