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Oil & Natural Gas Corpn Ltd
Industry :  Oil Drilling / Allied Services
BSE Code
ISIN Demat
Book Value()
NSE Symbol
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As on: Jul 02, 2022 10:17 PM

Dear Shareholders,

It gives me great pleasure to present, on behalf of the Board of Directors of your Company, the 28th Annual Report on business and operations of Oil and Natural Gas Corporation Limited and its Audited Statements of Accounts for the financial year ended March 31, 2021 (FYRs 21), together with the Auditors' Report and Comments on the Accounts by the Comptroller and Auditor General (CAG) of India.

Currently, COVID-19 overshadows business activity and the energy industry is inevitably affected. COVID-19 is a definitive black swan event exacting enormous human and material loss on the world. Once we overcome this mammoth challenge - which we certainly will, we shall only become stronger to face similar challenges in the future.

Energy is central to the modern society, the economy and energy landscape is changing - so is the narrative around it.

Many factors have come into play that have brought us to this fork in the road - climate change concerns, sustainability, safety, low commodity prices, efficiency, the emergence of the conscientious and aware consumer - and now COVID-19, that has brought in a whole new way of working and doing business - the ‘new' normal.

All along, our primary goals have been to keep up the healthy pace of project execution, sustain our base production, optimize operating costs and improve the value proposition for stakeholders while doing business safely and reliably. Despite attending to unprecedented challenges of the business and its surrounding environment, your Company along with its group companies has registered yet another year of sustained performance and made substantial progress on most of these priority areas.

Despite the challenges posed by pandemic, your Company's production (including JV production) during the year was 45.350 Million Metric Tonnes of oil and oil equivalent gas (MMTOE) (against FYRs 20 production of 48.248 MMTOE).

• Crude oil production including JV production was 22.533 Million Metric Tonnes (MMT) during FYRs 21 against 23.353 MMT during the previous year.

• Natural gas production including JV production was 22.816 Billion Cubic (BCM) against 24.896 BCM during FYRs 20.

Value Added Products (VAP) production was 3.120 MMT against 3.548 MMT during FYRs 20.

Backed by an intensive and continuous exploration programme, your Company declared ten (10) oil and gas discoveries (three - on-land and seven - offshore) during the year 2020-21 in its operated acreages. Out of these, six are prospects (one -on-land and five - offshore) and four are pools (two - on-land, two - offshore).

During the year 2020-21, accretion of In-place volume and EUR (Estimated Ultimate Reserves) in 2P reserves category from ONGC operated areas in India was 92.37 MMTOE and 50.31 MMTOE respectively.

Reserve Replacement Ratio (RRR - 2P EUR) from domestic fields was 1.19 with respect to 2P reserves. With this, your Company maintained Reserve Replacement Ratio (2P) of more than 1 for the 15th consecutive year.

Your Company has four direct subsidiaries, namely ONGC Videsh Limited (OVL), Mangalore Refinery and Petrochemicals Limited (MRPL), Hindustan Petroleum Corporation Limited (HPCL) and Petronet MHB Limited (PMHBL).

Your Company also has nine Associates/ Joint Ventures, namely ONGC Petro additions Limited (OPaL), ONGC Tripura Power Company Limited (OTPC), ONGC TERI Biotech Limited (OTBL), Dahej SEZ Limited (DSL), Mangalore SEZ Limited (MSEZL), Indradhanush Gas Grid Limited (IGGL), Pawan Hans Limited (PHL), Petronet LNG Limited (PLL) and Rohini Heliport Limited (RHL).

1. Major Highlights: FYRs 21

The major highlights during FYRs 21 are:

i. Revenue from operations in FYRs 21 stood at Rs 681,411 million against Rs 962,136 million in FYRs 20.

ii. Net profit in FYRs 21 was Rs 112,464 million against Rs 134,637 million (restated) during FYRs 20 mainly due to lower realisation on Crude Oil, Natural Gas and VAPs.

iii. Your Company drilled 480 wells (Exploratory wells: 100; Development and Side Track wells: 380) despite fewer Rig Months and lockdown due to COVID-19 (against 500 wells during FYRs 20).

iv. Your Company firmed up plans to create a new wholly owned subsidiary company for Gas & LNG business value chain. The said subsidiary shall engage in the business of sourcing, marketing and trading of natural gas, LNG, Hydrogen enriched CNG (HCNG), Gas to Power business, bio-energy/ bio-gas/ bio methane/ other bio fuels business.

v. Your Company acquired 5% equity in Indian Gas Exchange Ltd (IGX) as strategic investment. IGX is presently India's first and only authorized Gas Exchange which provides an automated platform for trading of natural gas, covering wide range of products. This acquisition will contribute in achieving the Government of India's vision for increasing the share of natural gas from 6% to 15% in energy basket.

vi. During lockdown, your Company undertook a massive exercise to replace its crew in offshore and onshore fields. Your Company obtained permission from the Director General of Civil Aviation to use chartered flights for changeover of crew and ensured uninterrupted operations.

vii. Long-term mix of borrowings were re-aligned during the current fiscal year.

viii. A Memorandum of Understanding (MoU) has been signed by ONGC Energy Centre (OEC) with the Union Territory of Ladakh and Ladakh Autonomous Hill Development Council, Leh on 06.02.2021 for taking up first Geo-thermal energy pilot project in Ladakh on pilot basis wherein it is planned to drill Geo-Thermal well and establish 1MW power plant at Puga, Ladakh. This project will put India on Geothermal Power map of the world.

ix. Your Company placed Notice of Award (NoA) to seven successful bidders in 13 contract areas comprising of 49 marginal oil and gas fields. This is intended to collaborate with private players for technology partnership for enhancement and augmentation of production.

x. Hazira plant supplied 3,300 KL volume of NATO Grade HSD to Indian Navy during COVID-19 pandemic on 09.05.2020 to meet an urgent requirement for Samudra Setu mission to repatriate expatriates stranded in neighbouring countries due to COVID-19 pandemic.

xi. Well Services Section (WSS) of Ahmedabad has been granted patent for novel formulation "Fracturing Fluids for Hydro Fracturing Using Sea Water" on 20.05.2020. The present Patent relates to sea water based fluid for fracturing of subterranean formation.

xii. Silchar Exploratory Asset, started gas supply to Assam Gas Company Ltd (AGCL) from 21.10.2020 post completion of Banskandi GCS (Gas Compressor Station). The Asset had further monetized the Bhubandar field on 07.12.2020 by connecting the well BU-7 to South Banskandi GCS after completing 23 km pipeline. Gas from this project will mainly be feeder to CGD network and North East (NE) Gas Grid, a part of Urja Ganga Scheme.

xiii. The Bengal basin was dedicated to the nation as 8th producing basin of India, on 20.12.2020 at Asokenagar in West Bengal. With this, your Company has discovered seven out of eight producing basins of the country.

xiv. MBA (Mahanadi, Bengal & Andaman) Basin, Kolkata commenced transportation of oil collected during reactivation of well Asokenagar-1 to Haldia Refinery on 05.11.2020. This marked the first step towards early monetization of first discovery in the Bengal-Purnea basin.

xv. Exploratory well BH-79 was drilled to explore the hydrocarbon potential of Basal Clastics and Basement. The well was tested for hydrocarbons in August 2020. After requisite study and analysis, it has been put on production. This is a significant lead towards further exploration of Basal Clastics and Basement Reservoir in Mumbai offshore.

xvi. The oil production in Lakwa area of Assam Asset crossed daily production mark of 500 m3/day in December 2020. The production milestone was reached after a gap of three years.

xvii. The use of Simultaneous Exploration (SIMEX) approach, along with development drilling in recent past in matured Kalol field, has resulted in successful finding of K-XII pay sand (outside the REC Limit) in development well KL#851 of Kalol field. After Hydro-fracturing and SRP (Sucker Rod Pump) installation, the well has been put on production from K-XII pay sand.

xviii. The oil production in Padra field of Cambay Asset has reached a level of over 330 Tonnes/ day in January 2021 - all time high production of Padra field since formation of Cambay Asset.

xix. Rajahmundry Asset produced the highest ever gas in Mandapeta field @ 0.715 MMCMD by optimizing new wells placements and hydraulic fracturing for improved productivity in tight and heterogeneous Mandapeta sands. The production reached this level after a gap of 20 years.

xx. Reservoir Analysis to establish extension of L-I Reservoir in Mumbai High South: RCI (Reservoir

Characterization Instrument) was successfully deployed in a development well RS-18#10 for sampling oil from L-I (b) pay. This was the first well wherein the presence of oil was established in L-I in Mumbai High South. Further efforts are on to establish the extent of L-I reservoir in Mumbai High south.

xxi. Tripura Asset has successfully executed a pilot project of installation and commissioning of Self-Assisted Plunger Lift (SAPL) system in five gas wells. This has resulted in cumulative improvement in gas production from the five wells by about 60,000 SCMD.

xxii. Your Company has obtained 10 patents in FYRs 21 and also applied for registration of additional 6 patents.

2. Global Recognitions - Awards and Accolades

Consistent with the trend in preceding years, your Company, its various Operating Units and its Senior Management have been recipients of various awards and recognitions, including the following prestigious awards:

a) ONGC was ranked 11th among global energy majors in the coveted Platt's Top 250 Global Energy Company Rankings 2020 based on assets, revenues, profits and return on invested capital.

b) Forbes has ranked the Company 13th largest in India and 665th worldwide in Global 2000 list based on sales, profit, assets and market value.

c) ONGC is ranked 243rd globally and 4th in India in 2021 ranking of Fortune Global 500 list.

d) ONGC is ranked 377th in Forbes list of "World's Best Employers".

Detail of such awards and accolades is placed at

Annexure- ‘A'.

3. Details of discoveries

During the FY 2020-21, your Company has notified ten new discoveries (six prospects and four pools) in acreages operated by it. Out of these, 7 are in nomination blocks and 3 in NELP block of KG- DWN -98/2. Details of the new discoveries are:

Sl. Well No.

Basin/ Block


Hydrocarbon Type

1 KGD982NA-CHN-B-1 KG Offshore DW/ KG-DWN-98/2 CL-II PML Prospect Gas
2 KU#13(KUDD) KUNJABAN PML, Tripura Pool Gas
3 KGD982NA-R1-E#1(AA) Cluster II PML of KG-DWN-98/2 Pool Gas
4 Kavitam South-1 KG onland/ PML-Kavitam Onland /PML-Kavitam Additional PML Prospect Gas
5 SD#16(SDAP) West Tripura PML, Tripura State Pool Gas
6 KGD982NA-PDM-SH-1(AA) Cluster II NELP PML of KG-DWN-98/2 Pool Oil
7 BS-17-1 Western Offshore/ West of Bassein PML Prospect Oil & Gas
8 B-126-1 Western Offshore / West of Bassein PML Prospect Oil & Gas
9 GK-28-14 Kutch Offshore/ GK-28 PML Prospect Gas
10 WO-5-13 Western Offshore / BOFF PML Prospect Oil & Gas


4. Reserve Accretion and Reserve Position

Your Company migrated to PRMS (Petroleum Resource Management System) for estimation of hydrocarbon reserves w.e.f. 01.04.2019. With this approach, during FY 2020-21, accretion of In-Place Hydrocarbons (2P), from the Company operated fields in India, stood at 92.37 MMTOE.

• 25.73 MMTOE (about 28 percent)of 2P In-place volume have been accreted from New Discoveries/prospects; and

• 66.64 MMTOE(about 72 percent) of 2P In-place volume have been accreted from field growth.

During the FY 2020-21, the Estimated Ultimate Recovery (EUR) accretion in 2P category from ONGC operated areas in India has been 50.31 MMT of O+OEG.

• 11.59 MMTOE (about 23%) of 2P EUR have been accreted from New Discoveries/ prospects; and

• 38.72 MMTOE (about 77%) of 2P EUR have been accreted from field growth.

Accretion of In-Place Hydrocarbons and Estimated Ultimate Recovery (EUR) by the Company in its operated areas and in NonOperated areas (JV Share) during FYRs 21 and position of In-Place Hydrocarbons and EUR as on 01.04.2021 were as below:

Units in MMTOE

In-Place Hydrocarbon volumes and Estimated Ultimate Recovery (EUR)

Accretion During the year 2020-21

Position as on 01.04.2021

Reserve Type

Company Operated

JV-Domestic (ONGC Share)


Company Operated

JV-Domestic (ONGC Share)


In-place Hydrocarbon































Note: EUR position as on 01.04.2021 (EUR=Cumulative Production + Reserves + Contingent Resources)

Position of Reserves and Contingent Resources as on 01.04.2021

As per PRMS#


Company Operated

JV Operated


Reserves 2P








Contingent Resources 2C









Note: As per PRMS adopted w.e.f 01.04.2019

The details of Reserve Accretion (EUR) 2P for the last five years in Company's basins are given below.

Units in MMTOE


Company Assets (1)

Company's share in JVs (2)

Total (3)=(1)+(2)






















5. Award of Blocks

ONGC, under OALP-V bidding round concluded during FY 2020-21, has been awarded seven blocks; one ultra-deep water block in Cauvery, two shallow water blocks (Mumbai and Saurashtra) and four onland blocks (two in Cambay and one each in Bengal-Purnea and Kutch onland). This has added about 12,766.09 Km2 of exploration acreage area in ONGC's exploration portfolio. Your Company is holding 24 blocks having 46,313.36 Km2 acreage area under OALP bidding rounds I to V.

All the awarded OALP blocks are currently in exploratory phase. As on 01.04.2021, in OALP blocks, ONGC has cumulatively acquired 1,543 LKM (1,233 LKM acquired during FY 2020-21) of 2D data and 6,699.49 SKM (5,179.12 SKM acquired during FY 2020-21) of 3D seismic data.

6. Enhanced Recovery (ER) Proposals

Under ER Policy of Govt. of India, your Company had submitted 23 ER proposals. Out of these, 16 proposals were approved by Director General of Hydrocarbon. For the first time, your Company executed a pilot Polymer Flood project in heavy oil field of Mehsana. The Pilot was initiated in May, 2019 and completed in September, 2020. The pilot was successful in achieving all its objectives. The incremental gain is 5,057 m3 in 13 months against FR envisaged incremental gain of 4,960 m3 in 13 Months. Commercial plan envisages incremental oil gain of 1.85 MMT (~ 5 % over BAU) and recovery 22.5 % by 2040.

7. Monetization of Discoveries

Your Company monetised a total of 12 discoveries during FY 2020-21.

Out of ten new discoveries made during FY 202021, two on-land discoveries viz. Sundalbari-16 and KU-13 have already been monetized. Besides, ten (10) other discoveries of previous years i.e. Tichna, Bhubander, Bhubander-6, Ashokenagar-1, R-13, R-9, Sundalbari-15, GS-15 E, Gojalia-1 and B-45 have also been monetized.

Monetization of Ashoknagar-1 discovery makes the Bengal basin as the eighth commercially producing basin of the country. This has resulted in up-gradation of Bengal basin to Category-I basin as per the new three tier category of sedimentary basins of India.

8. Major Projects Completed

Details of three major projects (1 Development and 2 Infrastructure) completed with an investment of Rs 33,325 million during the year 2020-21 are as below:

Sl. Project Name No.

Completion Date

Actual Cost (Rs in Million)

Oil gain (MMT)

Gas Gain (BCM)

1 Neelam Redevelopment Plan, NH Asset





2 Pipeline Replacement Project-V, Western Offshore





3 Gojalia GCS & Pipelines Project, Tripura Asset










a) Projects under implementation:

As on 31.03.2021, fifteen major projects were under implementation with a total project cost of around Rs 605,015 million with envisaged oil and gas gain of —113 MMTOE.

b) Projects Approved in 2020-21

During the year, 1 major project (Redevelopment of Nandasan Field in Mehsana Asset) was approved at the cost of Rs 4,448.70 million, with planned completion date of 10.08.2022. The Project envisages incremental production of 0.735 MMT of Oil and 0.195 BCM of Gas by the year 2036-37.

9. Drilling of Wells

Your Company drilled 480 wells during FYRs 21 (500 wells during FYRs 20). 100 were exploratory wells and 380 were development wells including side-track wells. The major reason for shortfall in drilling of wells can be attributed to the constraints emerging out of National Lockdown imposed for containment of spread of COVID-19.

• Your Company was able to complete two Ultra-Deepwater wells KGD982NA_ UD#AG (WD-2832m, DD-5536) and KGD982NA_UD#AF (DD-5450m) in KG deep water.

• Managed Pressure Drilling (MPD) was introduced in Tripura Asset.

• Rajahmundry Asset drilled 4 HP-HT wells: AVTAA, PRWAA, BTSAE and SVLAB, where bottom hole temperature varied between 174C to 195C.

10. Oil and Gas Production

Details of production, sales quantity and value, product wise during FYRs 21 with comparison of FYRs 20, are as under:



Production Qty.

Sales Qty.

Value (Rs in million)

FYRs 21

FYRs 20

FYRs 21

FYRs 20

FYRs 21

FYRs 20

Crude Oil (MMT)







Natural Gas (BCM)







Value Added Products (VAP)
Liquefied Petroleum Gas 000 MT







Naphtha 000 MT







Ethane-Propane 000 MT







Ethane 000 MT







Propane 000 MT







Butane 000 MT







Superior Kerosene Oil & MTO 000 MT







Others* 000 MT







Sub Total (VAP) 000 MT











*Others include ATF, Sulphur-F Sulphur-C, LSHS, HSD, LDO and MTO

11. Production from Overseas Assets - ONGC Videsh Ltd

Your Company's overseas operations are carried out exclusively through its wholly owned subsidiary, ONGC Videsh Limited (OVL), which in turn conducts its operations either directly or through its subsidiaries. Production from overseas assets during FYRs 21 was 13.039 MMTOE in comparison to 14.981 MMTOE achieved during FYRs 20; a decrease of approx. 13%. The oil production during FYRs 21 was 8.510 MMT; 12.8% less compared to the production of 9.755 MMT during FYRs 20. The gas production of 4.529 BCM during the year was 13.3% less compared to FYRs 20 production of 5.226 BCM. The production was mainly impacted by compliance to production cuts agreed upon by the host governments of OFEC+ group of countries in Russia, UAE, and Azerbaijan. Geopolitical situation had also impacted production from two projects in Venezuela viz. Sancristobal and Carabobo-1. Other key factors affecting overseas production include natural decline, early water breakthrough in Block 06.1, Vietnam, COVID-19 impact on drilling schedule and deferment of Capex activities; and optimization of Capex and Opex due to low oil price scenario.

12. COVID-19 and ONGC's response

Your Company was one of the first companies to roll out COVID appropriate protocol. It kept an emphasis on the protection of people, materials and resources and at the same time ensured continuity of exploration in onshore and offshore and production operations.

During lockdown and non-availability of flights, railways and road transport, ONGC carried out Operation Nishtha - the biggest roll over of crew for Offshore rigs, platforms and installations through creation of bio-bubbles and hubs.

ONGC reached out to every stakeholders in different parts of the country to make available basic amenities during pandemic and contributed Rs 3,000 million to PM Cares Fund. ONGCians also voluntarily contributed Rs 300 million from their salary.

Along with erosion of demand due to pandemic, there was crash in crude oil prices, which required rolling out a sustainable survival strategy to meet all operational needs with available cash.

13. Other Exploration Initiatives/Activities

a) National Seismic Programme (NSP)

To accomplish its mandate of 2D seismic Acquisition, Processing & Interpretation (API) of 42,211 LKM assigned by the Government of India (GoI) in unappraised areas of Indian sedimentary basins grouped in 11 on-land sectors, your Company, as on 31.03.2021, has completed data acquisition of 41,137.01 LKM (97.46%) and has processed about 39,268.43 LKM (93%) of seismic lines. Your Company had completed the interpretation of about 35,047.29 LKM (83.02%) on 31.03.2021. This data in turn would contribute in augmenting domestic production of oil and gas.

b) Basement Exploration:

Concerted efforts for Basement exploration- a frontier exploration play, has been taken up by the Company as a major initiative. Your Company has achieved success in Mumbai Offshore, Kutch offshore, Cauvery, Cambay, and A&AA Basin and has been producing from Mumbai Offshore, Cambay, Assam & Assam Arakan and Cauvery basin. During the year 2020-21, a total 23 wells were drilled for Basement (15 exploratory and 08 development wells). Out of 23 wells drilled, 14 wells are hydrocarbon bearing (5 exploratory and 9 development wells) and 02 wells are under drilling as on 01.04.2021. Besides, several G&G Interpretation projects on Basement fracture characterization in Narsimhapuram- Kovilkalappal- Thiruthuraipundi-Tulsapattinam area of Cauvery Basin and in South of Mumbai High PML and adjoining B-119-121 ML area were also attempted including Static modelling of Madanam Basement reservoir.

Supportive fiscal incentives for Basement reservoir may provide boost in Basement exploration and exploitation in India.

c) HP-HT Exploration:

HP-HT and Tight reservoirs have been a challenge for your Company due to borehole complications, fluid design, high- cost drilling technology including HP-HT cementing, well construction and other reservoir engineering problems. Despite these challenges, your Company has successfully established hydrocarbon in Bhuvnagiri, Malleswaram, Periyakudi, Kottalanka, Bantimulli South, Yanam shallow offshore, GS-OSN-2004, G-4- 6 and certain areas of Assam Arakan Fold Belt.

Presently, plays are being targeted mainly in KG, Cauvery, and Western Offshore Basins where such environment have been encountered during exploration for deeper pays. These plays have been an exploration challenge for drilling, as well as for testing. During 2020-21, 03 wells viz. Akanvaritota-1,Pendurru West-1 South Velpuru-2 are under testing whereas well Bantumili South-4 was completed as a dry well with gas indications. As on 31.03.2021, one well Tundurru-1 is under drilling in KG Basin.

14. Exploration and Production from

Unconventional Sources

a) Coal Bed Methane (CBM):

Your Company has been operating four CBM blocks in Jharia, Bokaro and North Karanpura in Jharkhand and Raniganj in West Bengal.

Exploration activities have been completed in these blocks and developmental activities are at an advanced stage in all the three blocks viz Bokaro, Jharia and North Karanpura.

During FY 2020-21, 19 wells were drilled in Bokaro CBM block and 01 well was drilled in Jharia CBM block. Hydro fracturing was performed in 23 wells followed by dewatering by lowering artificial lifts in 17 wells and Gas break-in was observed in 16 wells.

In North Karanpura block, total 35 wells were drilled. Hydro fracturing is done in 30 wells and gas break-in is observed in 11 wells.

In Raniganj block, PML (Petroleum Mining Lease) grant had been received from Govt. of West Bengal w.e.f. 09.06.2019.

Formulation of Revised FDP and Techno economics is fast tracked to initiate development activities.

b) Shale Gas:

Under the Shale Gas/ Oil Exploration and Exploitation Policy of Govt. of India, during 2020-21, your Company has completed one dual objective well Lakshmipuram East-1 in KG Onland with gas indication. Your Company has completed coring and other shale specific data collection programme in 30 wells (10 exclusive and 20 dual objective wells) in 25 identified nomination blocks spread over four basins viz. A&AA, Cambay, Cauvery and KG Basins.

c) Underground Coal Gasification (UCG):

Your Company has taken an initiative to test the UCG technology in India for which all the ground work has been completed with obligatory inputs for construction and implementation of UCG R&D Pilot Project at Vastan Mine block site belonging to Gujarat Industries Power Company Limited (GIPCL) in Naninaroli, district Surat, Gujarat.

All State PSUs of Gujarat, including MOU partner GIPCL, have backed out of the UCG project due to the low calorific value of the Syngas.

Additionally, processing of gas at surface shall be a challenge as Syngas has many impurities & contamination and nonavailability of business partners from Coal/ Chemical/ Power sectors for business ease during pilot/ commercialization. Considering all the factors and current gas price scenario, your Company is of the opinion that it is not prudent to venture into this business at this juncture.

d) Gas Hydrate Exploration Program

Your Company has been an active contributor on gas hydrates exploratory research under National Gas Hydrate Program (NGHP) of Govt. of India since its inception in the year 1997. So far, ONGC, as a NGHP Consortium Member of GoI has played a significant role in G&G studies for the identification of sites for NGHP-01 and NGHP R&D Expedition-02 and successfully completed on-board studies. Based on the results of NGHP- 02, two world class gas hydrate reservoirs have been discovered (Block KG-DWN- 98/5 and Block KG-DWN-98/3).

Based on the post-expedition studies and review by international experts, the site located in KG-DWN-98/5 has been found suitable for pilot production test during NGHP-03 expedition for which various studies like sand control measures, well design, reservoir and production simulation modelling as prerequisite for the pilot production have been completed.

Presently, Gas Hydrate Research & Technology Centre (GHRTC) of ONGC is involved in R&D activities in exploration for gas hydrate prospects in Indian Deep waters and potential exploitation methodologies for gas hydrates through in-house efforts and PAN IIT collaborations.

Your Company is gearing up for the first ever pilot production test in deep waters for gas hydrate.

Your Company has signed MoU with initial validity of five years on 02.03.2021 with Skolkovo Institute of Science and Technology (Skoltech), Moscow for collaborative studies to establish cooperation in the Gas Hydrate Research & Technology applicable to Indian Basins.

15. Infrastructure Up-gradation

Several policy decisions have been taken for the introduction and induction of new advanced equipment as well as up-gradation of existing resources with State-of-the-Art equipment to remain competitive in the global E&P business. Your Company has taken actions to refurbish, upgrade and replace its Onshore/Offshore drilling rigs, Workover rigs, Cementing units, Crisis Management equipment in various phases. Major Infrastructure Up-gradations are as under:

• 38 new WSS units were inducted thereby enhancing the Frac Setups at Rajahmundry, Assam and Ahmedabad.

• Two State-of-Art hydraulic drilling rigs are under commissioning at Ahmedabad Asset.

• 25 State-of-Art drilling rigs and 20 Automated Hydraulic Workover rigs are under advanced stage of manufacturing and shall be delivered in 4 lots in 2021 & 2022.

16. Information Technology

• On the Information Technology (IT) front, Satellite communication networkcomprising of 176 sites at onshore and 25 sites at offshore were successfully revamped with latest technology and enhanced bandwidth for seamless connectivity at remote locations. Replacement of existing IT hardware in compliance with SAP-HANA requirement is in progress. Production & Drilling SCADA systems are also being upgraded.

• Bandwidth was enhanced by 400% and VPN based remote access was provided to ONGCians to access paperless approval process DISHA and ONGC ERP System - ICE to work from home during Covid lockdown, with uninterrupted 24x7 remote IT support to user.

• A Digital Centre of Excellence has been established to scout and induct latest Industry 4.0 technology for enhancing efficiency in E&P operations.

• Internet-based Video Conferencing facilities were provided to organize virtual meetings and monitor field operations during national lockdown imposed due to Covid-19 pandemic.

• In the field of Information security, Enterprise Wide Access Control System (EACS) is nearing completion with 98.75% progress achieved despite Covid-19 related setbacks and Information Security Operation Centre (ISOC) has been implemented.

17. Financial Highlights

Your Company earned Profit After Tax (PAT) of Rs 112,464 Million, down by 16.47% over FYRs 20 (Rs 134,637 Million - restated) and registered Revenue from Operations of Rs 681,411 Million, down by 29.18% over FYRs 20 (Rs 962,136 Million) mainly due to lower crude and gas price realization during the year.

Highlights - Standalone Financial Statements

• Revenue from Operations : Rs 681,411 Million
• Profit After Tax (PAT) : Rs 112,464 Million
• Contribution to Exchequer : Rs 260,773 Million
• Return on Capital Employee : 12.23%.
• Debt-Equity Ratio : 0.07:1
• Earnings/ Share (Face value /share Rs 5) : Rs 8.94
• Book Value/ Share : Rs 163




Rs in Million



Revenue from operations



Other Income



Total Revenue



Profit Before Interest Depreciation & Tax (PBIDT)



Profit Before Tax (PBT)



Profit After Tax (PAT)



Transfer to General Reserves




* re-stated figures.

Material Changes and commitments affecting the financial position of the Company:

There have been no material changes and commitments, which affect the financial position of the Company, which have occurred between the end of the financial year to which the financial statements relate and the date of this Report.

18. Issue /change in Share Capital and Debt Structure

18,972 equity shares of Rs 10 each (equivalent to 37,944 equity shares of Rs 5 each) which were forfeited in the financial year 2006-07 were cancelled during the year and accordingly the partly paid-up amount of Rs 0.15 million against these shares has been transferred to the Capital Reserve.

Issue of Non-Convertible Debentures (NCDs)

In FYRs 21, the Company raised Rs 41,400 million by issue of NCDs on private placement basis as per below details:-

Series of NCDs

Issue Size

Date of Issue

Coupon Rate (per annum)

Maturity Date

Series-I Rs 5,000 million




Series- II Rs 10,000 million




Series- III Rs 11,400 million




Series-IV Rs 15,000 million





Utilisation of proceeds of NCDs: -

Your Company utilized the proceeds of NCDs for the purposes as set out in the respective prospectus.

19. Dividend

Your Company paid an interim dividend of Rs 1.75 per share of Rs 5 each (@35%) in February 2021 amounting to Rs 22,015 million.

Further, the Board of Directors has recommended final dividend of Rs 1.85 per share of Rs 5 each (@37%) amounting to Rs 23,274 million subject to your approval at the forthcoming AGM. The total dividend pay-out for FYRs 21 would be Rs 45,289 million with pay-out ratio of 40.27%.

The Dividend Distribution policy of the Company, may be accessed at the web link: https://www.ongcindia.com/wps/wcm/connect/en/investors/policies

20. Management Discussion and Analysis Report

In the terms of regulation 34(2)(e) of the SEBI (Listing Obligations and Disclosure) Regulations, the Management Discussion and Analysis Report (MDAR) as appended, forms part of this report.

21. Financial Accounting and Secretarial Standards

The Financial Statements of the Company for FYRs 21 have been prepared in compliance with the applicable provisions of the Companies Act, 2013 including Indian Accounting Standards (Ind AS) and Guidance Note on Accounting for Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.

Secretarial Standards:

The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

22. Loans, Guarantees or Investments

Your Company is engaged in Exploration & Production (E&P) business which is covered under the exemption provided under Section 186(11) of the Companies Act, 2013. Accordingly, the details of loans given, investment made or guarantee or security given by the Company to subsidiaries and associates is not reported.

23. Details relating to deposits covered under Chapter V of the Act

Your Company has not accepted any deposits during the year. Further, there was no outstanding deposit and/or unpaid or unclaimed principal amount or interest against any deposits either at the beginning or at the end of FYRs 21.

24. Credit Rating of Securities

Details of the Credit Ratings of Debt Securities of the Company as on 31.03.2021:

1 Name of Debt Security International Bonds (Senior unsecured notes) issued by company and subsidiaries which are guaranteed by the company International Bonds (Senior unsecured notes) issued by company and subsidiaries which are guaranteed by the company Commercial Paper up to Rs 100,000 Million outstanding at any point of time Non-Convertible Debenture upto Rs 50,000 Million
2 Credit Rating obtained Rating : Baa3 (Negative) [Including for Issuer Rating] BBB- (Stable) [Including for Issuer Rating] [ICRA]A1+, CARE A1 + [ICRA] AAA (Stable), IND AAA (Stable)
3 Name of the credit rating agency Moody's Investors Service S&P Global Ratings ICRA Limited (ICRA), CARE Ratings Limited (CARE) ICRA Limited (ICRA), India Rating and Research Private Limited(IRRPL)
4 Date on which the credit rating was obtained February 2005 and annual surveillance thereon every year. November 2012 and annual surveillance thereon every year. ICRA: 18.06.2018 and periodical surveillance and revalidation from time to time. CARE: 25.06.2018 and periodical surveillance and revalidation from time to time. ICRA: 17.07.2020 and periodical surveillance and revalidation from time to time. IRRPL: 23.07.2020 and periodical surveillance and revalidation from time to time.
5 Revision in the credit rating Yes, foreign currency rating and Local issuer Rating is downgraded from Baa2 to Baa3 Not Applicable Not Applicable Not Applicable
6 Reasons provided by the rating agency for a downward revision, if any Pursuant to downgrade of India's sovereign rating from Baa2 to Baa3 on 01.06.2020, Moody's Investor Services had downgraded Company's local and foreign currency issuer and issue rating from Baa2 to Baa3 on 02.06.2020. Not Applicable Not Applicable Not Applicable


On 01.07.2021, Fitch Ratings has assigned "BBB-"rating with negative outlook to the international bonds (Senior unsecured notes) issued by the Company and subsidiaries which are guaranteed by the Company.

25. Investor Education and Protection Fund (IEPF)

Details of transfer of unclaimed dividends and eligible shares to IEPF have been placed in the Corporate Governance Report, which forms part of this Annual Report.

26. Related Party Transaction

Particulars of contracts or arrangements with related parties as referred to in Section 188(1) of the Companies Act, 2013, is provided in specified Form AOC-2, and placed at Annexure-‘B'.

27. Subsidiaries

a) ONGC Videsh Limited

ONGC Videsh Ltd, the wholly-owned subsidiary and overseas arm of your Company for carrying on E&P activities, had participation as on 01.04.2021 in 35 oil and gas projects in 15 countries., viz. - Azerbaijan (2 projects), Bangladesh (2 Projects), Brazil (2 projects), Colombia (7 projects), Iran (1 project), Iraq (1 project), Libya (1 project), Mozambique (1 Project), Myanmar (6 projects), Russia (3 projects), South Sudan (2 projects), Syria (2 projects), UAE (1 project), Venezuela (2 projects) and Vietnam (2 projects). In FYRs 21, ONGC Videsh has relinquished 2 exploration projects, viz., Satpayev, Kazakhstan and Block-32, Israel.

ONGC Videsh portfolio as on 01.04.2021 comprised 14 producing, 4 discovered/ under development, 14 exploration and 3 pipeline projects. ONGC Videsh was Operator in 12 projects, Joint Operator in 6 projects and nonoperator in the remaining 17 projects. Share of ONGC Videsh in production of oil and oil equivalent gas (O+OEG) is provided at para 11 above.

Gross consolidated revenue from operation of ONGC Videsh for FYRs 21 was Rs 1,19,558 million (against Rs 1,54,980 million during FYRs 20) and the PAT registered was Rs 18,859 million during FYRs 21 as against Rs 4,352 million during FYRs 20. The increase in profit was mainly on account of lower impairment reported as exceptional items and lower tax expense.

Significant Financial/Funding activities

• Overall borrowing of ONGC Videsh Group reduced by USD 271.71 million during the FYRs 21;

• USD 700 million Syndicated loan concluded successfully for part refinancing USD 775 million syndicated loan on maturity.

Memorandum of Understanding (MoU)

ONGC Videsh has executed the extended MOU with GeoPark Limited, a Latin America focused E&P company, on 12.02.2021 to jointly acquire, invest and value addition from upstream oil and gas opportunities and also to jointly build a large-scale, economically rewarding risk- balanced portfolio of upstream assets across Latin American region.

Significant events in the area of Exploration & Operations:

1. ACG, Azerbaijan

The Operator has been regularly introducing new technologies such as Multi-zone producers, Multi-zone water injection and improved gravel packs for better sand management to sustain and improve production. During FYRs 21, 5 Nos. of Multi-zone Water Injector wells (with Down Hole Flow Control device) were drilled and completed for better sweep efficiency. Also, the first comingled well was completed for improved reservoir recovery by producing from major and minor zones of Balakhany Reservoir in the Deep Water Gunashli area of the field.

2. Sakhalin-1, Russia

a. Project successfully achieved production of 1 billion barrels of oil in February 2021. Since 2005, the project has successfully implemented cutting edge technologies, drilled record length wells & maintained reliable operations to produce and load crude oil in more than 1,450 tankers at De-kastri Export Terminal without a single oil spill incident.

b. Consequent to the Consortium approval of 6.2 MTA Russian Far East (RFE) LNG plant as a chosen monetization option for Chayvo Phase-2 Gas development, the Consortium awarded the FEED contract for the RFE LNG to Technip FMC with effective date of 05.10.2020.

3. Imperial Energy, Russia

Construction and installation of Associated Petroleum Gas (APG) Plant, except Booster Compressor, was completed on 26.12.2020 and gas intake to APG plant started on 07.02.2021. After plant start-up and achieving the dry gas quality, transfer of gas to main trunk line (sale of dry gas) of Transgaz commenced on 05.03.2021. With successful commissioning, the APG plant will generate revenue by sale of value added products (LPG, stable condensate and dry gas) besides enabling restarting of closed high GOR wells. As part of field development strategy of Snezhnoye field in phased manner, drilling of 2 development wells (followed by multi-stage hydrofrac) and 1 appraisal well has been initiated in the first phase.

4. MECL, Colombia

a. In view of impending expiry in NovRs 21 of the NARE Association Contract, which was contributing around 88% of MECL production, MECL is evaluating various strategic options for the future course of action.

b. MECL has decided to divest the Velasquez-Galan pipeline (189 Km, 50,000 BOPD capacity) as a part of strategic decision.

5. A1 & A3, Myanmar

a. Cabinet Committee on Economic Affairs of GoI on 24.06.2020 approved additional investment of USD 121.27 million for execution of Phase-III development and new exploration program.

b. Phase-III drilling schedule could not commence in March-2020 on account of Covid-19 pandemic. Drilling operations commenced in December 2020 and drilling of the first well (out of total 8 wells planned) was completed in MarchRs 21. Additional rig has been engaged to expedite the drilling campaign.

c. ONGC Videsh conveyed the approval of FDP (Field Development Plan) on 11.11.2020 for the Shwe Project Phase-III Development (comprising installation of LP Compressor) with JV level firm budget of USD 617.981 million. Phase-III EPCIC has commenced in February 2021. The commissioning of LP compressor is scheduled in July, 2024.

d. ONGC Videsh conveyed approval of Mahar Appraisal & Exploration program on 04.01.2021, budgeted at USD 191.921 million for drilling of 1 appraisal well (Mahar-2) & 1 exploratory well (Mahar west) in Block A-3 Myanmar.

6. Block 06.1, Vietnam

a. In view of new discovery in the PLD clastic reservoir, one appraisal well was planned but drilling could not commence due to the directive received from Vietnamese government authorities. Notice of Force Majeure has been served in August, 2020 by operator Rosneft B.V on behalf of the Consortium.

b. Proposal for sale of 100% shares in Rosneft B.V (Operator) to ZN Development Ltd. was received in September, 2020. Change in control to ZN Development is under consideration of the Government of Vietnam.

c. Current PSC is expiring in May 2023 and efforts for PSC extension for development of clastic prospects are ongoing.

7. Rovuma Area-1, Mozambique

a. Project Financing with Debt Cap of USD 16 billion has been finalized with ECAs/Commercial Banks to fund the initial G-A development. Dry Close (execution of key financing documents), achieved on 15.07.2020, wherein commitment of USD 14.9 billion received from lenders. Financial Close (Wet Close) was achieved on 24.03.2021 and the debt drawdown from the project financing has commenced from 26.03.2021.

b. Following the insurgency incidents around project site since 24.03.2021, Total Energies, Operator of Mozambique Area-1, evacuated all the project personnel from the site by 02.04.2021 in accordance with the Security Protocol. Since then, the construction activities on Project site have been stopped. Area 1 consortium has subsequently declared Force Majeure as it was unable to perform its obligations as a result of the severe deterioration of the security situation in Cabo Delgado, a matter which is entirely out of consortium's control.

8. GPOC, South Sudan

Despite difficulties faced during the pandemic and the logistical challenges due to travel restrictions, GPOC was able to bring 35 additional wells into production during the financial year. In FYRs 21, GPOC achieved production rate of 57,142 BOPD compared to 45,023 in FYRs 20.

9. SPOC, South Sudan

The Addendum to Original EPSA and Transition Agreement of Block 5A was signed and executed by the concerned parties on 08.06.2020. EPSA has been extended from 06.02.2024 to 05.04.2037. The exploration period has been adjusted by 54 months commencing from 08.06.2020. Resumption activities are ongoing and production is expected to resume in Q1,2022

10. BC-10, Brazil

Drilling of well OS-2 as part of the Infill drilling campaign-2 was completed on 14.02.2020 and first oil production has commenced on 05.08.2020. OS-2 well is producing @ 10,250 BOPD against the envisaged target of 4,560 BOPD for MarchRs 21.

b) Hindustan Petroleum Corporation Limited (HPCL)

Your Company holds 54.90% stake in HPCL (53.50% as on Mar 31, 2021), a Schedule ‘A', Maharatna, and listed entity. HPCL owns and operates 2 major refineries - one at Mumbai (7.5 million metric tonnes per annum - MMTPA) and the other one at Visakhapatnam (8.3 MMTPA). It also owns and operates the largest Lube Refinery in the country with a capacity of 428 TMT (thousand metric tonne). HPCL has a vast marketing network consisting of 14 Zonal offices in major cities and 133 Regional Offices facilitated by a Supply & Distribution infrastructure comprising of Terminals, Installations, Tap Off Points, LPG Bottling Plants, Aviation Service Facilities, Lube Blending plants, Lube depots and various customer touch points across the country. HPCL has its Research & Development Centre named ‘HP Green R&D Centre' in Bengaluru.

FY 2020-21 has been very eventful in view of crude oil price fluctuations, demand contraction in petroleum products and challenges on business continuity, supply chain management and concerns related to health and safety of workforce due to pandemic.

The combined GRM for HPCL Refineries for FY20-21 works out to USD 3.86 /bbl compared to USD 1.02 /bbl in the corresponding previous year.

During FY 2020-21, HPCL recorded its highest ever standalone Profit After Tax (PAT) of Rs 106,639 million as compared to Rs 26,373 million for the previous year. Revenue from operations for the FY 2020-21 was Rs 2,703,263 million as compared to Rs 2,874,169 crore during the previous year. Enhanced profitability was a result of robust operational performance, improvement in refinery margins helped by inventory gains and favourable exchange rate variations. For the year 2020-21, HPCL has proposed a final dividend of Rs 22.75 per share.

During the year, HPCL refineries achieved combined refining throughput of 16.42 Million Metric Tonnes (MMT) with capacity utilization of 104%. Effective crude sourcing plans, optimizing day-to-day crude run rate, efficient logistics management and regulating product procurements from other sources enabled HPCL to achieve more than 100% capacity utilization in refineries in spite of overall demand contraction.

During the year, HPCL achieved sales volume of 36.59 MMT compared to previous year's sales of 39.64 MMT. HPCL registered market share gain for transport fuels and recorded least de-growth of 6.6% in domestic sales among the industry, industry de-growth for 2020-21 being 8.4% compared to the previous year. HPCL continued to be India's largest lube marketer and second largest LPG marketer during the year.

To further enhance its presence across the value chain of natural gas business, HPCL acquired the balance 50% stake held by SP Ports Pvt. Ltd. in the Joint Venture Company HPCL Shapoorji Energy Pvt. Ltd. (HSEPL) and accordingly, effective 30th March 2021, HSEPL has become a wholly owned subsidiary of HPCL. The company was incorporated to set up and operate a Liquefied Natural Gas (LNG) regasification terminal at Chhara, Gujarat. The construction work for Chhara LNG terminal is in full swing.

HPCL R&D centre at Bengaluru received 44 patents during the year for the new products, technologies developed by it. HPCL has worked out a detailed Digital Transformation strategy and is actively working on harnessing the potential of new age technologies in its various business operations.

During the year 2020-21, HPCL commissioned 2,158 new retail outlets, which is the highest in a year taking the number of total retail outlets to 18,634. HPCL also commissioned 112 new LPG distributorships taking number of total LPG distributors to 6,192 as of 31.03.2021. Towards ensuring availability of alternate fuels and offering more choices to customers, CNG dispensing facilities were provided at 203 retail outlets, taking total number of outlets dispensing CNG to 674 as of March 2021. EV Charging facilities were provided at 84 retail outlets. To meet the requirement of select customers for getting diesel delivered at their premises, total 387 Mobile Dispensers were commissioned as of March 2021.

HPCL's Visakh Refinery Modernization Project and Mumbai Refinery expansion Project are in the advance stages and are progressing towards completion during the financial year 2021-22. Residue Upgradation Facility at Visakh is also likely to achieve mechanical completion in the calendar year 2022. HPCL's major ongoing cross-country pipeline projects - Vijayawada to Dharmapuri product Pipeline, Hassan-Cherlapally LPG Pipeline and Barmer - Palanpur product Pipeline are also progressing well.

c) Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company holds 71.63 % equity stake in MRPL, a Schedule ‘A' Mini Ratna and listed entity, which is a single location 15 MMTPA Refinery. Further, HPCL, another subsidiary of your Company, also holds 16.95% in MRPL.

MRPL's refinery is established with a versatile design with complex secondary processing units and a high flexibility to process Crudes of various API, delivering a variety of quality products. Refining Net throughput of MRPL during FYRs 21 was lower at 11.50 MMT, against 14.14 MMT during FYRs 20, due to demand destruction of petroleum products caused by travel restrictions and lockdowns due to COVID pandemic.

In stressed global market conditions, MRPL registered a standalone turnover of Rs 510,192 million (Rs 607,515 million in FYRs 20) and recorded Loss of Rs 2,405 million (against loss of Rs 27,403 million in FYRs 20). GRM for MRPL was USD 3.71/ bbl (against negative USD 0.23/bbl during FYRs 20).

To capture retail margins, MRPL is focused on setting up and expediting own retail outlets. 11 new Retail Outlets were commissioned during FYRs 21. With this, MRPL has 18 operating outlets.

Direct Subsidiary of MRPL

ONGC Mangalore Petrochemicals Limited (OMPL)

Your Company has divested 49% equity holding in OMPL to its subsidiary MRPL on 01.01.2021, to get synergic benefit and compound value addition upon merger with MRPL. Consequently, OMPL became a wholly owned subsidiary of MRPL and its merger with MRPL is in process.

OMPL was set-up as Aromatic Complex with an annual capacity 914 KTPA of Para-xylene and 283 KTPA of Benzene in Mangalore Special Economic Zone (MSEZ) as a value- chain integration project aligning with MRPL's operations.

OMPL earned revenue from operations of Rs 33,888 million in FYRs 21 (Rs 49,542 million in FYRs 20) and incurred loss after tax of Rs 4,557 million (loss after tax of Rs 14,038 million in FYRs 20).

d) Petronet MHB Ltd (PMHBL)

Your Company and its subsidiary HPCL are holding equity of 49.996% each in PMHBL. With your Company's holding of 54.90% in HPCL, the extent of effective holding in PMHBL by your Company is 77.44% and makes PMHBL a subsidiary of ONGC.

PMHBL owns and operates a multiproduct petroleum pipeline to transport MRPL's petroleum products to various parts of Karnataka State.

FYRs 21 was a challenging year for PMHBL due to COVID 19 pandemic. PMHBL achieved a thruput of 2.139 MMT in FYRs 21 against 2.925 MMT in FYRs 20 and reported total revenue of Rs 1,113 million in FYRs 21 (Rs 1,625 million in FYRs 20) and recorded a net profit (PAT) of Rs 518 million in FYRs 21(Rs 883 million in FYRs 20).

PMHBL paid an interim dividend @ Rs 6/- per equity share totalling to Rs 3,292 million during the FYRs 21 out of which your Company's share is Rs 1,646 million.

Associates and Joint Ventures

e) ONGC Petro additions Limited (OPaL)

OPaL is a mega petrochemical project established in Dahej SEZ and incorporated in 2006 for utilizing in-house production of C2-C3 and Naphtha from Hazira and Uran units of your Company. Your Company, GAIL and GSPC held 49.36%, 49.21% and 1.43% of equity shares respectively in OPaL.

OPaL was commissioned in 2016-17 and has established itself in domestic/export market with sale of prime grade products. OPaL obtained Food Grade approvals for all polymer grades as per US-FDA, EU and Indian standard and has also obtained RoHS-III approval for all these polymer grades as per EU directive.

During the FYRs 21, stable and uninterrupted plant operations were ensured as per Covid protocols and statutory guidelines. OPaL Introduced PP Fibre & Filament grades "OPaLene RH38" for mask/PPE kits application during the beginning of the pandemic period to meet growing domestic demand.

During the FYRs 21, OPaL commissioned Hydrogen Generation Unit which will provide continuity & stability in Polymer units operations in case of interruptions in Dual Feed Cracker Unit and add to reliability of complex operations. OPaL also commissioned LPG Pipeline to provide assurance and flexibility in feed for the complex.

Revenue from operations of OPaL during FYRs 21 was Rs 114,860 million (Rs 101,829 million in FYRs 20) and posted loss after tax of Rs 7,978 million in FYRs 21(Loss of Rs 20,897 million in FYRs 20).

f) ONGC Tripura Power Company Limited (OTPC)

OTPC was incorporated in 2004 as a joint venture of your Company. Your Company holds (50%) along with the Government of Tripura (0.5%); IL&FS Energy Development Co. Ltd. (IEDCL - an IL&FS subsidiary) (12.03%); IL&FS Financial Service Limited (IFIN) (13.97%) and India Infrastructure Fund -II (23.5%).

OTPC has a 726.6 MW gas based Combined Cycle Power Plant at Palatana, Tripura with two generating units with equal capacity. The basic objective of the project is to monetize idle gas assets of your Company in landlocked Tripura State and to boost exploratory efforts in the region. Power evacuation for both the units is done through 662.8 KM long 400 KV double circuit transmission network by North-East Transmission Company Limited (NETC), a joint venture of Power Grid Corporation, OTPC and Governments of the North-Eastern states.

Average Plant load factor for FYRs 21 was about 80% and the company has achieved highest generation of 5090 MU in FYRs 21 since inception.

Revenue from operations during FYRs 21 was Rs 16,456 million (Rs 12,483 million in FYRs 20) and profit after tax (PAT) was Rs 2,206 million (Rs 706 million during FYRs 20). PAT in FYRs 21 is the highest since inception of the company.

OTPC paid Rs 0.60 per share as interim dividend and Board has recommended Rs 0.70 per share as final dividend for FYRs 21.

g) ONGC TERI Biotech Limited (OTBL)

OTBL is a JV formed and incorporated in 2007 by your Company (49.98%) along with The Energy Research Institute (TERI) (48.02%) and the balance 2% shares are held by individuals. OTBL has developed various Biotechnical Solutions for oil and gas Industry through collaborative researches involving the Company and TERI. These technologies include Bioremediation, Paraffin Degrading Bacteria (PDB), Wax Deposition Prevention (WDP) and Microbial Enhanced Oil Recovery (MEOR) which are being provided to oil and gas industries both in India and abroad.

Revenue from operations of OTBL during FYRs 21 was Rs 270 million (Rs 224 million in FYRs 20) and profit after tax (PAT) was Rs 88 million (Rs 75 million during FYRs 20).

h) Dahej SEZ Limited (DSL)

DSL, a 50:50 JV of your Company along with Gujarat Industrial Development Corporation (GIDC), was formed and incorporated in 2004 for establishing a multi-product SEZ at Dahej. Your Company has set up C2-C3 Extraction Plant as a value-chain integration project in this SEZ, which serves as feeder unit to OPaL, JV of your Company. The company is expanding with its Phase -II project and initiated acquisition of additional land.

Revenue from Operations of DSL during FYRs 21 was Rs 624 million (Rs 650 million in FYRs 20) and PAT was Rs 359 million (Rs 464 million during FYRs 20).

i) Mangalore SEZ Limited (MSEZL)

MSEZ is a Special Economic Zone promoted by the Company with an equity stake of 26% along with KIADB (23%), IL&FS (50%), OMPL (0.96%) and KCCI (0.04%). MSEZ, was set up and incorporated in 2006 for development of infrastructure to facilitate and locate industrial establishments including OMPL. MSEZ is operational since April 2015.

Total Revenue from operations of MSEZL during FYRs 21 was Rs 1,651 million (Rs 1,741 million in FYRs 20) and loss after tax of Rs 321 million (Net loss of Rs 316 million during FYRs 20).

j) Pawan Hans Limited (PHL)

PHL, is an Associate of the Company, with 49% holdings, and the Government of India (GoI) holding the remaining 51% of the share capital. PHL was formed primarily for catering to the logistic requirements of offshore and other remote area oil fields. PHL is a Mini Ratna-I Category PSU, having fleet of 43 helicopters. The GoI is in the process of identifying a strategic investor for its entire holding and hence, your Company has also decided to exit PHL along with the Government of India.

k) Petronet LNG Limited (PLL)

Petronet LNG Limited (PLL), a JV of your Company, which was incorporated in 1998 with 12.50% equity holding along with same shareholding held by other Oil PSU copromoters viz., IOCL, GAIL and BPCL, is a listed Company. PLL, has set up the country's first LNG receiving and regasification terminal at Dahej, Gujarat, and another terminal at Kochi, Kerala. While the plant at Dahej terminal has 17.5 MMTPA capacity, the Kochi terminal has capacity of 5 MMTPA.

During FYRs 21, PLL recorded revenue from operations of Rs 260,229 million and Profit after tax (PAT) of Rs 29,494 million. PLL paid interim dividend Rs 8 per share and proposed a final dividend of Rs 3.50 per share during the FYRs 21.

l) Indradhanush Gas Grid Limited (IGGL)

Your Company has subscribed 20% equity capital in IGGL, a JV company along with IOCL, GAIL, OIL and NRL. IGGL was incorporated in 2018 for the purpose of laying 1,656 KM pipeline covering north-east states with a Capex of Rs 92,650 million. Ministry of Petroleum and Natural Gas (MoPNG) has approved Viability Gas Funding (VGF) of Rs 55,590 million which is 60% of the project cost. IGGL has initiated the project related activities like procurement and laying of pipelines. IGGL has spent Rs 3,050 million till 31.03.2021.

m) Companies Which Have Become/ Ceased To Be Company's Subsidiaries, Joint Ventures And Associates Companies during FYRs 21

a) Companies which have become subsidiaries: NIL

b) Companies which have ceased to be subsidiaries: Your Company has divested 49% equity holding in OMPL to its subsidiary MRPL on 01.01.2021. Consequently, OMPL became direct and wholly owned subsidiary of MRPL and merger of MRPL and OMPL is in process.

c) Companies which have become a joint venture or associate: NIL

d) Companies which have ceased to be a joint venture or associate: NIL

28. Make in India and Start-up Initiative

ONGC has been the lead PSU of Upstream Sector for Make in India and Atmanirbhar Bharat Programs. ONGC's main projects/initiatives under the said program are as under:

Purchase Preference linked Local Content Policy: Induction of revised PP- LC in 2020.

• ONGC has introduced the policy to adopt National Competitive Bidding for procurements up to value of Rs 200 Crore in order to promote Atmanirbhar Bharat.

• The Government policies on PP-LC,

MSME, GeM, DMI&SP and DMEP have been adopted by ONGC.

• ONGC has stepped up its drive for localization of procurement under Atmanirbhar Bharat campaign of the Government.

• ONGC has recently introduced the new Development Order Policy, to promote development of E&P sector equipment and services in India by domestic industry and to make country self-reliant in E&P equipment and services. Five Year Procurement plan has been posted on ONGC website to encourage the domestic manufacturers to enhance their product portfolio /installed capacities. Bid Evaluation Criteria for Supply / Services has been suitably modified to support Localization.

• Expression of Interest for indigenous development of products was called in Dec 2020 - Jan 2021. More than 60 domestic companies have shown their interests.

• Your Company has carried out 6 National Webinars with domestic manufacturers to promote Atmanirbhar Bharat campaign, and conducted video conferencing and inspection of facilities of domestic manufacturers to promote localization of product & services.

• In North East, ONGC has developed vendors for industrial grade Air Conditioners and special Batteries for use in operations. Tripura asset has developed local vendors for manufacturing of Orifice of different sizes, Elbow Seal valve Cover etc. Tripura Asset has also helped Indian vendor of bits to develop PDC bits for use in drilling of wells in the asset. These drilling bits are locally manufactured in India. More development work is being done in this area.

• In western sector, local vendors for manufacturing of Moulded Guides on Sucker Rod, Rubber centralization for CBT Tool, Thermal Fan-fold paper, Hydraulic hoses for pressure control equipment, Grease Lubriplate & Wireless radio remote control of Upet Rig have been developed. These product localizations at work center level carries an annual offtake value of Rs 20 million and is aimed to support local vendors in the locations.

• ONGC has placed 14 NOAs of development orders for different products under new development Policy. The annual offtake of these products is around Rs 8,000 million. These products are in various stages of development, some of the developed products are under field trial and vendors of some successfully developed products have been declared as developed indigenous sources.

29. ONGC Start-up Initiative

Your Company announced a Rs 1,000 million Start-up fund on its 60th foundation day i.e. on 14.08.2016 to foster, nurture and incubate new ideas related to energy sector. The initiative, christened as ‘ONGC Start-up Fund', is in line with the ‘Start-up India' initiative launched by the Hon'ble Prime Minister of India on 16.01.2016.

The initiative is intended to promote entrepreneurship among the younger Indians by creating an ecosystem that is conducive for growth of Start-ups in the energy sector, which has a huge potential for technology- enabled ideas. The energy sector is contributing enormously to the growth of economy. Currently, the sector faces various critical challenges and new ideas are required to mitigate those challenges.

A dedicated website https://startup.ongc.co.in was launched for registration of proposals. The website also contains an application form to capture proposals for Funding support for Start-Ups.

Your Company has completed ten pitching rounds and has committed to support fifteen start-ups from energy sector with total commitment of Rs 565 million. Sixteen Start-Ups are under due diligence and evaluation for identifying suitability for investment. Applications received during recent invitations on the start-up website are under evaluation / review.

30. Health, Safety and Environment (HSE)

Your Company accords topmost priority to the Health, Safety and Environmental (HSE) management by carrying out its operations ensuring zero harm to the people or the environment. HSE in ONGC's operations is guided by HSE Policy and HSE management system (HSEMS). In addition there is also dedicated Environment Policy and e-waste policy.

ONGC in order to maintain high standards, goes beyond the Regulatory requirements and practices proactive HSEMS, which is based on International Standards, ISO 9001, OHSAS 18001/ ISO 45001 and ISO 14001.

Tauktae incident

Your Company received weather forecast and warnings related to cyclone Tauktae in Arabian Sea on 16th and 17th May 2021. All the Installations, Rigs were advised to initiate Installations specific Emergency Response Plans to deal with the cyclone. All the Rigs went into storm survival mode. All process platforms also moved into safe mode. Chopper services were suspended. All barges in the field were instructed to move to safe location.

In the early hours of 17.05.2021, Cyclone Tauktae hit Arabian Sea off the coast of Mumbai. The Cyclone changed its path to the operational areas of ONGC and also picked up speeds much higher than the predictions.

The fury of the cyclone was unprecedented and winds gusted up to nearly 110 Knots in the areas of operations. Three construction barges along with their AHTs belonging to consortium of LSTK contractors, one ONGC owned floater Rig and one charter hired Jack-up rig were severely impacted. One of the Accommodation barge, Papaa-305, hit an unmanned well platform after failure of its anchor and later capsized. One of the Anchor Handling Tug, Varaprada also capsized in the cyclone.

On getting the information, your Company immediately launched rescue operations along with Indian Navy and Indian Coast Guard. Immediate rescue operations were hampered by the inclement weather, however by 18.05.2021, the situation was brought under control. The impact of the cyclone resulted in unfortunate vessel incidences in which 86 people could not survive and became brave nature victims (BNV).

Your Company, immediately launched the rehabilitation efforts and special teams were formed to contact the family of impacted persons. A special team of ONGC Officials was deputed at the Hospital for smooth coordination with the affected families. A nodal officer was assigned for families of each BNV (Brave Nature's Victim), who was responsible for facilitating logistics, boarding & lodging, counselling, interaction with authorities and any other local support. As an immediate relief, apart from insurance and other facilities available to the workers from their employers, Your Company disbursed grant of ex-gratia payment amounting to Rs 0.20 million to the next of kin of each 86 BNVs and Rs 0.10 million to each of the 188 survivors.

Your Company has initiated a major exercise of reviewing all its emergency response, contingency and disaster management plans with special emphasis on handling such unprecedented cyclonic situations. Your Company has also launched a massive exercise of companywide safety management assessment and implementation of reviewed safety standards benchmarked to international practices of E&P industries.

HSE Initiatives

a. To check the conformity of activities and processes with the existing HSE management systems as well as to prevalent rules, regulations, guidelines and standards, regular internal audits are being conducted by multi-disciplinary teams of the Company.

i. Internal Safety Audits (ISAs) are being conducted by Multi - disciplinary Teams at regular intervals depending upon their criticality. Inspite of COVID-19 challenges, 291 ISAs were conducted last year.

ii. During the year 2020-21, External Safety Audits were conducted by Oil Industry Safety Directorate (OISD) at 64 Installations. Directorate General of Mines Safety (DGMS) is a Regulatory Agency under the Ministry of Labour and Employment, GoI in matters pertaining to occupational safety, health and welfare of persons employed in mines including oil-mines. DGMS carried out inspections at 86 Installations during the year 2020-21.

Concerted efforts are being made to liquidate Safety Audit Recommendations within the stipulated timelines. Suitable compensatory safety measures are put in place till the audit observations are complied with.

b. Your Company has been laying great emphasis on Near Miss reporting and timely action on the same as this shall reduce the accidents in operations.

c. Your Company has also launched an award scheme to encourage the employees to be more safety conscious in operations and improve the safety culture. Every quarter, Safety Champion and Safe Installation awards are being declared by Assets/ Plants/ Basins based on a criteria which ensures enhancing safe operations. The awards are in recognition of commendable performance in safety and encourage employees to enhance the safety culture. The awardees were well recognized on public forums.

d. Your Company has implemented SAP based E-PTW (Electronic Permit to Work). The system removes requirement of physical approvals, provides a single point of monitoring from anywhere, and maintains system based checks & balances. This online tool is serving as an effective measure to ensure that procedures are followed and implemented.

e. Benchmarking of all installations has been done on various HSE parameters in SAP. HSE Index is an important measure of monitoring safety performance of installations. Compliance of all work centres is monitored on monthly basis. On basis of analysis of performance of work centres and specific services, Half Yearly HSE Index report is being published which also includes observations and recommendations for improvement.

f. Mock drills are being conducted at installations/rigs to check the efficacy of preparedness against defined emergency scenarios as per the risks envisaged in the respective emergency response plans. During 2020-21, mock drills were conducted against a target of 12670, total 14803 ERP (Emergency Response Plan) and 8 DMP (Disaster Management Plan). All the data is analysed for further improvement.

g. Mines Vocational Training (MVT), a mandatory training as per Mines Act, is being imparted to both employees and contract personnel through inhouse training centres. It is an essential safety training being provided to staff level field going personnel. Inspite of COVID-19 pandemic limitations, MVT was provided to 2,643 personnel (976 Company Employees and 1,598 Contract Personnel) in 2020-21.

h. In order to ensure awareness amongst all the employees and contract workers, Ten Safety Rules Awareness Programs are regularly being conducted at rigs/ installations. In 2020-21, the program could cover 18,556 personnel, which is one of the highest achieved so far on annual basis.

i. Your Company has a very robust system of enquiry of an accident. All the accidents even minor ones, are enquired into and required actions are taken in order to avoid reoccurrence. Safety Alerts are being issued on the basis of root cause analysis of these incidents. Such alerts are being issued on regular basis and widely circulated to all concerned and awareness workshops are also held. In 2020-21, nearly 30 such Safety Alerts were issued.

j. On the basis of analysis of incidents/ accidents causes and recommendations, Safety Advisories have been issued from time to time with guidelines/ recommendations to be followed by all stakeholders.

k. The HSE Committee of the Board has been reviewing the HSE performance on quarterly basis.

l. Environmental Clearances: During the 2020-21, ONGC received 06 environment clearances (ECs), 03 EC Amendments & 1 Coastal Regulatory Zone (CRZ) clearance from Ministry of Environment, Forest and Climate Change (MoEFCC) for carrying out exploration, development and production activities in 48 fields in onshore and offshore areas. Approvals were also accorded for drilling of 4 exploratory and 448 development wells, converting of one exploratory well to development well, setting up of Additional Cogeneration Unit GT-IV and Enhanced Reactive Thermal Oxidizer (ERTO) at Uran Plant.

m. Since 2013, ONGC has been accredited by Quality Council of India (QCI) - National Accreditation Board for Education & Training (NABET) as an EIA Consultant Organization which is a prerequisite for preparing EIA reports to accord of Environmental Clearances (ECs) by MoEFCC. The accreditation is helpful in securing the ECs for Company's projects.

n. Waste Management

i. Waste Water Management: ONGC monitors the waste water usage and maintains the quality of effluent discharged conforming to statutory requirements specified for discharge of treated effluent at surface/ subsurface. The Company has 43 number of Effluent Treatment Plants across onshore work centres to treat approx. 104,000 m3/day of waste water produced during E&P operations. For Offshore effluent treatment, Produced Water Conditioners have been installed at process platforms. Sewage Treatment Plants for treatment of sewage water generated are also provided at offshore facilities.

ii. Solid Waste Management: For environmentally safe disposal of oily waste, OTBL has developed specialized patented technology for bioremediation of oily sludge/oil contaminated soil. The technology uses a consortium of Hydrocarbon degrading bacteria which reduces the Petroleum Hydrocarbons levels in waste/soil to less than 0.5 per cent. During 2020-21, 74,569 Metric Tons of oily sludge/oil contaminated waste has been bio-remediated.

31. Carbon Management and Sustainable Development

Your Company believes that being a safe, responsible and ethical operator it should take care of communities around its areas of operations, to create long-term value for our stakeholders. Your Company recognizes the growing concern around environmental issues related to the operations of oil and gas sector and accepts this challenge as an opportunity to integrate the concepts of sustainable and responsible business into our planning. As a result, ONGC Group of companies is a fully integrated energy major with verticals from upstream, midstream and downstream domains of the sector.

Sustainable Development is a commitment to continually enhance the benchmarks of economic, environmental and social performance. The major endeavours towards corporate sustainability are as under:

Clean Development Mechanism

Your Company commenced its Clean Development Mechanism (CDM) journey in 2006. So far, it has registered 15 CDM projects with the United Nations Framework Convention on Climate Change (UNFCCC) under the Kyoto protocol, demonstrating its commitment towards protection of our environment and sustainable development. Three new projects (05 MW solar power project at Ankleshwar, 01 MW solar power project at IPSHEM-Goa, and rooftop solar power projects at work centres of Gujarat, Assam and Dehradun) are under validation process, for registration as new CDM projects. The Company has 2.2 million Certified Emission Reductions (CERs) in CDM account. Verification of 05 CDM projects were in progress in FYRs 21 for crediting of CERs.

Greenhouse Gas (GHG) Accounting and Mitigation

Your Company aims to reduce GHG emissions by focusing on improved energy efficiency. GHG Accounting is being carried out and disclosed in Sustainability Report of the Company. Total emissions during FYRs 21 including scope-1 and scope-2 emissions were 09.66 MMT CO2e, recording a reduction of about 5.85 % from the previous year.

Global Methane Initiative

The Global Methane Initiative (GMI) is an action-oriented initiative from United States Environment Protection Agency (USEPA) to reduce global fugitive methane emissions to enhance economic growth, promote energy security, improve the environment, and reduce greenhouse gases emission. Under this programme, during 2020-21, GMI survey were conducted at three production installations of Cambay Asset and eight production installations of Ahmedabad Asset. Through this programme, ONGC could so far prevent approximately 20.48 MMSCM of methane gas leakages in to the atmosphere with an environmental benefit of approximately 3,06,250 tonnes CO2 Equivalent (TCO2e).

Solar and wind energy initiatives

Your Company has installed about 31 MW capacity Solar Power plants across work centres depending on the availability of open spaces and rooftops.

Since 2008, your company has been a forerunner in adopting renewable energy with its first 51MW wind power project (34 numbers of 1.5 MW Wind turbine generators) in the Bhuj district of state of Gujarat. Your Company has a dedicated Renewable Energy Cell (REC) which acts as the knowledge center on all renewable energy projects. In 2015, its second wind power plant with 102 MW (49 numbers of 2.1 MW Wind Turbine Generators) capacity at Jaisalmer, Rajasthan was successfully completed enhancing the capacity of wind energy to 153 MW.

The total installed capacity of renewable energy as on 31.03.2021 is about 184 MW (Solar: 31.06 MW and Wind: 153 MW). Another 20 MW solar projects are under way for commissioning in work centres. Your Company is committed to undertake such projects in the coming times and has set an initial target of 2 GW capacity by 2030.

Carbon Capture, Storage and Utilisation (CCSU)

CCSU is the only clean technology capable of decarbonising major industrial sectors such as steel, cement, pulp and paper, refining and petrochemicals. Your Company has signed an MoU with Indian Oil Corporation Limited (IOCL) on 01.07.2019 for CO2 based Enhanced Oil Recovery in Gandhar Field of ONGC by injecting CO2 captured from IOCL's Koyali refinery into specially prepared well (s) in Gandhar oil field. Detailed technical feasibility study was carried out for CO2 - EOR in GS 9 & 11 sands of Gandhar and Koyali refinery of IOCL has been found suitable for the project. The project has the potential for sequestrating 5 to 6 million TCO2 by the year 2040.

Electric Vehicle pilot project

Towards promoting electric mobility in its value chain, your Company flagged off the first batch of ten electric vehicles for its officers at Delhi, in collaboration with EESL.

Video Conferencing - a step towards mitigating scope-3 emissions

Taking advantage of the digital revolution like broad band and web-cam, ONGC has adopted video conferencing for interaction of top management with key executives across work centres. Presentations and business meetings are being held through video conferencing which reduces the travel cost, saves executive man-hours and mitigates scope-3 emissions from air travel.

Besides, during the period of COVID-19, your Company immediately shifted to online mode of video-conferencing through various platforms and held several meetings viz. coordination of all activities with different work centres and decisions/actions were taken including update on the emerging COVID-19 scenario.

32. ONGC Group Sustainability Report

Your Company has been publishing GRI based, independently assured Group Sustainability Report covering ONGC, ONGC Videsh, MRPL, OMPL, OPaL and OTPC. The focus of Sustainability Reporting is on Social, Environmental and Economic impacts with Governance aspects also. The Principle of Responsible Investment is rapidly becoming a mainstream concern based on the belief that addressing Environmental-Social-Governance (ESG) issues will protect and enhance portfolio returns of all stakeholders. ESG Reporting has evolved as industry best practices and become necessary as ESG considerations are incorporated in to the Credit Ratings of the company. Your Company would be publishing GRI based ESG report along with traditional Sustainability Report from this year. The report will meet Global Reporting Initiative (GRI) Standards and also independently assured through third party assurer as per AA 1000 AS Standard.

33. Technology induction/ up-gradation and Energy Conservation

The information required under section 134(3) (m) of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, is annexed as Annexure-‘C'.

34. Business Responsibility Report

Clause (f) of sub-regulation (2) of regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, stipulates that the Annual Report shall contain a Business Responsibility Report describing the initiatives taken by the listed entity from an environmental, social and governance perspective in the format specified. Accordingly, the Business Responsibility Report for FYRs 21 has been appended to this Annual Report.

35. Internal Financial Control System

Your Company has put in place adequate Internal Financial Controls by laying down policies and procedures to ensure the efficient conduct of its business, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information commensurate with the operations of the Company. Effectiveness of Internal Financial Controls is ensured through management reviews, self-assessment and independent testing by the Internal Audit Team indicating that your Company has adequate Internal Financial Controls over Financial Reporting in compliance with the provisions of the Companies Act, 2013 and such Internal Financial Controls are operating effectively. The

Audit Committee/ Board reviews the Internal Financial Controls to ensure its effectiveness for achieving the intended purpose. Independent Auditors Report on the Internal Financial Controls of the Company in terms of Clause (i) of Sub Section 3 of Section 143 of the Companies Act, 2013 by the Statutory Auditors is placed along with the Financial Statements.

36. Human Resource Development

Your Company operates in various challenging terrains from deserts to jungles to offshore. Your Company truly values its Human Resource who commit themselves towards the pursuit of E&P of hydrocarbons to ensure India's Energy security. To keep their morale high, your Company extends best of welfare benefits to employees and their dependents by way of comprehensive medical care, education, housing, social security and other facilities.

Your Company caters to meet the demands of maintaining a steady flow of talent, in a business which is characterized by high risks and uncertainties, enormous costs, rapid technological advances, physically challenging work environment, fluctuating product prices and growing competition. Your Company's talent management strategy is focused on building an optimal and competent workforce to meet business needs, and is centered around workforce planning and talent acquisition, performance management, learning & development, career growth, succession planning and leadership development.

There were 28,479 employees on rolls as on 31.03.2021. These ONGCians dedicated themselves to securing your Company's excellent performance during the year, even amidst the challenges of a global pandemic situation. ONGCians responded to the imperatives of a New Normal with agility, resolve and spirit of collective collaboration to ensure continuous operations while maintaining focus on health & safety through institutionalized Covid appropriate Standard Operating Procedures and modified norms such as roster attendance, staggered timing, work from home, etc.

Your Company ensured constant support for its employees during the health crisis by extending complete medical support to its employees and their families. 24x7 Helpline Numbers for all work centres were operationalized to help and assist employees and their family members. Continuous communication & connect of Top leadership with operations teams at locations across the country was ensured to reinforce employee safety, boost workforce morale and provide all necessary support for smooth operations.

A number of welfare measures were extended to employees to provide relief during the pandemic situation. Further, in order to rehabilitate bereaved ONGC families, a special Employment Assistance scheme was introduced to provide employment assistance to dependents of regular employees who succumbed to Covid-19.

During FY 2020-21, a number of digital initiatives were adopted towards improved employee processes, claims and paperless transactions. Further, talent acquisition processes were modified to meet the new challenges. Selection Interviews were conducted online during campus recruitment and engagement of contract medics across work centres. Corporate Promotion exercise was conducted on digital/ virtual platforms, minimizing travel and physical contacts. Assessment Development Centres for all eligible executives were also completed in online mode, which not only helped to protect the health of employees but also resulted in cost savings.

During the year, in view of the Covid-19 pandemic, with a quick and adaptive approach, learning methodologies were revamped to adopt online mode, and the Annual Training Calendar was realigned to facilitate conduct of online trainings. 16,518 executives and 3,287 nonexecutives were imparted training in relevant domains/ areas, spanning 135,994 executive and 6,735 non-executive training days.

Your Company also pursued structured initiatives for maintaining a vibrant academia - industry interface through Chairs, participation in various academia-industry level forums, workshops, seminars, and conferences, etc.

Major Emergency Management trainings were conducted through in-house faculty for the first time for Offshore Installation Managers.

Taking the initiative further and carrying the leadership role of Upstream National Oil Company, ONGC Academy collaborated with National Institute of Disaster Management to broad base the training outreach by including other companies under administrative control of MoPNG viz: BPCL, EIL, GAIL, HPCL, IOCL, Oil India Ltd and conducted a One Day Basic Disaster Management training programme for ONGC Employees and employees of these companies.

In FYRs 21, your Company continued with the two focused leadership development programmes for junior and middle level executives - FuEL (Future Energy Leaders Programme) for E1 to E3 level executives and OYL (ONGC Young Leaders Programme) for E4 and E5 level executives. Five programmes each were conducted. These customized programmes were in association with Centres of Excellences to groom young executives as future leaders who will take ONGC to the next level. Five batches of Management Development Programs (MDP) were organized for officers who were recently promoted to corporate level.

Employee Engagement

Your Company utilized technology to organize a number of online engagement activities during the year, such as Make a Mask contest for employees & their family members, Story writing contest called Humans of ONGC, case-study contest, memoir-writing contest for serving & retired employees, etc., apart from a number of webinars and virtual meets on relevant topics, including improving productivity, health & emotional well-being.

Your Company also conducted the Annual Business Games to hone the business acumen of its executives through business quizzes, business simulations and case-study presentations.

Similarly, Online ‘Fun Team Games' (FTG) were organized for E0 and below level employees to inculcate MDT (Multi-disciplinary Team) concept and spirit of camaraderie and belongingness to the organization, which was very well received by the participants.

Your Company also organized a unique engagement event for Persons with Disabilities (PwD) called Mosaic 2020 - Online Games consisting of quiz, debate, extempore, poetry recitation, art & crafts, poster contest and a unique talk show named ‘Candid for Covid', where PwD employees shared their thoughts & experiences on the pandemic. The event culminated on International Day for PwD on 03.12.2020.

Implementation of Govt. Directives for Priority Section

Your Company complies with the Government directives for Priority Section of the society. The percentage of Scheduled Castes (SC) and Scheduled Tribe (ST) employees were 15 percent and 11 percent respectively as on 31.03.2021.

Your Company is fully committed for the welfare of SC and ST communities. The following welfare activities are carried out by your Company for their betterment in and around its operational areas:-

Annual Component Plan

Under Annual Component Plan for SC/ST, every year allocation of Rs 200 Million is made.

Out of this, Rs 60 Million is distributed amongst all the work-centres of the Company for taking up welfare activities for communities in and around areas of the Company's operations. In addition, Rs 140 Million is managed centrally, and is earmarked for special projects/ proposals/ schemes for the welfare of areas/ persons belonging to SC/ST communities. The amount under component plan is utilised for taking up various measures for the welfare and upliftment of the needy people of the said communities.

Scholarship to meritorious students

Your Company provides 1,000 scholarships for meritorious SC and ST students for pursuing higher professional courses at different Institutes and Universities across the country in Graduate Engineering, MBBS, PG courses of MBA and Geo-Sciences. The scholarship amount is extended up to Rs 48,000/- per annum per student subject to conditions of the scheme.

Women Empowerment

Women employees constituted 7.5 per cent of your Company's workforce as on

31.03.2021. Your Company continued to make concerted efforts towards providing an enabling workplace environment for women employees to grow and strengthen the talent pipeline as future leaders of the organisation. In addition to a number of women-friendly policies and facilities which are in place, various programmes for women empowerment and development, including programmes on gender sensitization, were organized. Your Company also actively supported and nominated women employees for programmes organized by reputed professional agencies. In its continued endeavour to encourage and facilitate more women employees to take-up field assignments for developing core operational competencies, a new dungaree (industrial overall) was designed specifically for women employees, in association with National Institute of Design, Ahmedabad, to enable them to perform field jobs with greater ease.

Disclosure under the Sexual Harassment

Your Company has complied with the provisions under the Sexual Harassment of women at workplace (Prevention, Prohibition and Redressal) Act, 2013 including constitution of Internal Complaints Committees (ICC) for dealing with complaints of sexual harassment of women at workplace. Skill enhancement programs were conducted for members of ICC to equip them with requisite skills for enquiring into complaints. The Company also issued detailed guidelines for dealing with complaints of sexual harassment. A dedicated page on Prevention of Sexual Harassment, with valuable resources on creating awareness, has been added on the internal portal of the Company.

The following is a summary of sexual harassment complaint received and disposed-off during the financial year 2020-21:

Financial Year

No. of complaints received

No. of complaints disposed off

No. of pending complaints






Work-Life Balance

Your Company provides an enabling environment for work-life balance of its employees. Townships at many work centres have developed facilities like gymnasiums, clubs, sports facilities and music rooms. Facilities for gym, sports, yoga, library, etc. are also provided in Offshore Living Quarters. Apart from social communities such as Officers Clubs, Employee Welfare Committees, Resident Welfare Associations, ONGC Officers' Mahila Samiti etc., your Company also has a unique adventure wing named ‘ONGC Himalayan Association' which organizes adventure programmes like mountaineering, trekking, water rafting, etc.

37. Industrial Relations

Your Company maintained harmonious Industrial Relations throughout the year. Man-days loss due to internal industrial action was reported as ‘NIL' for FYRs 21.

38. Compliance under the Right to Information Act (RTI), 2005

Your Company has a well-defined mechanism in place to deal with the RTI applications received under the RTI Act 2005. Your Company has a designated senior level officer as a ‘Nodal Officer' to oversee its implementation. The applications received are processed by 23 designated ‘Central Public Information Officers' (CPIOs) in various work centres across the Company, in compliance of Sections 5(1) and 5(2) of the Act. The particulars of all the quasi-judicial authorities under the ambit of RTI Act, 2005 have been uploaded on the Company website (www. ongcindia.com) for information of the general public. In compliance of Government directives, your Company is efficiently processing the online applications under the Act.

Your Company received 1,893 applications (including 24 transferred by other Public Authorities) during FYRs 21, and 185 RTI applications were carried forward from FYRs 20. Against 1,893 applications, information as sought were provided, 12 applications were rejected and 24 applications were transferred to other public authorities, in accordance with the provisions of the RTI Act 2005. There were 293 first appeals, which were disposed-off during the period. Additionally, 58 Second Appeals which were listed for hearing before the Central Information Commission during FYRs 21 were also processed.

39. Implementation of Official Language Policy

Your Company makes concerted efforts for promotion and implementation of Official Language. Some of the efforts undertaken in this regard, during the year were:

• Unicode Hindi software installed in all offices.

• Hindi workshops were conducted at regular intervals in all work centres.

• Hindi technical seminars/Webinars, Kavi Goshties, Kavi Sammelan and Hindi plays were organised at various work centres.

• Various programmes were conducted at all work centres of the Company during Rajbhasha Fortnight (14-28.09.2020) and Vishva Hindi Divas (10.01.2021).

• Hindi Teaching Scheme of Government of India was implemented effectively at all regional work centres of the company. Hindi e-magazines were published by all work centres.

• E-Roster of Employees regarding working knowledge of Hindi has been put in place.

• Paperless office has been made bilingual for effective implementation of Official Language policy. Besides, Unicode has been installed in SAP platform for enabling bilingual working.

• For effective implementation of OL Policy, a bilingual handbook has been prepared and uploaded on internal portal reports. ongc.co.in for ready reference.

40. Sports

Your Company continued its support for development of sports in the country by providing employment opportunities to sportspersons and also granting scholarships to budding talents in 22 games. Your Company also sponsored various sports associations/ federations/ sports bodies for organizing sports events as well as developing sporting infrastructure. The support has enabled many sportspersons to achieve, excel and bring home laurels for the nation and the organization. Some of the significant achievements of our sportspersons during the year were as follows:

• ONGC has been conferred with prestigious Rashtriya Khel Protsahan Puruskar 2020.

• Three ONGCians namely Vishesh Bhriguvanshi (Basketball), Ishant Sharma (Cricket), and Madhurika Patkar (Table Tennis) were conferred the prestigious "Arjuna Award" for the year 2020.

• ONGCian Manpreet Singh, was conferred with the "Dhyanchand award" in the year 2020.

• The total number of National Awardees in the organization is as follows:

• Padma Bhushan - 1

• Khel Ratna - 2

• Padma Shri - 6

• Arjuna Award - 45

• Dhyanchand Award - 2

• ONGCian Koneru Humpy, Padmashri and Arjuna Awardee, led India to final of FIDE Online Chess Olympiad held in August 2020. India and Russia were declared joint winners of the Online Chess Olympiad.

• ONGCian Vidit Gujarathi was captain of Indian Chess team which was declared Joint winners along with Russia.

• Two ONGCians namely Shiva Thapa and Sumit Sangwan, were part of Indian Boxing Team which won the Bronze medal in Alexis Vastine Memorial International Boxing Tournament 2020 at Nantes (France) in

October 2020 in their respective weight category.

• ONGCian Sourav Kothari won the All India National "A" level Snooker Championship 2021 held at Hyderabad in February, 2021

• ONGCians Chess Grandmaster S P Sethuraman, International TT player G Sathiyan and International Carrom player S. Ilavazhaki were among the 30 Sports persons felicitated with "Chief Minister's State Sports Award for Outstanding Sportspersons" by Govt. of Tamil Nadu at Chennai, in February 2021 for their achievements in Sports over the past several years.

• ONGCian and International Badminton player PC. Thulasi conferred with the G.V. Raja Award (Kerala's highest sports award) in February 2021 for her exceptional performances and accomplishments in the field of Badminton.

• ONGCian Ankita Raina won her WTA title as she and her Russian partner Kamilla Rakhimova clinched the doubles event in the Phillip Island Trophy 2021 held in Melbourne. This win propelled the 28-year- old Ankita to top-100 in the WTA rankings in doubles. She is the third Indian woman player to be in top-100.

• ONGCian Ishant Sharma created history at Motera stadium Ahmedabad against England by becoming only the 2nd Indian pacer after legendary Kapil Dev to play 100 Tests. With this rare achievement, Ishant has joined James Anderson and Stuart Broad in the list of current pacers who have played 100 or more Test Matches.

• ONGCian International Tennis star VM. Ranjeet won Singles Title by winning the AITA Ranking Tournament 2021 held in Gurugram.

• ONGCian Yuki Bhambri, International Tennis star, made a comeback with a Doubles title at the ITF World Tour 2021 in Lucknow.

41. Corporate Social Responsibility (CSR)

• As one of India's foremost Nation Builders, your Company is committed towards its social responsibility and in this pursuit has spent Rs 5,530 Million during the FYRs 21, which is higher than spending obligations of the Company for the year.

• Your Company strongly stands by the nation in its fight against the Covid-19 virus, and took up various initiatives during the year to support the communities to tide over the health crisis.

• Annual Report of CSR for the FY 2020-21 in the prescribed format under the Companies (Corporate Social Responsibility) Rules is appended as Annexure- ‘D'.

42. Regulatory or Courts order

During FYRs 21, there was no order or direction of any court or tribunal or regulatory authority either affecting Company's status as a going concern or which significantly affected Company's business operations.

43. Directors' Responsibility Statement

Pursuant to the requirement under Section 134 of the Companies Act, 2013, with respect to Directors' Responsibility Statement, it is hereby confirmed that:

a) In the preparation of the annual accounts, the applicable accounting standards were followed and there were no material departures from the same;

b) The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 31.03.2021 and of the profit of the Company for the year ended on that date;

c) The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) The Directors had prepared the annual accounts of the Company on a ‘going concern' basis;

e) The Directors had laid down internal financial controls which were being followed by the Company and that such internal financial controls were adequate and were operating effectively; and

f) The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

44. Corporate Governance

A report on Corporate Governance, including details of Board Meeting held, as stipulated under Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is appended and forms part of the Annual Report.

45. Statutory Disclosures

Your Directors have made necessary disclosures, as required under various enactments including the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

46. Annual Return

Pursuant to Section 134(3)(a) read with Section 92(3) of the Companies Act, 2013 Annual Return of the Company is placed at https://www.ongcindia.com/wps/wcm/connect/ en/investors/annual-return/

47. Particulars of Employees

Your Company being a Government Company, the provisions of Section 197(12) of the Companies Act, 2013 and relevant Rules issued thereunder, are not applicable.

The terms and conditions of the appointment of Functional Directors are subject to the applicable guidelines issued by the Department of Public Enterprises (DPE), Government of India.

48. Audit Committee

In compliance with Section 177(8) of the Companies Act, 2013 & Regulation 18 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines the details regarding Audit Committee is provided under Corporate Governance Report which forms part of this Report.

In the absence of minimum 2 independent directors required to constitute the Audit Committee, all matters required to be considered by the audit committee were directly reviewed and considered by the Board since 08.09.2020.

There was no instance during FYRs 21, where the Board had not accepted any recommendation of the Audit Committee.

49. Vigil Mechanism

Details regarding Vigil Mechanism is provided under Corporate Governance report which forms part of this Annual Report.

Apart from vigil mechanism, Company has a full- fledged Vigilance Department headed by Chief Vigilance Officer. The Department operates on the guidelines of Central Vigilance Commission on Vigilance management in Public Sector Enterprises and is guided further by instructions issued by the Department of Personnel and

Training and MoPNG from time to time. Complaints are handled as per the complaint handling policies stipulated in Vigilance Manual issued by the Central Vigilance Commission.

The prime focus of Vigilance activities has been Preventive and Participative Vigilance by having regular interaction with employees and other stakeholders to spread awareness among the masses.

50. Risk Management Policy and Implementation

The Company has a Board approved Risk Management Policy. Risk framework and Risk portfolio are periodically monitored by the Risk Management Committee, Audit Committee and the Board.

51. Auditors

The Statutory Auditors of your Company are appointed by the CAG. There were 6 chartered accountants firms namely M/s. G.M. Kapadia & Co., M/s. R. Gopal & Associates, M/s. SARC & Associates, M/s. Kalani & Co., M/s. R.G.N. Price & Co. and M/s S. Bhandari & Co. who were appointed as Joint Statutory Auditors of the Company for FYRs 21.

The Statutory Auditors have been paid a total remuneration of Rs 45.32 Million towards audit fees, certification and other services. The above fees are exclusive of applicable GST and re-imbursement of actual travelling and out of pocket expenses.

52. Auditors' Report on the Accounts

Statutory Auditors Reports and the comments of CAG on standalone and consolidated accounts of the Company are placed along with respective financial statements for FYRs 21.

There is no qualification in the Statutory Auditors Reports on the Financial Statements of the Company for FYRs 21.

The comments of Comptroller & Auditor General of India (C&AG) form part of this Report and attached as Annexure- ‘E'.

During FYRs 21, no fraud has been reported by the Auditors of the Company.

53. Cost Audit

There were 6 cost accountants firms, namely M/s. M. Krishnaswamy & Associates, M/s. Musib & Co., M/s. Chandra Wadhwa & Co., M/s. Bandopadhyaya Bhaumik & Co., M/s. N. D. Birla & Co. and M/s. Joshi Apte & Associates, appointed by the Board as Joint Cost Auditors of the Company for FYRs 21. Necessary cost audit report shall be prepared by the said auditors and filed with the Central Government as per requirements under the Companies Act, 2013.

Company maintains Cost Records, as specified under Section 148(1) of the Companies Act, 2013.

54. Secretarial Audit

Secretarial Audit Report of your Company for the financial year 2020-21, as issued by M/s. Ashu Gupta & Co., Company Secretaries in wholetime practice is enclosed as Annexure- ‘F', which forms part of this Report.

Reply of management to the observations made in the Secretarial Audit Reports are as under:-

1. Board Composition & Evaluation

The Company, being a Central Public Sector Enterprise (CPSE), composition of its Board of Directors is the prerogative of the President of India as provided under the Articles of Association of the Company. The Company has been requesting the MoPNG for appointment of requisite number of Independent Directors including Independent Woman Director, from time to time, to meet statutory requirements. As the Company has only one Independent Director since 08.09.2020, meeting of Independent Directors could not be convened.

The Ministry of Corporate Affairs (MCA) vide notifications dated 05.06.2015 and 05.07.2017 exempted government companies from the provisions relating to appointment, performance evaluation and remuneration of directors under the Companies Act, 2013. The Company has requested to the Department of Public Enterprises (DPE) to arrange similar exemptions under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in line with the Companies Act, 2013.

2. Audit Committee and Nomination & Remuneration Committee

There being only one Independent Director on the Board since 08.09.2020, Audit Committee and Nomination & Remuneration Committee were not constituted for want of minimum 2 independent directors. Agenda items pertaining to these committees were directly considered at the Board meeting.

55. Details of changes in Directors and other Key Managerial Personnel:

The following changes took place in the Board/ Key Managerial Personnel of the Company during the year and up-to date of Report:


i. Shri Om Prakash Singh has been appointed as the Director (Technology & Field Services) of the Company w.e.f. 01.04.2020.

ii. Shri Anurag Sharma has been appointed as the Director (Onshore) of the Company w.e.f. 01.06.2020.

iii. Shri Subhash Kumar, Director (Finance) has been entrusted with the additional charge of Chairman & Managing Director w.e.f. 01.04.2021 and accordingly, he has been appointed as the Chairman & Managing Director and Chief Executive Officer (CEO) of the Company.

iv. Shri Vivek Chandrakant Tongaonkar, Executive Director (Finance), has been appointed as Chief Financial Officer (CFO) of the Company w.e.f. 23.04.2021.

v. Shri Rajni Kant has been appointed as the Company Secretary w.e.f. 29.06.2021.


i. Shri Shashi Shanker, on his superannuation, ceased to be the Chairman & Managing Director of the Company w.e.f. 01.04.2021.

ii. Shri Rajesh Kakkar, on his superannuation, ceased to be the Director (Offshore) w.e.f. 01.05.2021.

iii. Smt. Ganga Murthy, Independent Director ceased to be director of the Company w.e.f. 08.09.2020.

iv. Shri Sanjay Kumar Moitra, on his superannuation, ceased to be Director (Onshore) of the Company w.e.f. 01.06.2020.

v. Shri M E V Selvamm, ceased to be the Company Secretary w.e.f. 25.06.2021.

The Board places on record its appreciation for commendable contribution made by S/ Shri Shashi Shanker, Sanjay Kumar Moitra, Rajesh Kakkar and Smt. Ganga Murthy during their tenure on the Board of your Company.

Directors liable to retire by Rotation

Dr. Alka Mittal, Director (Human Resources) is liable to retire by rotation and being eligible is proposed to be re-appointed at the Annual General Meeting.

As on 31.03.2021, there were 10 Directors on the Board, comprising of 7 Whole-time Directors (including the Chairman & Managing Director) and 3 Non-Executive Directors - 2 Government Nominee Directors and 1 Independent Director. There were vacancies for 8 Independent Directors to meet the statutory requirements.

Declaration by Independent Directors

The Company has received the declaration from Independent Directors confirming that they met the criteria prescribed under the provisions of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

56. Acknowledgement

Your Directors are highly grateful for all the help, guidance and support received from the Ministry of Petroleum and Natural Gas, Ministry of Finance, DPE, MCA, Ministry of External Affairs, and other agencies in Central and State Governments. Your Directors acknowledge the constructive suggestions received from Auditors and Comptroller and Auditor General of India and are grateful for their continued support and cooperation.

Your Directors thank all share-owners, business partners and all members of the ONGC Family for their faith, trust and confidence reposed in the Board.

Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, in spite of the challenging and unprecedented pandemic situation, to ensure that the Company continues to sustain, grow and excel.

On behalf of the Board of Directors
27.08.2021 (Subhash Kumar)
New Delhi Chairman & Managing Director