A Study on

EMPLOYEE RETENTION

With reference to

GAIL (INDIA) LIMITED, RAJAHMUNDRY.

Project report submitted for the

Partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

Submitted by

SHAIK HEPSIBHA
Registered No: 17551E00A1

Under the Guidance of

NAGESWARI
Designation

DEPARTMENT OF MANAGEMENT STUDIES

GODAVARI INSTITUTE OF ENGINEERING AND TECHNOLOGY

(AUTONOMOUS)
(Permanent Affiliation to JNTUK, Kakinada, approved by AICTE, Accredited by NBA)

2017-19
 DECLARATION

I, SHAIK HEPSIBHA declare that the project work entitled- “A Study on

EMPLOYEE RETENTION with reference to GAIL (INDIA) LIMITED, RAJAHMUNDRY”
carried out by me for the partial fulfillment for the award of degree of Master of Business
Administration (MBA) under JNTUK. This Project was undertaken as part of academic
curriculum according to the JNTUK norms and it has no commercial interest and motive. It is
my original work and not submitted to any other University/Institution for any purpose.

Place: Rajahmundry SHAIK HEPSIBHA

Date: 30:04:2019 (Regd.No.)17551E00A1

GODAVARI INSTITUTE OF ENGINEERING AND TECHNOLOGY (A)

DEPARTMENT OF MANAGEMENT STUDEIS

CERTIFICATE

This is to certify that the Project work entitled- “A Study on EMPLOYEE

RETENTION with reference to GAIL(INDIA) LIMITED, RAJAHMUNDRY” that is
being Submitted by Name of the Student in partial fulfillment for the award of Master of
Business Administration (MBA) to the JNTU-K, is a record of bonafide work carried out by
him/her under our guidance and supervision.

The results presented in this project have not been submitted to any other
University or Institute for the award of any degree or diploma.

Head of the Department Internal Examiner

External Examiner
 ACKNOWLEDGEMENTS

I would like to express my profound sense of gratitude to Name of the Internal

Examiner for his/her expert guidance, constructive suggestions and encouragement.

I would like to express my sincere thanks to Dr P R K RAJU, Director, DMS, GIET

Rajahmundry for extending every possible help during the course of the study.

I earnestly express my sincere gratitude to GAIL (INDIA) LIMITED, RAJAHMUNDRY

for providing Industry exposure through my study. SP.REDDY is very supportive in
completion of my study.

I am also thankful to Dr. T V PRASAD, Principal, GIET (B), Rajahmundry for his
support and encouragement during the course of my study.

I am also thankful to Management, GIET, Rajahmundry for extending every possible

help during my course of study

I am very much thankful to my family members and friends for their support and
encouragement.

SHAIK HEPSIBHA

(Regd. No.):17551E00A1
 CONTENTS

PAGE NO.

CHAPTER-I

 INTRODUCTION 01

 NEED FOR THE STUDY 45

 OBJECTIVES OF THE STUDY 44

 SCOPE OF THE STUDY 48

 RESEARCH METHODOLOGY 49

 LIMITATIONS OF THE STUDY 92

CHAPTER-II

INDUSTRY PROFILE &

COMPANY PROFILE 12

CHAPTER-III

THEORETICAL FRAME WORK 65

CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION 75

CHAPTER-V

FINDINGS & SUGGESTIONS 90

CONCLUSIONS

ANNEXURE

QUESTIONNAIRE / BALANCE SHEETS 96

REFERENCE 95
 INTRODUCTION TO HRM

Human Resource Management:

Human Resource Management (HRM) is the practise of recruiting, hiring, deploying and
managing an organizations employee. It is designed to maximize employee performance in service of
an employer's strategic objectives.

Human Resource Management is a management function that helps manager’s recruit, select,
train and develops members of an organization. It focuses on the people in the organizations.

HRM deals with the design of formal systems in an organization to ensure the effective and
efficient use of human talent at accomplishing organizational goals.

Definitions of HRM
 HRM is concerned with the people dimension in management. Since every organization is made
up to people, acquiring their skills, motivating them to higher levels of performance and ensuring
that they continue to maintain their commitment to the organization are essential to achieving
organizational objectives.

 Organizations are not bricks, mortar, machineries or inventories. They are people. It is the people
who staff and manage the organization.

Objectives of Human Resource Management

Objectives of Human Resource Management can be classified under four major categories.
1. Societal
2. Organizational
3. Functional
4. Personal
• Societal: -HRM may contribute ethically and socially regarding the needs and challenges
emerging in the society. If an organization fails to use its resources for society benefits in ethical
ways it may lead to restriction by society. For example, society may limit the HR decisions through

1
laws in hiring; it may limit laws that address discrimination, laws regarding safety or other areas of
concern.

• Organizational: -The main objective of HRM is to achieve organizational goals by bringing

organizations effectiveness. HRM is not an end but it is a means to assist the organization in order to
attain its objectives.

• Functional: -Functional objective of HRM deals with contributions of each department

regarding their need and effectiveness in order to attain organization goal. All the resource or skill set
get wasted if HRM is not able to fulfill up with the organizational demand.

• Personal: - HRM also deals with personal objectives of the individuals so that personal and
organizational objectives can be met or order to achieve maximum production and attain competitive
advantage. These personal objectives are important in order to maintain, retain and to motivate
employees. If this not done employees dissatisfaction and poor performance will result in attrition or
low productivity

Principles of Human Resource Management

Principles are fundamental beliefs - generally constant and unchangeable. The principles of human
resource management, derived from legislation, management philosophy and organizational values,
are touchstones which enable managers to exercise judgment in a variety of situations.

• Reasonableness
Reasonableness means conduct which is sensible, in moderation. The principles guide human
resource management in government

.
• Merit
The principle of merit means that decisions about appointments and pay are based on an unbiased
assessment of one's competencies (e.g. knowledge, skills and abilities). This principle is derived from
The Civil Service Act.

2
• Fairness
Fairness refers to conduct that is unbiased, just and honest. It may also mean treating employees
consistently. The principle of fairness, enshrined in The Labour Relations Act, is fundamental to
employee relations.

• Diversity
Diversity recognizes that people have individual characteristics that make them distinct from others,
including age, language, culture, ethnicity, skills, gender, abilities, talents and perspectives. Diversity
enriches an environment by facilitating the exchange of different perspectives and ideas.

• Equity
Equity means applying the principles of justice to correct or supplement employment
practices to redress disadvantages experienced by individuals in the workplace. Employment equity is
achieved when organizations are representative, fair, inclusive, diverse and respectful of differences.
Equity sometimes means treating people the same in spite of their differences. It can also mean
treating people differently as a means to achieve equality. This principle is enshrined in the based on
sound judgment. The principle of reasonableness is a key concept in The Labour Relations Act and
The Manitoba Human Rights Code.

FUNCTIONS OF HRM
The major functions of human resource management are as follows:
1. Managerial Functions
2. Operative Functions
3. Advisory Functions.
1. Managerial Functions:
The Human Resource Manager is a part of the organisational management. So he must
perform the basic managerial functions of planning, organising, directing and controlling in relation
to his department.
There functions are briefly discussed below:

3
• Planning:
To get things done through the subordinates, a manager must plan ahead. Planning is
necessary to determine the goals of the organisation and lay down policies and procedures to reach
the goals. For a human resource manager, planning means the determination of personnel programs
that will contribute to the goals of the enterprise, i.e., anticipating vacancies, planning job
requirements, job descriptions and determination of the sources of recruitment.

The process of personnel planning involves three essential steps:

 Firstly, a supply and demand forecast for each job category is made. This step requires knowledge
to both labour market conditions and the strategic posture and goals of the organisation.
 Secondly, net shortage and excess of personnel by job category are projected for a specific time
horizon.
 Finally, plans are developed to eliminate the forecast shortages and excess of particular categories
of human resources.

• Organizing:
Once the human resource manager has established objectives and developed plans and
programs to reach them, he must design and develop organisation structure to carry out the various
operations.
The organisation structure includes:
• Grouping of personnel activity logically into functions or positions
• Assignment of different functions to different individuals
• Delegation of authority according to the tasks assigned and responsibilities involved
• Co-ordination of activities of different individuals

• Directing:
The plans are to be pure into effect by people. But how smoothly the plans are implemented
depends on the motivation of people. The direction function of the personnel manager involves
encouraging people to work willingly and effectively for the goals of the enterprise. In other words,
the direction function is meant to guide and motivate the people to accomplish the personnel
programs. The personnel manager can motivate the employees in an organisation through career

4
 planning, salary administration, ensuring employee morale, developing cordial relationships and
provision of safety requirements and welfare of employees.The motivational function poses a great
challenge for any manager. The personnel manager must have the ability to identify the needs of
employees and the means and methods of satisfy those needs. Motivation is a continuous process as
new needs and expectations emerge among employees when old ones are satisfied.

• Controlling:
Controlling is concerned with the regulation of activities in accordance with the plans, which in
turn have been formulated on the basis of the objectives of the organisation. Thus, controlling
completes the cycle and leads back to planning. It involves the observation and comparison of results
with the standards and correction of deviations that may occur. Controlling helps the personnel
manager to evaluate the control the performance of the personnel department in terms of various
operative functions. It involves performance appraisal, critical examination of personnel records and
statistics and personnel audit.

2. Operative Functions:
The operative functions are those tasks or duties which are specifically entrusted to the human
resource or personnel department. These are concerned with employment, development,
compensation, integration and maintenance of personnel of the organisation.
The operative functions of human resource or personnel department are discussed below:

• Employment:
The first operative function of the human resource of personnel department is the employment
of proper kind and number of persons necessary to achieve the objectives of the organization. This
involves recruitment, selection, placement, etc. of the personnel. Before these processes are
performed, it is better to determine the manpower requirements both in terms of number and quality
of the personnel. Recruitment and selection cover the sources of supply of labour and the devices

5
designed to select the right type of people for various jobs. Induction and placement of personnel for
their better performance also come under the employment or procurement function.

• Development:
Training and development of personnel is a follow up of the employment function. It is a duty
of management to train each employee property to develop technical skills for the job for which he
has been employed and also to develop him for the higher jobs in the organisation. Proper
development of personnel is necessary to increase their skills in doing their jobs and in satisfying
their growth need.For this purpose, the personnel departments will device appropriate training
programs. There are several on- the-job and off-the-job methods available for training purposes. A
good training program should include a mixture of both types of methods. It is important to point out
that personnel department arranges for training not only of new employees but also of old employees
to update their knowledge in the use of latest techniques.
• Compensation:
This function is concerned with the determination of adequate and equitable remuneration of
the employees in the organisation of their contribution to the organisational goals. The personnel can
be compensated both in terms of monetary as well as non-monetary rewards. Factors which must be
borne in mind while fixing the remuneration of personnel are their basic needs, requirements of jobs,
legal provisions regarding minimum wages, capacity of the organisation to pay, wage level afforded
by competitors etc. For fixing the wage levels, the personnel department can make use of certain
techniques like job evaluation and performance appraisal.

• Maintenance (Working Conditions and Welfare):

Merely appointment and training of people is not sufficient; they must be provided with good
working, conditions so that they may like their work and workplace and maintain their efficiency.
Working conditions certainly influence the motivation and morale of the employees. These include
measures taken for health, safety, and comfort of the workforce. The personnel department also
provides for various welfare services which relate to the physical and social well-being of the
employees. These may include provision of cafeteria, rest rooms, counselling, group insurance,
education for children of employees, recreational facilities, etc.

6
• Motivation:
Employees work in the organisation for the satisfaction of their needs. In many of the cases, it is
found that they do not contribute towards the organisational goals as much as they can. This happens
because employees are not adequately motivated. The human resource manager helps the various
departmental managers to design a system of financial and non-financial rewards to motivate the
employees.

• Personnel Records:
The human resource or personnel department maintains the records of the employees working in
the enterprise. It keeps full records of their training, achievements, transfer, promotion, etc. It also
preserves many other records relating to the behaviour of personnel like absenteeism and labour
turnover and the personnel programs and policies of the organisation.

• Industrial Relations:
These days, the responsibility of maintaining good industrial relations is mainly
discharged by the human resource manager. The human resource manager can help in collective
bargaining, joint consultation and settlement of disputes, if the need arises. This is because of the fact
that he is in possession of full information relating to personnel and has the working knowledge of
various labour enactments.
The human resource manager can do a great deal in maintaining industrial peace in the organisation
as he is deeply associated with various committees on discipline, labour welfare, safety, grievance,
etc. He helps in laying down the grievance procedure to redress the grievances of the employees. He
also gives authentic information to the trade union leaders and conveys their views on various labour
problems to the top management.

• Separation:
Since the first function of human resource management is to procure the employees, it is
logical that the last should be the separation and return of that person to society. Most people do not
die on the job. The organisation is responsible for meeting certain requirements of due process in
separation, as well as assuring that the returned person is in as good shape as possible. The personnel
manager has to ensure the release of retirement benefits to the retiring personnel in time.

7
 3. Advisory Functions:
Human resource manager has specialised education and training in managing human
resources. He is an expert in his area and so can give Advise on matters relating to human resources
of the organisation. He offers his Advise to:

• Advised to Top Management: Personnel manager advises the top management in

formulation and evaluation of personnel programs, policies and procedures. He also gives advice for
achieving and maintaining good human relations and high employee morale.

• Advised to Departmental Heads: Personnel manager offers advice to the heads of various
departments on matters such as man power planning, job analysis and design, recruitment and
selection, placement, training, performance appraisal, etc.

Importance of Human Resource Management

An organization cannot build a good team of working professionals without good Human
Resources. The key functions of the Human Resources Management (HRM) team include recruiting
people, training them, performance appraisals, motivating employees as well as workplace
communication, workplace safety, and much more.

• Recruitment and Training

This is one of the major responsibilities of the human resource team. The HR managers come up with
plans and strategies for hiring the right kind of people. They design the criteria which is best suited
for a specific job description. Their other tasks related to recruitment include formulating the
obligations of an employee and the scope of tasks assigned to him or her. Based on these two factors,
the contract of an employee with the company is prepared. When needed, they also provide training
to the employees according to the requirements of the organization. Thus, the staff members get the
opportunity to sharpen their existing skills or develop specialized skills which in turn, will help them
to take up some new roles.

8
• Performance Appraisals

HRM encourages the people working in an organization, to work according to their potential and
gives them suggestions that can help them to bring about improvement in it. The team communicates
with the staff individually from time to time and provides all the necessary information regarding
their performances and also defines their respective roles. This is beneficial as it enables them to form
an outline of their anticipated goals in much clearer terms and thereby, helps them execute the goals
with best possible efforts. Performance appraisals, when taken on a regular basis, motivate the
employees.

• Maintaining Work Atmosphere

This is a vital aspect of HRM because the performance of an individual in an organization is largely
driven by the work atmosphere or work culture that prevails at the workplace. A good working
condition is one of the benefits that the employees can expect from an efficient human resource team.
A safe, clean and healthy environment can bring out the best in an employee. A friendly atmosphere
gives the staff member’s job satisfaction as well.

• Managing Disputes

In an organization, there are several issues on which disputes may arise between the employees and
the employers. You can say conflicts are almost inevitable. In such a scenario, it is the human
resource department which acts as a consultant and mediator to sort out those issues in an effective
manner. They first hear the grievances of the employees. Then they come up with suitable solutions
to sort them out. In other words, they take timely action and prevent things from going out of hands.

• Developing public relations

The responsibility of establishing good public relations lies with the HRM to a great extent.
They organize business meetings, seminars and various official gatherings on behalf of the company
in order to build up relationships with other business sectors. Sometimes, the HR department plays an
active role in preparing the business and marketing plans for the organization too.

9
 Any organization, without a proper setup for HRM is bound to suffer from serious problems
while managing its regular activities. For this reason, today, companies must put a lot of effort and
energy into setting up a strong and effective HRM.

Scope of HRM
The scope of HRM is indeed and vast. All the major activities of the working life of a worker
– from the time of his or her entry in an organization until he or she leaves – come under the purview
of HRM specifically the activities included are HR planning, job analysis and design, recruitment,
selection, orientation and placement, training and development, performance appraisal and job
evaluation, employee and executive remuneration, motivation and communication, welfare, safety
and health, industrial relation.

Introduction to Employee Retention

Employee retention refers to the ability of an organization to retain its employees. However,
many consider employee retention as relating to the efforts by which employers attempt to retain
employees in their workforce. In this sense, retention becomes the strategies rather than the outcome.

Employee retention refers to the various policies and practices which let the employees stick
to an organization for a longer period of time. Every organization invests time and money to groom a
new joiner, make him a corporate ready material and bring him at par with the existing employees.
The organization is completely at loss when the employees leave their job once they are fully trained.
Employee retention takes into account the various measures taken so that an individual stays in an
organization for the maximum period of time.

Objectives of Employee Retention

It is very important for an organization to attract, hire, and retain the right resources. Most of
the organizations are very effective, when it comes to attracting and hiring new talents, but they fail
in retaining the same talents.

There can be many reasons for an employee to leave an organization. It is very essential for
an organization to know the reasons, which can help the organization in making the job attractive and
encourage the employees to stay with the organization.

10
 The first and foremost requirement is to measure the key factors which influence the retention
rates, such as salary expectations, employee engagement, working environment and boss/managers.
Once these measurements are identified, the initiatives are to be planned and to be implemented for
improvement of the retention rate.

In an organization, the core driver of retention policies is the strategies behind them. The
team of line managers and the leaders are the owners of the documentation and the HR department
has to measure the progress, successes and failures of the strategies applied. The ownership of the
strategies falls on the team of line managers and the leaders, who need to protect the work interests
of the employees and retain them.

Finally, the retention program has to be measured. The HR department has to measure the
performance of the retention plan. They should measure the difference in the turnover, the
development of the attrition and the satisfaction of employees in the program.

11
COMPANY PROFILE

GAS AUTHORITY OF INDIA LIMITED (GAIL) was incorporated in August 1984 as a

Central Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas
(MoP&NG), with the mission of accelerating and optimizing the effective and economic use of
Natural Gas and its fractions for the benefit of the national economy. As a Public Sector Undertaking,
the President of India holds more than 57% of the shares the company. GAIL (India) Limited, India’s
largest Natural Gas Company is one of the seven Maharatna Public Sector Undertakings (PSUs) and
the youngest PSU to be accorded Maharatna status.

GAIL, having started as a Gas Transmission Company during the late eighties, has grown
organically by building a large network of Natural Gas pipelines covering over 11,000 km; two LPG
Pipelines covering more than 2,000 km; six Gas Processing plants for production of LPG and other
liquid hydrocarbons, with a combined production capacity of 1.39 MMTPA, and a gas based
integrated petrochemical plant of capacity 410,000 TPA of polymer, which is further being expanded
to installed capacity of 810,000 TPA. The Company also has 70% equity share in Brahmaputra
Cracker and Polymer Limited (BCPL) which is setting up a 280,000 TPA polymer plant in Assam.
Further, GAIL is a co-promoter with 15.5% equity stake in ONGC Petro-additions Limited (OPaL)
which is implementing a green field petrochemical complex of 1.4 MMTPA polymer capacity at
Dahej in the State of Gujarat.

Keeping in mind the growth and consolidation requirements, the company has integrated
upstream into the business of Exploration & Production with participating interests in several blocks
awarded under New Exploration Licensing Policy (NELP) bidding rounds of Government of India.
GAIL is currently participating in 15 E&P Blocks, in basins such as Assam-Arakan (2), Andaman
(1), Cambay (4), Cauvery (2), Gujarat Kutch (2), Mahanadi (1), Myanmar (2) and Rajasthan (1).
GAIL has partnership in these blocks with various companies such as ONGC (3), OIL (1), GSPC (2),
BPRL (1), Hardy Exploration & Production (1), JOGPL (1), ENI (1) and Daewoo (2) as Operators.
Out of these 15 E&P blocks, 2 blocks are overseas (A-1 and A-3 blocks in Myanmar).GAIL is also a
member of National Gas Hydrate Programmed (NGHP) being coordinated by DGH and is actively
involved in activities related to Gas Hydrate exploration.GAIL has also integrated downstream into

12
the high growth retail City Gas Distribution business both in India and abroad. GAIL is today an
integrated energy company in the hydrocarbon sector with focus on gas and beyond.

Global context and International forays

GAIL has overseas presence in five countries. The Company has a wholly owned subsidiary,
GAIL Global (USA) Inc. (GGUI) in USA. This US subsidiary has formed a JV with Carrizo Oil &
Gas Inc. to acquire stake in its Eagle Ford Shale acreage. GGUI has formed subsidiary, GAIL Global
(USA) LNG LLC (GGULL) which has booked 2.3 MMTPA capacity in Dominion Cove Point LNG
liquefaction project and also signed a Gas Sale and Purchase Agreement (GSPA) with WGL
Midstream Inc. for procurement of corresponding volume of Natural Gas.

GAIL has another wholly-owned subsidiary company viz. GAIL Global (Singapore) Pte. Ltd
in Singapore for trading in LNG & Petrochemicals and for undertaking overseas investments.GAIL is
equity partner in A-1 & A-3 E&P blocks in Myanmar where GAIL has 8.5% participating interest.
Besides, GAIL has 4.2% equity partnership in South East Asia Gas Pipeline Company (SEAGP)
which is transporting gas from Myanmar to China from these blocks. GAIL has made investments in
three companies in downstream business in Egypt and China.

GAIL has executed a long-term LNG Sale and Purchase Agreement with Sabine Pass
Liquefaction LLC for purchase of 3.50 Million Tons per Annum (MMTPA) of LNG from Sabine
Pass Liquefaction terminal project located in Cameron Parish, Louisiana, and USA. GAIL has also
signed a long-term agreement with Gazprom marketing and Trading Singapore for supply of 2.5
MMTPA of LNG from Russia.

GAIL has also signed a GSPA to source 38 MMSCMD of natural gas through transnational
pipeline from Turkmenistan and is scouting for opportunities along natural gas value chain in North
America, Africa and South East Asia.

History

GAIL (India) Limited was incorporated in August 1984 as a Central Public Sector
Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). The company was
formerly known as Gas Authority of India Limited. It is India's principal gas transmission and

13
marketing company. The company was initially given the responsibility of construction, operation
and maintenance of the Hazira – Vijaypur – Jagdishpur (HVJ) pipeline project. It was one of the
largest cross-country natural gas pipeline projects in the world. This 1750-kilometre-long pipeline
was built at a cost of ₹17 billion (US$250 million) and it laid the foundation for development of
market for natural gas in India. GAIL commissioned the 1,750 kilometers (1,090 mi) Hazira-
Vijaipur-Jagdishpur (HVJ) pipeline in 1991. Between 1991 and 1993, three liquefied petroleum
gas (LPG) plants were constructed and some regional pipelines acquired, enabling GAIL to begin its
gas transportation in various parts of India.

GAIL began its city gas distribution in New Delhi in 1997 by setting up nine compressed
natural gas (CNG) stations.

In order to secure gas for its mainstream business, the Exploration and Production department
was created. Today GAIL is a partner in the Dawoo-OVL led consortium in two offshore blocks in
Myanmar which have made a gas discovery. The bulk of its blocks are located in India in the prolific
basins of Cambay, Assam-Arakan, Mahanadi, Krishna Godavary deep water and on land, Cauvery on
land and deep water and western offshore. It is actively scouting for foreign blocks both exploratory
or discovery.GAIL today has reached new milestones with its strategic diversification into
petrochemicals, telecom and liquid hydrocarbons besides gas infrastructure.

The company has also extended its presence in power, liquefied natural gas re-gasification,
city gas distribution and exploration & production through participation in equity and joint ventures.
Incorporating the new-found energy into its corporate identity, Gas Authority of India was renamed
GAIL (India) Limited on 22 November 2002.

GAIL (India) Limited has shown organic growth in gas transmission through the years by
building large network of trunk pipelines covering length of around 10,700 kilometres (6,600 mi).
Leveraging on the core competencies, GAIL played a key role as gas market developer in India for
decades catering to major industrial sectors like power, fertilizers, and city gas distribution. GAIL
transmits more than 160 mm of gas through its dedicated pipelines and have more than 70% market
share in both gas transmission and marketing

Infrastructure

14
 GAIL owns the country's largest pipeline network, the cross-country 2300 km Hazira-
Vijaipur-Jagdishpur pipeline with a capacity to handle 33.4 MMSCMD gas. Today the company
owns and operates more than 11000 km long cross country natural Gas Pipeline in India having
presence in 22 states in the country. It also owns and operates more than 2000 km long LPG pipelines
in the country and has the pride to operate one of the world's longest exclusive LPG pipeline in the
country from Jamnagar in Gujarat to Loin in Uttar Pradesh. The company also owns and operates
seven mega LPG recovery plants in the country today and has to its credit almost 20% of domestic
LPG produced and supplied for the domestic usage through its sisters PSUs like IOCL, BPCL and
HPCL. GAIL is one of the major petrochemical conglomerates in the country today with India's
largest gas based petrochemicals in operation since 1999. In petrochemicals it has its own gas based
integrated petrochemical plant and also the ownership of 70% in dual fuel petrochemicals in Assam,
Brahamaputra Cracker and Polymer Limited and one of the major equity partners in OPal.

The company supplies gas to power plants for generation of over 4,000 MW of power to
fertilizer plants for production of 10 million tonnes of urea and to several other industries. The
regional pipelines are in Mumbai, Gujarat, Rajasthan, Andhra Pradesh, Tamil Nadu, Pondicherry,
Assam, Tripura, Madhya Pradesh, Haryana, Uttar Pradesh and Delhi. The Company has established
six gas processing (LPG) plants, four along the HVJ pipeline two at Vijaipur, MP, one at Vaghodia,
Gujarat and Auraiya, UP and one each in Lakwa, Assam and Usar, Maharashtra. These plants have
the capacity to produce nearly 1 million tpa of LPG. GAIL has also set up several compressor stations
for boosting the gas pressure to desired levels for its customers and internal users.

GAIL also possesses a vast telecommunication network that contributes significantly to the
high level of system reliability of operations, on-line real time communication and monitoring higher
productivity. GAIL became the first Infrastructure Provider Category II Licensee and signed the
country's first Service Level Agreement for leasing bandwidth in the Delhi-Vijaipur sector in 2001,
through its telecom business GAILTEL.

GAIL Project offices have been set up where its plants, complexes, etc. are located.

In 2001, GAIL commissioned the worlds longest and India's first cross country LPG transmission
pipeline from Jamnagar to Loni.

15
Natural gas transmission
GAIL has built a network of trunk pipelines covering length of around 11,000 km. Leveraging
on the core competencies, GAIL played a key role as gas market developer in India for decades
catering to major industrial sectors like power, fertilizers, and city gas distribution. GAIL transmits
more than 160 MMSCMD of gas through its dedicated pipelines and have more than a 70% market
share in both gas transmission and marketing.

However, there are regional imbalances in the gas supply across the country. To bridge this
gap in infrastructure, the Ministry of Petroleum and Natural Gas, in 2007, authorized five new
pipelines to GAIL covering a length of over 5,500 km.

Table:length km/ capacity in MMSCMD

S. no. Pipeline Length km/ capacity in Commissioning

MMSCMD

1. Dadri Bawana Nangal* 610 km/31 MMSCMD 2011–12

2 Chainsa Jhajjar Hissar** 300 km/35 MMSCMD 2011–12

3. Jagdishpur Haldia 2000 km / 32 MMSCMD 2013–14

4. Dabhol Bangalore[10] 1386 km/ 16 MMSCMD 2013–14

5. Kochi Kanjirikkod 860 km / 16 MMSCMD 2012–13

Bangalore

TOTAL 5156 km / 130 MMSCMD

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Mission and Vision

Mission
To Accelerate and Optimize the effective and economic use of Natural Gas and its fractions
for the benefit of the National Economy.

Vision
To be the leading company in Natural Gas and Beyond, with Global Focus, Committed to Customer
Care, Value Creation for all Stakeholders and Environmental Responsibility.

Key Elements of GAIL's Vision

Ethics

We are transparent, fair and consistent in dealing with all people. We insist on honesty, integrity and
trustworthiness in all our activities.

Customer

We strive relentlessly to exceed the expectations of our customers, both internal and external. Our
customers prefer us.

People

We believe our success is driven by the commitment and excellence of our people. We attract and
retain result-oriented people who are proud their work and are satisfied with nothing less than the
very best in everything they do. We encourage individual initiative by creating opportunities for our
people to learn and grow. We respect the individual rights and dignity of all people.

Shareholders

We meet the objectives of our shareholders by providing them superior returns and value through
their investments in us.

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Safety, Health and Environment

We promote highest levels of safety in our operations, health of our employees and a clean
environment. We strive for continuous development of the communities in which we operate.

Technology

We believe technology is the key to the future success of our organisation. We advocate use of 'best-
in-class' technologies.

Gas Marketing

Since inception in 1984, GAIL has been the undisputed leader in the marketing, transmission
and distribution of natural gas in India. As India's leading natural gas major, it has been instrumental
in the development of the natural gas market in the country.

GAIL sells around 51% (excluding internal usage) of the natural gas sold in the country. Of
this, 37% is sold to the power sector and 26% to the fertiliser sector. GAIL is supplying around 60
MMSCMD of natural gas from domestic sources to customers across India. These customers range
from the smallest of companies to mega power and fertiliser plants. GAIL has adopted a gas
management system to handle multiple sources of supply and delivery of gas in a co-mingled form
and provide a seamless interface between shippers, customers, transporters and suppliers. GAIL is
present in 11 states: Gujarat, Rajasthan, Madhya Pradesh, Delhi, Haryana, Uttar Pradesh,
Maharashtra, Tamil Nadu, Andhra Pradesh, Assam, and Tripura. They are further extending their
coverage to states of Kerala, Karnataka, Punjab, Uttarakhand, West Bengal and Bihar through their
upcoming pipelines.

LNG

By the end of 2009–10, the gas consumption in India stood at 165 MMSCMD with LNG
occupying 15% (25 MMSCMD) of the entire gas market. The proportion of imported LNG is
expected to increase to anywhere between 20% and 30% by 2015. GAIL has been playing a principal
role on its part in ensuring that the government's objective of achieving energy security is achieved
through a judicious mix of energy portfolio.

As a dominant player in the gas markets, GAIL play a major role in sourcing of LNG and
creation of the pipeline infrastructure to form an efficient national grid that will ensure connectivity to

18
all demand centers. To achieve these objectives, GAIL is actively pursuing LNG sourcing from major
LNG producers/sellers all across the globe and has been adopting a strategy to have a mixed portfolio
of spot, short/mid-term, and long-term deals.

To ensure long-term supplies in the past, GAIL has promoted Petronet LNG Ltd (PLL), along
with oil majors Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC) and Bharat
Petroleum Corporation Limited (BPCL) for the import of LNG into India. PLL is importing 7.5
MMTPA of LNG from Qatar for its Dahej Terminal on long term contract basis. PLL will also be
importing 1.44 MMTPA from Gorgon LNG project, Australia for its Kochi Terminal. GAIL is also
the sole transporter of the entire RLNG and a major off-taker from both these contracts.

Further, from time to time GAIL had imported LNG on a spot basis to cater to additional gas
demand in India. GAIL imported its first spot cargo from Algeria in May 2006 and within a shorter
span has gone on to become a major importer of LNG in Asia. GAIL had imported five spot cargoes
in the first half of 2011. In addition, GAIL has imported 1 LNG cargo from the international market
through PLL.GAIL had also inked a short term deal with Marubeni Corporation to purchase up to
0.50 MMTPA of LNG on a medium term basis and has already received three LNG cargoes under the
contract. The government of India has entrusted GAIL with the responsibility of reviving the LNG
terminal at Dabhol in Maharashtra, as well as sourcing LNG for the terminal. GAIL is exploring all
the possible options for sourcing around five MMTPA of LNG for the Dabhol Terminal. GAIL has
stepped up efforts to source LNG on a long-term basis from various projects across the globe
including Qatar, Australia, Russia and US.Until now GAIL has signed 23 master sales and purchase
agreements (MSPA) with various LNG suppliers in its endeavor to source spot and medium term
from time to time. GAIL is also in talks to add six to eight additional suppliers under the umbrella.

LPG Production and Transmission

Liquefied petroleum gas (LPG) is the most widely used domestic and commercial fuel in
India. Over the past four years GAIL has emerged as one of the major LPG producers in the country.

Around 90 per cent of the LPG is consumed in India as fuel by the household sector, while
the balance is sold to industrial and commercial customers. GAIL has seven LPG Plants, two at

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Vijaipur and one at Vaghodia, and one each in Lakwa (Assam), Auraiya (UP), Gandhar (Gujarat) and
Usar (Maharashtra), producing over 1 million TPA LPG and other

liquid hydrocarbons. LPG is sold in bulk to LPG retailing companies such IOCL, BPCL, HPC
L and other liquid hydrocarbon products are sold to industries.

GAIL is the first company in India to own and operate pipelines for LPG transmission. It has
1,900 km LPG pipeline network 1,300 km of which connects the western and northern parts of India
and 600 km of networks is in the southern part of the country connecting the Eastern Coast. The LPG
transmission system has a capacity to transport 3.8 MMTPA of LPG. LPG transmission through
pipelines was 3337 TMT in the year 2010–11.

GAIL has a share of about 10% of the Indian LPG market in LPG production and 7% in LPG sales.

Petrochemicals
GAIL diversified from gas marketing and transmission into the polymer business by setting
up North India's first gas based Petrochemicals complex. Even without having any prior experience in
petrochemicals, GAIL commissioned the plant successfully in year 1999 by rigorous teamwork and
project management capabilities. The petrochemical business is one of the core focus area of
GAIL.GAIL has set up a world-scale gas cracker plant, petrochemical complex at Pata in Auraiya
district of Uttar Pradesh with an investment of ₹25 billion (US$370 million). The plant has a design
capacity to produce 100 TPA of ethylene (expandable to 5 TPA). Downstream units
include HDPE production unit of 1-TPA capacity and an LLDPE/HDPE swing plant of 16-TPA
capacity.

This complex recovers ethane-propane (C2/C3) from natural gas from Vijaipur through the
HVJ pipeline for producing polymers. Conversion of ethane-propane (otherwise used as fuel) from
natural gas will give tremendous value addition.GAIL Pata is the only HDPE/LLDPE plant operating
in Northern India and has a dominant market share in North India. The primary thrust markets for the
polymers had been Western India, but, with the entry of GAIL in the HDPE & LLDPE market
Verticals, today North India has also witnessed a rapid and significant growth in the polymer
downstream processing Verticals. In a successful span of about a decades of establishing and

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marketing its grades under the brand names G-Lex and G-Lene, GAIL has alongside augmented its
name plate capacity of HDPE and LLDPE to 410,000 MTPA by adding another dedicated HDPE
downstream polymerisation unit of 100,000 MTPA.

The current per capita consumption of plastics in India is about 1.8 kg compared with the
world average of 17 kg. Demand and supply projections indicate a progressively increasing domestic
offtake. Being the only plant outside western India, it offers easy access to polymer consumers in
Northern India and parts of Central India.GAIL has set up a joint venture, Brahmaputra Cracker and
Polymer Limited BCPL, to construct a Greenfield petrochemical plant in Assam. GAIL also has
equity stake in OPAL petrochemical plant led by ONGC. GAIL is a co-promoter with 17% equity
stake in ONGC Petro-additions Limited (OPaL) which is implementing a green field petrochemical
complex of 1.1 MMTPA ethylene capacity at Dahej in the state of Gujarat.

Further, GAIL is working on augmentation of the installed capacity further by putting up new
plants of HDPE/LLDPE by 500 KTA at Pata, which is targeted to be operational by FY 2013–14.

City gas distribution

GAIL is the pioneer of city gas distribution in India. GAIL took many initiatives to introduce
PNG for households and CNG for the transport sector to address the rising pollution levels. Pilot
projects were launched in early 1990s in two metros Delhi and Mumbai through joint venture
companies Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL) leading to the start
of commercial operation of city gas projects. The results of these ventures are quite visible through
the improvement in air quality in these cities.

Based on the success of IGL and MGL, GAIL has further set up six more JVCs viz
Bhagyanagar Gas Limited, Andhra Pradesh; Avantika Gas Limited in Madhya Pradesh; Central U P
Gas Limited & Green Gas Limited in Uttar Pradesh; Maharashtra Natural Gas Limited in Pune
Maharashtra and Tripura Natural Gas Company Limited in Tripura for CGD projects in various cities.

However, Ministry of Petroleum & Natural Gas established the Petroleum and Natural Gas
Regulatory Board (PNGRB) with effect from 01.10.2007, under the Petroleum and Natural Gas
Regulatory Board Act 2006, to regulate the refining, processing, storage, transportation, distribution,
marketing and sale of petroleum, petroleum products and natural gas excluding production of crude
oil and natural gas. The Petroleum & Natural Gas Regulatory Board Act-2006 provides the legal

21
framework for the development of the natural gas pipelines and city or local gas distribution
networks. With the arrival of the PNGRB the implementation of PNG in various cities is being taken
up in a phased manner as and when the bids are called for by the regulator.

Exploration and production

GAIL is participating in 31 exploration blocks, in Basins such as Mahanadi, Mumbai,
Cambay, Assam-Arakan, Tripura Fold Belt, Gujarat Kutch, Krishna Godavari, Cauvery and Cauvery
Palar. GAIL has partnership in these blocks with various companies such as ONGC, OIL, GSPC,
Hardy Exploration & Production, Petrogas, JOGPL, Eni and Daewoo as Operators. Out of these 31
E&P blocks, 2 blocks are overseas (A-1 and A-3 blocks in Myanmar).The blocks are in various
stages of exploration, appraisal and development. Hydrocarbon discoveries are in place in 7 E&P
blocks in blocks where GAIL is participating.

The blocks with hydrocarbon discovery are: MN-OSN-2000/2, CB-ONN-2000/1, Block A-1
and A-3 Myanmar, CY-OS/2, AA-ONN-2002/1, CB-ONN-2003/2.Production of crude oil is in
progress from Cambay Onland block (CB-ONN-2000/1) @ 1250 barrels per day. Development
activities are in progress in 2 blocks in Burma (A-1 and A-3) and production of gas is expected from
May 2013. Declaration of Commerciality has been approved by the Government in Mahanadi
Offshore (MN-OSN-2000/2) block. In other blocks where hydrocarbon discoveries have been made,
appraisal is in progress.GAIL is an active member of multi-organisation team (MOT) set-up for
assessment of shale gas potential in Indian basins. The other representative in MOT are from DGH
(Directorate General of Hydrocarbons), ONGC and Oil India Limited (OIL).GAIL is also a member
of National Gas Hydrate Programme being coordinated by DGH and is actively involved in activities
related to gas hydrate exploration.

Subsidiaries
GAIL Gas Limited

GAIL Gas is a wholly owned subsidiary of GAIL. GAIL Gas has been selected for
implementation of City Gas Distribution (CGD) projects in four cities, namely, Kota, Dewas, Sonepat
and Meerut in the first round of bidding by the Petroleum & Natural Gas Regulatory Board

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(PNGRB). GAIL Gas supply CNG & PNG (industrial, commercial and household customers) in the
city of Dewas, Meerut, Sonepat & Kota and Taj Trapezium Zone. GAIL GAS is providing natural gas
to approximately 350 industrial consumers in TTZ area (Agra and Firozabad) in Uttar Pradesh India.
GAIL GAS has also started the CGD work in Bengaluru Karnataka recently.

Brahmaputra Cracker and Polymer Limited (BCPL)

GAIL has 70% equity share in BCPL, a subsidiary, with Oil India Limited (OIL), Numaligarh
Refinery Limited (NRL), Govt. of Assam, each having 10% equity share. Feedstock Supply
Agreements have been signed between BCPL and all the three suppliers, viz., Oil and Natural Gas
Corporation Limited, Oil India Limited and Numaligarh Refinery Limited. Technology licence
agreements have been signed for cracker, polyethylene and polypropylene units.

BCPL is setting up a 280,000 TPA polymer plant at an investment of ₹54.6 billion (US$810 million).
Financial commitment to the extent of ₹30 billion (US$450 million) has been made and project
execution is in progress.

GAIL Global (Singapore) Pvt Limited

GAIL has a wholly owned subsidiary, namely, GAIL Global (Singapore) Pvt Ltd., to manage
investments abroad. GAIL is looking for further business opportunities through this subsidiary
company. The official website for GAIL Global Singapore Pvt Ltd.

Joint Ventures
Avantika Gas Limited (AGL)
AGL is in operation in Indore and Ujjain and is supplying CNG to the transport sector in these
cities. AGL is supplying CNG to almost 9,000 vehicles in both the cities. AGL has plans to set up
five and two CNG stations in Gwalior and Ujjain respectively, and domestic supplies to households.
Six daughter stations are mechanically ready for CNG dispensing, awaiting for CCOE final approval.
MoPNG has authorized AGL for CGD in Indore, Gwalior and Ujjain. GAIL has 22.5% stake in the
Company along with HPCL as an equal partner.

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Bhagyanagar Gas Limited (BGL)
BGL is operating six CNG stations in Vijayawada and 4 CNG stations in Hyderabad and one
CNG station in Rajahmundry. BGL is supplying CNG in these three cities to almost 6,000 vehicles.
BGL is also operating two Auto LPG stations in Hyderabad and one Auto LPG station in Tirupati.
BGL has received authorization from MoPNG for City Gas Distribution (CGD) in Hyderabad and
Vijayawada. GAIL has a 22.5% stake in the company along with HPCL as an equal partner.

Central U.P. Gas Limited (CUGL)

CUGL is operating 15 CNG stations in Kanpur, Unnao and two CNG stations in Bareily. CUGL is
supplying CNG to almost 45,000 vehicles in the two cities. CUGL commenced its domestic supply of
PNG with connexions to 15000 households in Kanpur and Bareilly. CUGL has received authorisation
from MoPNG for CGD in Kanpur, Unnao, Bareilly & Jhansi. GAIL has 25% stake in the Company
along with BPCL as an equal partner. CUGL has connected 200 commercial and industrial units in
both the cities.

Green Gas Limited (GGL)

GGL is operating six CNG stations in Lucknow and three CNG stations in Agra. GGL is supplying
CNG in the two cities. GGL has tied up for commencement of domestic supply of PNG with
connexions to households, commercial and industrial establishments. MoPNG has authorised GGL
for CGD in Lucknow and Agra. GAIL has a 22.5% stake in the company along with IOCL as an
equal partner.

Indraprastha Gas Limited (IGL)

IGL is the largest CGD entity in terms of CNG sales and the number of vehicles supplied by CNG in
India. IGL has received authorisation from MoPNG for CGD in Delhi and its suburbs viz. NOIDA
(Gautam Budh Nagar), Greater NOIDA, Gurgaon, Faridabad and Ghaziabad. IGL is supplying piped
gas to around 200,000 domestic, 340 commercial, 20 small industrial consumers and CNG to over
300,000 vehicles through around 200 CNG stations in NCR. GAIL has a 22.5% stake in the company
along with BPCL as an equal partner.

Mahanagar Gas Limited (MGL)

MGL is a joint venture of GAIL and British Gas. MGL has set up 140 CNG stations catering to over
200,000 vehicles spread over Mumbai, Thane, Mira-Bhayandar and Navi-Mumbai areas besides
supplying PNG to over 450,000 domestic customers, more than 1,000 small industrial and

24
commercial consumers. It has received authorisation from MoPNG for CGD in Mumbai, District
Thane including Navi Mumbai and Mira Bhayander. GAIL has a 49.75% stake in the company along
with British Gas as an equal partner.

Maharashtra Natural Gas Limited (MNGL)

MNGL is a joint venture of GAIL and Bharat Petroleum Corporation Limited (BPCL) for
implementation of City Gas Projects in and around Pune city. MNGL has received authorisation from
MoPNG for CGD in Pune including Pimpri, Chinchwad, Talegaon, Hinjewadi and Chakan areas. It
has started 10 stations supplying CNG to nearly 5,000 vehicles. GAIL has a 22.5% stake in the
company along with BPCL as an equal partner.

ONGC Petro-additions Limited (OPaL)

GAIL is in the process of acquiring equity stake in ONGC Petro- additions Limited (OPaL), which is
a joint venture of GAIL with Oil and Natural Gas Corporation Ltd. and Gujarat State Petroleum
Corporation Ltd., for setting up Petrochemical Project at Dahej in Gujarat. OPaL is setting up a green
field petrochemical complex of 1.1 MMTPA ethylene capacity (dual feed cracker) in Dahej, Gujarat.

Four main players dominate the petrochemical sector, namely, Reliance Industries Ltd. (RIL),
Indian oil (IOCL), Gas Authority of India Ltd. (GAIL), and Haldia Petrochemicals Ltd. A New
Chapter to this Industry has been added by the evolution of ONGC Petro additions Ltd. (OPaL) on 15
November 2006 which is a joint venture Company of Oil and Natural Gas Corporation Limited
(ONGC), Gujarat State Petroleum Corporation Ltd. (GSPCL) and GAIL India Ltd. is a grass root
Mega Petrochemical complex of Global scale based on dual feed i.e., C2/C3/C4 & Naphtha at Dahej
special Economic Zone (SEZ), Gujarat. The complex consists of Dual Feed Ethylene cracker (with
C2/ C3/ C4 and Naphtha feed ) of 1100KTPA capacity to produce Ethylene and Propylene as
Petrochemical Feedstock to downstream units of Polyethylene (LLDPE, HDPE) and
Polypropylene(PP) and associated unit i.e., PyGas Hydrotreating, Benzene and Butadiene extraction
plants to produce other products (Pygas, 1,3- Butadiene and Benzene). Utility and offsite facilities to
cater to complex requirement is built within the Complex which includes ECTS and CPP. The grass
root complex is located at a distance of about 10 km to the ONGC's C2+ Extraction Plant within
Special Economic zone (SEZ) at Dahej, Gulf of Khambhat.

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 Feed system: C2, C3 & C4 feed is sourced from existing C2+ recovery plant of ONGC in
Dahej (at a distance of 10 km) through pipeline. Mixed Naphtha (LAN & ARN) in definite
proportionate from Hazira is sourced to Petrochemical complex through a separate pipeline.Saleable
products: The products shall be dispatched through various modes, like bagging, truck, rail, tanker
loading and through pipelines.

Petronet LNG Limited (PLL)

PLL has been formed for setting up of LNG import and regasification facilities. PLL has a long
term LNG supply contract with RasGas, Qatar, for import of 7.5 MMTPA of LNG. PLL Dahej
terminal in Gujarat has been expanded to 10 MMTPA capacity. PLL has successfully implemented a
pilot project for supplying LNG through cryogenic road tankers. PLL is also coming up with a LNG
terminal at Kochi, Kerala, with an initial capacity of 2.5 MMTPA, expandable up to 5 MMTPA and it
is scheduled to be operational by end of 2011. GAIL has a 12.5% equity stake in PLL, along with
BPCL, ONGC and IOCL as equal partners.

Ratnagiri Gas and Power Pvt. Ltd. (RGPPL)

RGPPL is a joint venture company between GAIL, NTPC, Financial Institutions and MSEB. The
capacity of the Ratnagiri Gas & Power Station is 2,150 MW, which is the largest gas based power
generation facility in the country and is producing 1,850 MW of power. RGPPL is in the process of
commissioning an LNG import terminal of 5 MMTPA capacity. GAIL has 32.88% stake in the
company along with NTPC as an equal partner.

Tripura Natural Gas Company Limited (TNGCL)

TNGCL is supplying gas to around 7,500 domestic, 170 commercial and industrial consumers and
has set up one CNG station in Agartala, which is catering to more than 1,400 vehicles. TNGCL has
received authorisation from MoPNG for CGD in Agartala. GAIL has 29% stake in the company.

GAIL China Gas Global Energy Holdings Limited

The joint venture company has been formed with an objective to pursue gas sector opportunities,
mainly in China. GAIL has 50% equity interest in the company along with China Gas as equal

26
partner. The joint venture company is in the process of identifying projects in gas and other related
areas in China.

Global presence

As a strategy of going global and further expanding global footprint, GAIL has formed a
wholly owned subsidiary company, GAIL Global (Singapore) Pte Ltd. in Singapore for pursuing
overseas business opportunities including LNG & petrochemical trading. GAIL has also established a
wholly owned subsidiary, GAIL Global (USA) Inc. in Texas, USA. The US subsidiary has acquired
20% working interest in an unincorporated joint venture with Carrizo Oil & Gas Inc in the Eagle Ford
shale acreage in the state of Texas. In addition to having two wholly owned subsidiaries in Singapore
and the US, GAIL has a representative office in Cairo, Egypt to pursue business opportunities in
Africa and Middle East.

GAIL is also an equity partner in two retail gas companies in Egypt, namely Fayum Gas Company
(FGC) and National Gas Company (Natgas). Besides, GAIL is an equity partner in a retail gas
company involved in city gas and CNG business in China – China Gas Holdings Limited (China
Gas). Further, GAIL and China Gas have formed an equally owned joint venture company – GAIL
China Gas Global Energy Holdings Limited for pursuing gas sector opportunities primarily in China.

GAIL is a part of consortium in two offshore E&P blocks in Myanmar and also holds participating
interest in the joint venture company – South East Asia Gas Pipeline Company Limited incorporated
for transportation of gas to be produced from two blocks in Burma (Myanmar) to China.

MILESTONES

1984 GAIL (India) Ltd was formed

1987 HVJ (Hazira – Vijaipur – Jagdishpur) Natural Gas pipeline

commissioned

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1989 First Year of profit registered

1990 LPG Plant Phase – I at Vijaipur commissioned

1992 Gas Marketing functions transferred to GAIL

1993 Maiden dividend of Rs. 20 Crores paid to its shareholders

1994 First JV Mahanagar Gas Limited formed with British Gas incorporated to implement
Mumbai City Gas Distribution project

1995 Propane recovery plants at Vijaipur commissioned

1996 GAIL listed in NSE, BSE and DSE

1997 Government of India granted Navratna status to GAIL

1998 Indraprastha Gas Limited (IGL) incorporated for supply of gas to household sector, transport
sector & commercial consumers in Delhi.

1999 Uttar Pradesh Petrochemical Complex (UPPC) at Pata commissioned with a design capacity
of 3 lacs TPA of Ethylene to produce 2. 60 lacs TPA of HDPE & LLDPE.

2000 LPG plant at Pata with a design capacity of 2.58 lacs TPA of LPG commissioned

2001 Jamnagar-Loni LPG Pipeline Project, world’s longest and India's first Cross-Country LPG
1269 km long pipeline commissioned

2002 GAIL picks up 12% equity stake in GSEGs 156MW power project in Gujarat

2003 GAIL has an initial success in the form of significant gas find in the block A-1 in Myanmar
and discovery of Oil and Gas in the Cambay Block

2003 Bhagyanagar Gas Limited, a joint venture of GAIL and HPCL, incorporated in August 2003, in
the field of distribution and marketing of Auto LPG, CNG for vehicles and retailing of natural
gas in cities of Andhra Pradesh.

2003 Vizag- Secunderabad LPG pipeline, the 580 km pipeline with a maximum throughput of 1.16
MMPTPA completed

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2003 GAIL successfully secures participation in 2 retail gas companies in Egypt, Fayum Gas
Company and Shell CNG.

2004 A wholly-owned subsidiary company GAIL Global (Singapore) Pte Ltd formed in Singapore

2004 Platts declares GAIL as the first among Global Gas Utilities based on Return on Invested
Capital (ROIC) in its worldwide survey of Top 250 Energy Companies in 2004.

2004 Tripura Natural Gas Co. Ltd., a Joint Venture for city gas project in Tripura and UP Central
Gas Ltd., a Joint Venture for city gas project with BPCL in Kanpur, incorporated

2004 GAIL acquired 15% equity stake in NatGas, Egypt

2005 Inauguration of the National Gas Management Centre (NGMC) of GAIL at NOIDA

2006 GAIL brings India’s first spot LNG cargo at Dahej

2006 GAIL consortium wins 3 CBM blocks in III round of bidding

2007 MoP&NG authorization for 5 new major pipelines received

2007 Brahmaputra Cracker and Polymer Limited, a Joint Venture Company led by GAIL, formed
for implementing Assam Gas Cracker Project

2007 GAIL forms a Joint Venture Company (JVC) with China Gas Global Energy Holdings
Limited.

2007 Expansion of Petrochemical Plant at Pata for increasing capacity from 310,000 TPA
LLDPE/HDPE to 410,000 TPA completed

2007 188 Km Dahej – Panvel - Dabhol trunk pipeline having a capacity of 8.4 MMSCMD
commissioned

2007 Received authorization from MoP&NG for five new pipeline projects and two augmentation
lines

2008 Dahej - Panvel- Dabhol pipeline commissioned

2008 GAIL Gas Limited incorporated for CGD

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2008 GAIL Gas limited wins the rights for rolling out city gas distribution projects in Meerut,
Sonepat, Dewas and Kota.

2008 A special commemorative postage stamp released on the occasion of GAIL’s silver jubilee

2008 A wholly owned subsidiary, GAIL Gas Limited, incorporated for City Gas Distribution
business

2009 GAIL gets SCOPE Meritorious Award for Corporate Governance for the year 2007-08.

2010 GAIL ranked no.1 company among gas utilities in Asia in the Platts Global Ranking.

2010 GAIL conferred “MoU Excellence Award” for the year 2008-09 by Prime Minister of India

2010 Petroleum Federation of India (PETROFED) Awards 2010 for Oil & gas Marketing –
Company of the year

2010 Entered in Wind Energy generation by commissioning Wind Power Project of 4.5 MW in
Gujarat

2010 Commissioning of Vijaipur- Dadri Pipeline (498 km) Sultanpur –Neemrana Pipeline ( 175
km) and Focus Energy Pipeline (88 km)

2011 AIMA Managing India Awards 2011 for Outstanding PSU of the year

2011 GAIL’s growth strategy for the period 2011-20 approved by the Board

2011 Acquired 20% stake in Houston-based Carrizo Oil and Gas’s Eagle Ford shale acreage, first
instance of a PSU acquiring shale assets in USA

2011 A wholly-owned subsidiary company GAIL Global (USA) Inc. formed in Houston, USA

2011 Office of GAIL Global (Singapore) Pte Ltd opened in Singapore

2011 GAIL became first Asian company to sign Henry Hub linked 20 year deal with Cheniere
Energy for importing 3.5 MMTPA LNG from US

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2011 GAIL won rights to lay a 1550-km, $1bn natural gas pipeline from Surat in Gujarat to Paradip
in Orissa, connecting west to east coast

2012 GAIL conferred MoU Excellence Award for the year 2009-10 for Best Performing CPSE in
the Petroleum Sector consecutively for second year

2012 GAIL has been ranked World’s No. 1 in Downstream Operations in Platts Global Energy
Awards

2012 GAIL signed a 20-year agreement with Sabine Pass Liquefaction LLC, a unit of Cheniere
Energy Partners, for supply of 3.5 MMPTA/year of LNG

2012 Commissioned 100 MW Wind Energy Generation project in various state of India

2012 GAIL become only company from Oil and Gas sector to be included in BSE Greenex, India's
first energy efficient index

2012 GSPA signed between GAIL and TurkrnenGaz for Turkmenistan-Afghanistan-Pakistan-India

(TAPI) Gas Pipeline Project

2013 Maharatna Status accorded to GAIL by Government of India

2013 Entered in Solar Power generation by commissioning 5 MW Solar Power Plant under
Jawaharlal Nehru National Solar Mission

2013 Successful commissioning of Dabhol LNG Terminal at Ratnagiri, Maharashtra

2013 Liquefaction Capacity booking in Cove Point LNG Terminal in USA

2014 Gas supply secured in USA for export of 2.3 MMTPA LNG to India from Dominion Cove
Point LNG Liquefaction Terminal

2014 TAPI pipeline consortium called TAPI Pipeline Company Limited (TPCL) incorporated in
‘Isle of Man’, a British Crown dependency located in the Irish Sea.

2014 MoU with RCF, CIL & FCIL executed for implementing Coal Gasification project at Talcher
comprising of JV-I (coal gasification) and JV-II (Urea & Ammonia, Ammonium Nitrate, captive
power plant and integrated utility).

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2015 Construction work of first phase of 2,050 km Jagdishpur – Haldia
Natural Gas pipeline inaugurated by Hon’ble Prime Minister Shri Narendra Modi

2015 MoU signed with GDF SUEZ, Shell and Andhra Pradesh Gas Distribution Corporation for
developing floating LNG terminal in Kakinada, Andhra Pradesh

AWARDS

1. GAIL adjudged ‘Best Performing Company’ (Maharatna category) at the India Today PSU
Awards 2014
2. GAIL declared the top Indian company in the ‘Gas-Processing, Distribution and Marketing’
Sector for the Dun & Bradstreet Corporate Awards 2014
3. Dabhol-Bengaluru Pipeline Project awarded as Premier Project in large construction category at
Platts Global Energy Awards 2013
4. GAIL C&MD, Shri B C Tripathi, conferred the prestigious ‘Best LNG Executive Global
Award’ for 2013 at CWC’s 14th World LNG Summit being held at Paris
5. GAIL receives Oil & Gas Pipeline Transportation Company of the year, besides Project
Management (Rs 500 crore to Rs 2,000 crore category) of the year and the Environmental
Sustainability of the year category in the Petrofed Awards 2012
6. Platts Global Energy Award, 2011 for ‘World’s No. 1 Company in Downstream Operations
7. Prime Ministers’ Excellence Award for the year 2009-10 for Best Performing CPSE in the
Petroleum Sector consecutively for second year
8. 11th ICSI National Award for Excellence in Corporate Governance, 2011
9. Corporate Governance Award 2012 by Indian Chamber of Commerce
10. Commendation Certificate from SCOPE for Corporate Governance in 2010-11
11. Commendation Certificate from PetroFed for being leading transporter of Oil & Gas in 2011
12. AIMA Managing India Awards 2011 for Outstanding PSU of the Year.
13. Kaizen Warrior Award for Most Efficient Navratna PSU, 2011
14. No.1 gas utility company in Asia and No.2 gas utility company globally, ‘PLATTS Top 250’,
2010.
15. Petroleum Federation of India (PETROFED) Awards 2010 for Oil & Gas Marketing Company
of the Year.
16. ICSI National Award for Excellence in Corporate Governance, 2010

32
17. Prime Minister’s “MoU Excellence Award” for the year 2008-09
18. Petroleum Federation of India (PETROFED) Awards 2008 for Oil & Gas Marketing Company
of the Year.

Distribution of reserves by state/region

The following table shows the estimated crude petroleum and natural gas reserves in India by
state/region as on 31 March 2016

Region Crude oil reserves Share of Natural gas Share of gas

(in million metric oil (%) reserves (%)
tonnes) (in billion cubic
metres)
Arunachal 1.57 0.25 0.76 0.06
Pradesh
Andhra 10.90 1.75 42.03 3.42
Pradesh
Assam 160.79 25.89 153.76 12.53
Coal Bed 0 0 126.49 10.31
Methane
Eastern 36.39 5.86 451.46 36.79
Offshore[a]
Gujarat 121.16 19.51 63.06 5.14
Nagaland 2.38 0.38 0.09 0.01
Rajasthan 31.72 5.11 35.66 2.91
Tamil Nadu 8.99 1.45 31.68 2.58
Tripura 0.07 0.01 28.28 2.30
Western 247.13 39.79 293.96 23.95
Offshore
Total 621.10 100 1227.23 100

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Production
India produced 36.95 MTs of crude petroleum in 2015-16. Production of crude petroleum in
India had a CAGR of 0.84% between 2006-07 and 2015-16. The CAGR for natural gas production
during the same period was 0.16%.

India produced 231.92 MTs of petroleum products in 2015-16, recording a growth of 4.88%
over the previous year. Among petroleum products, high speed diesel oil accounted for 42.51%,
followed by Motor Gasoline (15.23%).

India produced 25.46 billion cubic meters of natural gas in 2015-16, a decline of 5.41% from the
previous fiscal.

Petroleum Refining

As on 31 March 2016, there were 23 crude oil refineries in India, of which 18 were state-
owned, 3 were privately owned and 2 were joint ventures. The total oil refining capacity in India
stood at 230 MMT, rising from 215 MT the previous year. Refineries in India processed 232.865
MMT of oil in 2015-16 achieving a capacity utilization of 101.2%. With a total refining capacity of
69.2 MMTY, the state-owned Indian Oil Corporation was the largest refiner in the country. Indian
Oil's refineries processed 58.007 MMT of crude oil in 2015-16.

Many refineries are using the lower end residual oil with higher sulphur content to produce
more lighter oils (petrol, diesel, etc) by installing petroleum coker units. This process generates a
solid fuel called Pet coke which has higher calorific value and sulphur. As developed countries have
banned use of high sulphur pet coke and residual oils, these fuels further are converted in to synthetic
natural gas and methanol in Methanation plants to avoid their disposal problem. Nearly 38% of
residual fuel oils are consumed in the shipping sector. The International Convention for Prevention of
Pollution from Ships (MARPOL), adopted by the IMO, has mandated that marine vessels shall not
consume residual fuel oils (bunker fuel, etc) with a sulphur content greater than 0.1% from the year
2020. Thus complete use of residual oil or pet coke in gasification unit would be part of petroleum
refining complexes/plants in future to avoid waste products disposal.

Consumption
The estimated total consumption of crude oil in India rose from 146.55 MMT in 2006-07 to
232.87 MMT in 2015-16 with a CAGR of 4.74%. High speed diesel oil accounted for 40.42% of total

34
consumption of all types of petroleum products in 2015-16, followed by Petrol (11.83%), LPG
(10.63%), Petroleum Coke (10.45%) and Naphtha (7.19%). The two largest consumers of natural gas
are the fertilizer industry (33.72%) and power generation (22.76%). Use of natural gas as a domestic
fuel accounted for 11.42% of total consumption.

India is highly dependent on import of crude oil. Net imports of crude oil rose from 111.50
MTs during 2006-07 to 202.85 MTs during 2015-16. Although more than 70% of its crude oil
requirements and part of the petroleum product requirement is met from imports, India has developed
sufficient processing capacity over the years to produce different petroleum products. As result, India
is now a net exporter of petroleum products. The export of petroleum products increased from 33.62
MT in 2006-07 to 60.53 MT during 2015-16.

Electricity Generation
Gas is an important source for electricity generation in India. As on 31 October 2016, the installed
capacity of gas-based power plants in India was 25,057.13 MW, accounting for 8.2% of the total
installed capacity. Diesel is a minor source for electricity generation in India. The total installed
capacity of diesel-based power plants in India is 918.89 MW accounting for a mere 0.3% of total
installed capacity.

India's electricity sector consumed 20.97% of the natural gas produced in the country in 2014-15.

ANALYSIS OF BUSINESS SEGMENTS:

1. Natural Gas Marketing:

Natural Gas continues to be the core business of GAIL. It holds 50% of the market shares in

India. Major supplies include fuel to power plants and feedstock for gas based fertilizer plant.

2. Natural Gas Transmission:

GAIL is currently operates a network of 8644 KM of natural gas high pressure trunk pipeline with a
capacity of approximately 170MMSCMD of natural gas in the country .Company’s share of gas
transmission business is around 74% India with in presence in 11 states.

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3. LPG Transmission:
GAIL is the only company in India which owns and operates pipeline for exclusive LPG transmission
for third party usage. Total LPG pipeline length is more than 1900 KM which is one of the largest in
the world.

4. Petrochemicals:
GAIL has commissioned petrochemical plant in Pata in UP with initial capacity of 280 KTA of PE
which is later expanded to 440 KTA. Within no time, it has captured market share of 21% in India
competing with biggies like Reliance through its quality LLDPE/HDPE products. It has also majority
shares in BCPL in Assam which is setting up a 280 KTA ges and naphtha based petrochemical plant
and substantial stakes in OPAL, Gujarat whose capacity is 1 MTA.

5. LPG & Other Liquid Hydrocarbons:

GAIL has 7 LPG plants in India .Main Hydrocarbons are Propane, Naphtha and Pentane.

36
6. City Gas Distribution:
GAIL is a pioneer in City Gas Distribution (CGD) business in India, with Indraprastha Gas Limited
(IGL) in Delhi and Mahanagar Gas Limited (MGL) in Mumbai being its biggest success stories.
Beside IGL and MGL, GAIL has set up several JVs for CGD to supply gas to households, transport
sector & commercial consumers in various cities including Hyderabad , Agartala, Kanpur, Indore ,
Vadodara, Lucknow, Agra and Pune. In 2008,GAIL incorporated a wholly owned subsidiary, GAIL
Gas Ltd (GGL) to exclusively focus on city gas distribution business. It has more than 400 CNG
Retail Outlets in 7 States and PNG supply to more than 8 lakhs households in 8 States.

7. GAIL TEL:
Leveraging on its pipeline network, GAIL has built a strong Optic Fibre Cable (OFC) network of
approximately 13,000 km for its own internal use and leasing of bandwidth as a carriers' carrier.

8. Power:

As a part of its initiative towards reducing carbon footprint and creating a path of sustainable growth,
GAIL is building a portfolio of renewable businesses. The company has successfully commissioned
wind energy power projects of 118 MW across states of Gujarat, Tamil Nadu and Karnataka.

9. Exploration and Production (E&P):

Keeping in mind the requirement of growth and consolidation as well as opportunities arising out of
New Exploration Licensing Policy (NELP) of Government of India, the company has moved
into upstream of gas value chain i.e. Exploration & Production and currently has stakes in 31 E&P
blocks including 2 blocks overseas (in Myanmar).

10. Global Presence:

As a strategy of going global and further expanding global footprint, GAIL has formed a wholly-
owned subsidiary Company , GAIL Global (Singapore) Pte Ltd. in Singapore, GAIL Global (USA)

37
Inc. in Texas, USA .It has also equity stakes in Fayum Gas Company (FGC) and National Gas
Company (Natgas) in Egypt and GAIL China Gas Global Energy Holdings Limited in China.

Organizational Structure and Corporate Governance:

Corporate governance is "the system by which companies are directed and controlled”. It
involves regulatory and market mechanisms, and the roles and relationships between a company’s
management, its board, its shareholders and other stakeholders, and the goals for which the
corporation is governed. In contemporary business corporations, the main external stakeholder groups
are shareholders, debt holders, trade creditors, suppliers, customers and communities affected by the
corporation's activities. Internal stakeholders are the board of directors, executives, and other
employees. An important theme of corporate governance is the nature and extent of accountability of
people in the business.

GAIL has taken a number of initiatives in furtherance of goals for Corporate Governance like
e-business, Bill Watch System, File Movement System, Customer Grievance Re Dressal System,
Online Recruitment-Performance Management System, Online Vigilance Complaint Registration
System-Budgeting System-Document Management System, Gas management System. Several MIS
are in Place for efficient and effective decision making. Audit Committee oversees the internal
control systems, their adequacy to bring transparency in Decision Making.

GAIL gets SCOPE Meritorious Award for Corporate Governance for the year 2007-08. GAIL (India)
Limited was conferred a Certificate of Recognition for Excellence in Corporate Governance in the

38
10th ICSI National Award for Excellence in Corporate Governance 2010 as one of the Top
Companies adopting Excellent Practices in Corporate Governance.

Tall Structure:

Like all traditional, large organisation, as GAIL grows, number of management level
increases, the structure grows taller. The pros of tall structures lie in clarity and managerial control.
The narrow span of control allows for close supervision of employees. Tall structures provide a clear,
distinct layer with obvious lines of responsibility and control and a clear promotion structure. GAIL
structure at the top is CMD, followed by board of Directors, Executive Directors, General Managers,
Deputy General Managers, Chief Managers, Senior Managers, Managers, Deputy Manager and
Senior Engineers, each having own responsibility and roles.

The clear roles and responsibilities also enable GAIL to delegate powers to different level.
Greater delegation of Power (DOP) to executives frees up senior management for devoting their time
to bigger and strategic aspects which are important to organisational growth. This enables board
members to concentrate more on macro and strategic issues which are vital for the growth of existing
and new businesses. DoP not facilitates quick decision making but also provide operational flexibility
thereby reducing the procedural delays and speeding up organisation responsiveness.

39
Human Capital:
GAIL is known for its efficient and engaged work force of 3500+ employees.

Value added per employees gives an account of efforts of company’s employees to make the best and
most productive resources available to them.

ISO 9001 certified GAIL Training Institute (GTI) at Noida and Jaipur have been constantly
working towards development of Human Capital of the organisation. During FY 2010-11, approx
14,000 man days training have been completed by GTI. It also received the prestigious National
Award for Innovative Training Practices from Indian Society for Training and Development in
2011.GAIL also organised programs like Management Development Programs (MDPs) in institute
like NITIE for development of pipeline of leaders.Employee engagement survey was carried out
during FY 2010-11 to gauge the engagement level of the employees and valuable feedback was
obtained from the employees on People Practices. GAIL was placed in the High
Performance/Hewitt’s Best Employer Range.

GAIL has been complying with Reservation Policy in terms of Presidential Directives and other
guidelines in respect to providing reservation in matters of employment to candidates belonging to
SCs, STs, OBCs and PWDs in Direct Recruitment.

40
SWOT ANALYSIS:

Strength:

Gas Transmission 78%

Gas Marketing 50%

Strong Hold in Gas Business, top company in this sector

Strong Hold on all existing customers as well as new customers.

Weakness:

Delay in decision making due to Public Sector Structure.

Opportunity:

GAIL is making its presence in Polymer Sector through Pata Plant and its subsidiary BCPL and
OPAL

Additional 6000 KM pipeline in the coming years to connect South and East India

Threats:

Limited Source of Gas in India and drying up at a faster rate.

Competition from ONGC and RIL is increasing in Petrochemicals due to competitors’ larger capacity
production.

41
New Customers find it very difficult to deal with the requirement of GAIL.

In Global front, biggies in USA and Asia are playing a barrier for GAIL.

CORPORATE SOCIAL RESPOSIBILITY

In terms of the guidelines issued by the Department of Public Enterprises, GAIL has allocated
an annual budget of 2% of the previous year's profit after tax for CSR activities, which is effectively
used for carefully chosen programmes. Socially useful programmes have been undertaken in GAIL
since its inception in and around the areas adjoining its major work centres under the SCP/TSP Plan.
But over the years, the scope of the CSR activities, the nature of programmes undertaken and the
systems adopted for the implementation of these programmes have been streamlined and
strengthened and the work under SCP/TSP came under the wider scope of CSR. Today, CSR &
sustainability development is accorded high priority in the organisational ethos and attempted to be
interwoven in all the business activities and the projects that are being undertaken by the company.

During the year 2010–11, the company has taken up programmes of a value of
approximately ₹575 million (US$8.9 million) for implementation under the seven thrust areas, which
include Community Development, Infrastructure, Healthcare/Medical, Skill
Development/Empowerment, Educational Aids, Environment Protection, Drinking Water/Sanitation.

GAIL (India) Ltd. extended its support for the reconstruction and renovation of numerous
public utilities/buildings which improved living standards not only for a person or family but for the
whole of the villages where this project was implemented. For the sustainable development of the
whole community GAIL is also supporting integrated livelihood programmes in villages especially
for small and marginal farmers. This would be considered as a drop in the vast ocean but GAIL along
with other Oil PSUs is contributing towards provision of LPG connections to BPL families under
Rajiv Gandhi Gramin LPG Vitrak Yojana.

This collaborative combined effort of the Oil PSUs would be able to generate a huge wave in
the ocean in UP region. GAIL is providing vehicles for distribution of a mid-day meal for
underprivileged children of government schools so as to encourage the young girls and boys to
educate themselves for their better and secured lives. GAIL in the minuscule of its efforts have tried

42
to touch every aspect of life by providing Night shelters and blankets to villagers, adoption of
destitute tribal children of the orphanage in the tribal area, generating AIDS awareness and a
behaviour change communication programme for truckers of national highways and providing school
bus for physically challenged students. In just two years, more than 314,000 families have benefited
from the programmes under Community Development.

COMPANY PROFORMA

GAIL (India) Limited

Type State-owned enterprise

public company

Industry Energy, petrochemicals

Founded August, 1984

Headquarters Bhikaiji Cama Place, New

Delhi India

Key people Shri B. C. Tripathi (Chairman

& MD)

Products Natural gas, petrochemical, liquid

hydrocarbons, Liquefied
petroleum gas transmission, city
gas distribution, E&P,
telecommunication, electricity
generation

Revenue ₹516.14 billion (US$8.0 billion)

(FY2015–16)

Number of 4200 (2017)

Employees

Subsidiaries GAIL Gas, BCPL and GAIL

Global (Singapore) Pte Ltd.

43
 NEED FOR THE STUDY

Employers have a need to retain employees because of great costs associated with hiring and
retraining new employees. The best way to retain employees is providing them with job satisfaction
and opportunities for advancement in their careers.

 Employees, who are satisfied and happy in their jobs are more dedicated in doing the job and
take care of the customers who sustain the operations of the organisation.
 Job satisfaction is the key element of employee Retention.
 Pay, benefits, communication, motivation, justice and leisure time all play a part whether the
employees are satisfied with their jobs.
 The study shows that employees who are satisfied with their jobs are more productive, creative
and more likely to be retained by the company.

44
OBJECTIVES OF THE STUDY
 To study about the employee retention in GAIL, Rajahmundry.
 To understand the satisfaction level of the employees in the company.
 To study the benefits provided to the employees by the company.
 To ascertain the causes of the employee exiting the company.
 To offer suggestions to retain employees of GAIL in Rajahmundry.

45
 IMPORTANCE OF THE STUDY

Employee Retention refers to the techniques employed by the management to help the
employees stay with the organization for a longer period of time. Employee retention strategies go a
long way in motivating the employees so that they stick to the organization for the maximum time
and contribute effectively. Sincere efforts must be taken to ensure growth and learning for the
employees in their current assignments and for them to enjoy their work.

Reasons for retaining a valuable employee are essential for an organization:

 Hiring is not an easy process:

The HR Professional shortlists few individuals from a large pool of talent, conducts preliminary
interviews and eventually forwards it to the respective line managers who further grill them to judge
whether they are fit for the organization or not. Recruiting the right candidate is a time consuming
process.

 An organization invests time and money in grooming an individual and makes him ready to
work and understand the corporate culture:

A new joiner is completely raw and the management really has to work hard to train him for his
overall development. It is a complete wastage of time and money when an individual leaves an
organization all of a sudden.

 When an individual resigns from his present organization, it is more likely that he would join
the competitors:

In such cases, employees tend to take all the strategies, policies from the current organization to
the new one. Individuals take all the important data, information and statistics to their new
organization and in some cases even leak the secrets of the previous organization. To avoid such
cases, it is essential that the new joinee is made to sign a document which stops him from passing on
any information even if he leaves the organization. Strict policy should be made which prevents the
employees to join the competitors. This is an effective way to retain the employees.

46
 The employees working for a longer period of time are more familiar with the company’s
policies, guidelines and thus they adjust better:

They perform better than individuals who change jobs frequently. Employees who spend a
considerable time in an organization know the organization in and out and thus are in a position to
contribute effectively.

 Every individual needs time to adjust with others:

One needs time to know his team members well, be friendly with them and eventually trust them.
Organizations are always benefited when the employees are compatible with each other and discuss
things among themselves to come out with something beneficial for all. When a new individual
replaces an existing employee, adjustment problems crop up. Individuals find it really difficult to
establish a comfort level with the other person

 Sticking to an organization for a longer span are more loyal towards the management and the
organization:

They enjoy all kinds of benefits from the organization and as a result are more attached to it.
They hardly badmouth their organization and always think in favour of the management. For them
the organization comes first and all other things later.

 It is essential for the organization to retain the valuable employees showing potential:

Every organization needs hardworking and talented employees who can really come out with
something creative and different. No organization can survive if all the top performers quit. It is
essential for the organization to retain those employees who really work hard and are indispensable
for the system

47
 SCOPE OF THE STUDY

To know about the functions of the organisation and how they are functioning, how the policies are
made and implemented and conveyed, employees working in several departments of GAIL were
contacted, data obtained and analyzed.

These departments are

• Human resource development department

• Training and development department
• Petrochemical department
• Civil department
• Research and development department
• Security department

48
 RESEARCH METHODOLOGY

Introduction:

Research is the process of systematic and in-depth study or search for any particular topic,
subject or area of investigation, backed by collection, compilation, presentation and interpretation of
relevant details or data. Research methodology is a way to systematically solve the research problem.
It may be understood as a science of studying how research is done scientifically.

Data collection:

Data collection is one of the most important aspects of research. For the success of any
project accurate data is very important and necessary. The information collected through research
methodology must be accurate and relevant.

Methods of data collection:

 Primary Data
 Secondary Data

Primary Data:

Data collected by a researcher is known as primary data. It is collected by a person for his
own use obtained from findings. This is considered as firsthand information. This is that data which is
collected by us to meet our own specific purpose. The data is collected by the means of questionnaire
filled in by the employees at different posts of Nagpur area office. This method of data collection is
very popular particularly in big organizations.

Secondary Data:

Secondary data means data that are already available i.e., they refer to data which has already
been collected and analyzed by someone else. This type of data information can also be used by the
researcher for his use as second hand information sources through which secondary data can be
collected. Secondary data may either be published data or unpublished data.

The research approach:

49
 Survey Method

The research instrument:

Questionnaire

The Respondents:

The Employees of the organization.

Sampling:

It is the process of selecting representative subset of a total population for obtaining data for the study
of the whole population the subset is known as sample.

The sample size is selected for the study 80 employees.

Period of study:

The time period of the study is 45 days.

Sample Area:

GAIL, Rajahmundry

50
 OIL AND NATURAL GAS IN INDIA

The Oil and Gas Industry in India dates back to 1889 when the first oil deposits in the country
were discovered near the town of Digboi in the state of Assam. The natural gas industry in India
began in the 1960s with the discovery of gas fields in Assam and Gujarat. As on 31 March 2015,
India had estimated crude oil reserves of 763.48 million tonnes and natural gas reserves of 1488.49
billion cubic meters (BCM).

India was the fourth top net crude oil (including crude oil products) importer of 163 Mt in
2015.

History

Most of the natural gas that is brought out from under the ground is millions and millions of
years old. However, it was not until recently that methods for obtaining this gas, bringing it to the
surface, and putting it to use were developed. Before there was an understanding of what natural gas
was, it posed a mystery to man. Sometimes, lightning strikes would ignite natural gas that was
escaping from under the earth’s crust. This would create a fire coming from the earth, burning the
natural gas as it seeped out from underground. These fires puzzled most early civilizations, and were
the root of myth and superstition. One of the most famous of these flames was found in ancient
Greece, on Mount Parnassus around 1000 B.C. A goat herdsman came across what looked like a
‘burning spring’, a flame rising from a fissure in the rock. The Greeks, believing it to be of divine
origin, built a temple on the flame. This temple housed a priestess who was known as the Oracle of
Delphi, giving out prophecies she claimed were inspired by the flame.

These types of springs became prominent in the religions of India, Greece, and Persia. Unable
to explain where these fires came from, they were often regarded as divine, or supernatural. It wasn’t
until about 500 B.C. that the Chinese discovered the potential to use these fires to their advantage.

Finding places where gas was seeping to the surface, the Chinese formed crude pipelines out
of bamboo shoots to transport the gas, where it was used to boil sea water, separating the salt and
making it palatable.

51
Britain was the first country to commercialize the use of natural gas. Around 1785, natural gas
produced from coal was used to light houses, as well as streetlights.

Naturally occurring natural gas was discovered and identified in America as early as 1626. In
1859, Colonel Edwin Drake (a former railroad conductor who adopted the title ‘Colonel’ to impress
the townspeople) dug the first well. Drake hit oil and natural gas at 69 feet below the surface of the
earth.

Most historians characterize this well as the beginning of the natural gas industry in America. A two-
inch diameter pipeline was built, running 5 and ½ miles from the well to the village of Titusville,
Pennsylvania. The construction of this pipeline proved that natural gas could be brought safely and
relatively easily from its underground source to be used for practical purposes.

In 1821, the first well specifically intended to obtain natural gas was dug in Fredonia, New York by
William Hart. After noticing gas bubbles rising to the surface of a creek, Hart dug a 27-foot well to
try and obtain a larger flow of gas to the surface. Hart is regarded by many as the ‘father of natural
gas’ in America. Expanding on Hart’s work, the Fredonia Gas Light Company was eventually
formed, becoming being the first American natural gas company.

During most of the 19th century, natural gas was used almost exclusively as a source of light.
Without a pipeline infrastructure, it was difficult to transport the gas very far, or into homes to be
used for heating or cooking. Most of the natural gas produced in this era was manufactured from coal,
rather than coming from a well. Near the end of the 19th century, with the advent of electricity,
natural gas lights were converted to electric lights. This led producers of natural gas to look for new
uses for their product.

In 1885, Robert Bunsen invented what is now known as the Bunsen burner. He managed to
create a device that mixed natural gas with air in the right proportions, creating a flame that could be
safely used for cooking and heating. The invention of the Bunsen burner opened up new opportunities
for the use of natural gas in America, and throughout the world. Without any way to transport it
effectively, natural gas discovered pre-WWII was usually just allowed to vent into the atmosphere, or
burnt, when found alongside coal and oil, or simply left in the ground when found alone.

52
 One of the first major pipelines was constructed in 1891. This pipeline was 120 miles long,
and carried natural gas from wells in central Indiana to the city of Chicago. However, this early
pipeline was not very efficient at transporting natural gas. It wasn’t until the 1920s that significant
effort was put into building a pipeline infrastructure. After World War II, new welding techniques,
along with advances in pipe rolling and metallurgy, further improved pipeline reliability. This post-
war pipeline construction boom lasted well into the ‘60s, and allowed for the construction of
thousands of miles of pipeline in America.

Once the transportation of natural gas was possible, new uses for natural gas were discovered.
These included using natural gas to heat homes and operate appliances such as water heaters, ovens,
and cook tops. Industry began to use natural gas in manufacturing and processing plants. Also,
natural gas was used to heat boilers used to generate electricity. The expanded transportation
infrastructure had made natural gas easy to obtain, and it was becoming an increasingly popular
energy choice.

EVALUATION OF INDIAN GAS AND OIL INDUSTRY

The story of oil exploration in India began in the dense jungles and swamps and river-valleys
of the north-eastern corner of the country. Lt. R. Wilcox, Major A. White, Capt. Francis Jenkins,
Capt. P.S. Haney, W. Griffith, W.Licut Bigger–they all saw at different times petroleum seepages
from the banks of river Dishing. Mr. C.A Bruce (1828) and Mr. H.B. Medicos (1865) of the
Geological survey of India also saw oil seepages while prospecting for coal in upper Assam.

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

However, the first well dug at Dingo field in Assam in September 1889 and completed in
November 1890 at depth of 662 feet by Assam Railways and Trading Company Limited (AR&T Co.
Ltd.), registered at London, is regarded as the first commercially successful oil discovery (200 gallons
per day).
AR&T subsequently acquired a 77.7 square kilometre petroleum-rights concession in the Mecum
area of Assam, and by 1893 had drilled 10 wells at Dingo producing 757.08 litters/day. AR&T

53
established Assam Oil Company (AOC) in 1899 with a capital of £310,000 to take over the petroleum
interests of AR&T, including the Dingo and Mecum concessions and set up a small refinery at
Margarita (Upper Assam) with a capacity of 500 bop to refine the Dingo-oil. Thereafter, systematic
drilling began in 1891 and two years later in 1901, Asia's first oil refinery was set up in at Dingo. It is
still functional and world's oldest operating refinery.

Failure to utilize geologic reasoning, promiscuous wild cutting, misguided investment and
nonchalance of the management towards technical support led to compounding of errors by AOC
which made the company technically and financially impotent. Later on UK based Burma Oil
Company (BOC) arrived in 1911 in Upper Assam (Burma Valley) and in 1915, after acquiring Oil
interest from Budderpore Oil Co. Ltd (formed by a syndicate of Budderpore tea garden during 1911-
13) began testing option in the Badarpur structure in the Sumac valley (Upper Assam). Gradually by
1921, in a phase-wise manner, BOC acquired petroleum interests of AOC. Torsion balance which
was successfully adapted for geophysical surveys of oil was used at Bordubi (Assam) by a
geophysical team in 1925. The Indian Co. "TATA engineering co." has also drilled several wells in
Jagatai, Gujarat and produced small amount of gas in 1930s.
In 1937, BOC jointly with British Petroleum (then Anglo Iranian Oil Co.) and Shell proposed
to Govt. of India to carry out a geophysical survey of the important plain areas of India. The proposal
was accepted and a new form of grant known as geophysical license was issued by Assam
Government. In Assam, successful seismic survey was carried out in Naharkatia during 1937-39,
triggering new enthusiasm in oil search and it became forerunner of discoveries in Assam basins and
others also. The successful outcome of well NHK-1 in 1937 was vindication for geophysical method
in oil exploration.

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

With the intention of intensifying and spreading exploration to various parts of the country a
separate Oil and Natural Gas Directorate (ONGD) was set up in 1955, as a subordinate office under

54
the then Ministry of natural Resources and Scientific Research. The department was constituted with
a nucleus of geoscientists from Geological Survey of India. But soon after its formation it was
realized that the directorate cannot function efficiently with its limited financial and administrative
liberty and in early 1956 its status was changed to a commission. In October 1959 the ONGC was
made a statutory body by an act of parliament delegating it more power but it remained under
Ministry. The job of ONGC was defined as "to plan promote, organize and implement programs for
development of Petroleum Resources and the production and sale of petroleum and petroleum
products produced by it, and to perform such other function as the central government may, from
time to time, assign to it".ONGC systematically started its geophysical surveys on area considered
prospective on the basis of global analogy. Further, thrust was given for survey in area of Himalayan
foothills and adjoining Gang plains, alluvial tracts of Gujarat, upper Assam and basins of Bengal. The
exploratory drilling carried out in Himalayan foothill during 1957, remained unsuccessful.
Within a year of being formed, ONGC discovered oil at Cambay. The giant Ankles war field
in the state of Gujarat in 1960, Karol in 1961, Law in 1964, Gemlike in 1968 and Gas discovery-
Mahertibia in Rajasthan in 1969 were discovered subsequently.Meanwhile, in 18th February 1959,
for development and production of Nahorkatia and Moran prospects and to increase the pace of
exploration in Assam, Oil India Private Limited was incorporated as a rupee company to take over
BOCs affairs in Assam. The company was owned 2/3rd by AOC/BOC and 1/3rd by Government of
India and in 1961 they became equal partners by transforming OIL into a JV company. OIL
discovered Kusijan oilfield in 1969 and Jorajan oilfield in 1972. Later, Eocene gas was discovered by
OIL in Tengakhat field of Assam in 1973.Offshore exploration was initiated by ONGC in the form of
experimental seismic survey in 1962 in Gulf of Cambay and later in western offshore. Detailed
seismic surveys in western offshore resulted in a discovery of large structure on Bombay-offshore in
1972-73 and drilling lead to India's biggest commercial discovery - Bombay High. Encouraged by
this discovery, exploration was furthered in entire western off-shore including Kerala-Konkan basin
and eastern offshore area. This led to large discovery of Bassein and Neelam in western offshore and
PY-3 & Ravva in Eastern offshore. OIL also ventured from Assam to Orissa both in onshore and
offshore. During 1979-89 it went to Andaman offshore and Rajasthan onshore. By the end of 80s
ONGC and OIL has together drilled nearly 3100 wells totaling 4.9 million metres.

ONGC's geo scientific survey spread out to UP, Bihar, Tamil Nadu, Rajasthan, J & K, Kutch
and Andhra Pradesh. By mid 1980s ONGC successfully discover prospects in Cauvery and KG basin.

55
Kharsang oilfield was discovered by OIL in 1976 and in the same year ONGC discovered one of
India’s biggest gas find of 283.17 BCM in the Bassein fields off Mumbai’s coast. Other gas fields
discovered by ONGC were mid-Tapti, south Tapti and B-55. In 1978, OIL ventured out of Assam
into Orissa offshore and onshore. OIL also ventures into offshore Andaman’s in 1979-89 and onshore
Rajasthan. Till the end of 1970s, Indian E&P industry was dominated by the two National Oil
Companies (NOCs) - ONGC and OIL to whom PELs were granted on nomination basis. Exploration
was primarily confined to on land and shallow offshore.
The strategic initiative was taken by government in 1979 to attract foreign investment,
technology and capital to deal with future commitment and challenges of Indian oil economy by
offering 32 exploration blocks (17 offshore & 15 onshore). Government started offering block
systematically through bidding. These rounds are also known as Pre-NELP Exploration rounds. The
three rounds during 1980-1986 were not very successful.

By 1981 Government took over OIL and it became full-fledged PSU. In 1982, ONGC made
its biggest gas discovery in Gandhar, Cambay basin Gujarat and by 1986 KG basin were put in global
map with several substantial discoveries made. By the end of 1986, 3rd round of international bidding
for exploration block were offered. OIL and ONGC were offered 40% stake in JV if field was found
viable. Few foreign companies participated but there was no committed exploration or breakthrough
discovery. The foreshore terminal of IOC was commissioned in Madras (Chennai). However OIL and
ONGC's effort continued in several parts of India and by 1989 OIL discovered gas in Tanot (Mata
Temple) in Rajasthan and ONGC discovered south Heera in Mumbai offshore.

In 1990, 4th round of bidding invited and for the first time, Indian companies were allowed to
participate with foreign companies. However no major discovery was made with these partnerships.
In 1991, Government of India (GoI) adopted liberalized economic policy that led to de-licensing of
core group including petroleum sector and partial dis-investment of government share including other
measures. As a result, ONGC was re-organized as a Limited company (under the Company’s Act,
1956) from Oil and Natural Gas Commission to Oil and Natural Gas Corporation Limited. To give
momentum to Petroleum sector in India, GoI came up with more lucrative offers in 1994. However
this also led to disagreement in Production Sharing Agreement. In couple of years, ONGC ventured
into CBM in Damodar valley and explored EOR options in heavy oil belt of North Gujarat.

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 By 1996, Government conducted 5 rounds of bidding and offered 126 blocks having area in
the range of 1 square km to 50000 square km. Beside National Oil Companies and Indian Private
Companies, some important companies like Shell, Enron, Amoco and Occidental participated in
exploration and contracts were awarded to them.

The government efforts particularly during 1991-1996 gave required thrust for opening up Oil
and Gas sector in India. After this, the process of opening the sector became more streamlined. Many
private players also joined in development of this industry. Hindustan Oil Exploration Company
(HOEC) which started its E & P venture in 1991 was among few such initial domestic private
players.
In view of the liberalized policy adopted by GoI, a need for an independent upstream regulatory body
called the Directorate General of Hydrocarbons (DGH) was envisaged to oversee and review the
oilfield development programs so as to conform to sound reservoir engineering practices in line with
national interests. Thus, DGH was formed vide GoI resolution dated 08.04.1993.

After the Nomination era till late 1970s, Pre-NELP Exploration era (1980-95) and Pre-NELP
Field rounds (1993-94), Government of India formulated a policy called as New Exploration
Licensing Policy in 1997. The main objective was to attract significant risk capital from Indian and
Foreign companies, state of art technologies, new geological concepts and best management
practices to explore oil and gas resources in the country to meet rising demands of oil and
gas. This policy NELP was approved in 1997 and it became effective in February, 1999. Since then
licenses for exploration are being awarded only through a competitive bidding system and
National Oil Companies (NOCs) are required to compete on an equal footing with Indian
and foreign companies to secure Petroleum Exploration Licenses (PELs). Nine rounds of bids have
so far been concluded under NELP, in which production sharing contracts for 254 exploration blocks
have been signed.

• 1889: W.L.Lake of Assam Railway and Trading Co. (AR & T Co) started Digboi Well No-1
Lake used to urge his men “Dig boy, dig” and hence the name “Digboi” The discovery of the
‘Digboi Oil field’ in Upper Assam was a landmark in the history of oil.

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• 1899: AR&T Co formed a new company Assam Oil Company (AOC) and set up a small
refinery at Margharita (Upper Assam) with a capacity of 500 bopd to refine the Digboi-oil.
• 1901: Digboi refinery commissioned.
• 1911: Burmah Oil Company (BOC) arrives on the Indian scene.
• 1921: Burmah Oil Company (BOC) takes over Assam Oil Company (AOC).
• 1925: India’s first attempt to use geophysics in its search for oil with a Torsion balance
survey in the Bordubi area.
• 1937-39: Seismic surveys were initiated in and a major ‘High’ was located at Nahorkatiya in
Assam the successful outcome of NHK-1 was a triumphant vindication of the geophysical
method of exploration. Nahorkatiya triggered a new wave of enthusiasm in the search for oil
in the country and became the forerunner of discoveries not only in Assam basin but also in
other basins.
• 1948: Geological Survey of India (GSI) started geophysical surveys in Cambay area.
• 1956: Moran oil field discovered by AOC.August 14, 1956 Oil & Natural Gas Commission
(ONGC) was established. October 15, 1959
• 1959: Oil India Private Ltd (OIL) incorporated and registered as a Rupee Company.
• 1960: Oil struck at Ankleswar in Gujarat and Rudrasagar in Assam.
• 1961: GOI and BOC become equal partners in OIL.
• 1962: The first public sector refinery comes up at Guwahati.
• 1963: World’s first crude oil conditioning plant commissioned at Nahorkatiya. India’s first
deviated well NHK122 drilled by OIL.
• 1963: ONGC started offshore seismic surveys in Gulf of Cambay.
• 1968: Oil discovered in Geleki by ONGC.OIL commissioned the 1158 km oil pipeline to
Guwahati and Barauni refineries.
• 1970: India’s first offshore well spudded in the Gulf of Cambay.
• 1974: Drillship Sagar Samrat strikes oil in Bombay High.
• 1981: First well spudded in Godavari offshore.14 October 1981 OIL becomes a Government of
India enterprise.
• 1983-84: Gas struck at Razole in Andhra Pradesh and Gotaru in Rajasthan.
• 1984: First Early Production system (EPS) commences in Gujarat.
• 1984-85: Oil struck in kutch offshore, Godavari offshore and Changmaigam in Assam.

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• 1986-87: ONGC strikes oil in the Tapti offshore area and Namti structure (Assam).
• 1988-89: Commercial gas finds in Rajasthan by OIL Nada field in Gujarat discovered.
• 1989-90: Western offshore production reaches a peak of 21.72 MMT.
• 1989-90: South Heera field discovered in Mumbai offshore.
• 1998: New Exploration Licensing Policy (NELP) launched and 48 Exploration blocks offered
under round-I.
• 2000: Second round of New Exploration Licensing Policy launched and 25 Exploration blocks
offered.
• 2001: One CBM block awarded on nomination basis.
• 2002: First round of CBM blocks bidding held and 5 blocks awarded.
• 2003: Fourth round of New Exploration Licensing Policy launched and 24 Exploration blocks
offered.
• 2004: Second round of CBM blocks bidding held and 5 blocks awarded.
• 2005: Fifth round of New Exploration Licensing Policy launched and 20 Exploration blocks
offered.
• 2006: Sixth round of New Exploration Licensing Policy launched and 55 Exploration blocks
offered.
• 2006: Third round of CBM blocks bidding held and 10 blocks awarded.
• 2007: Seventh round of New Exploration Licensing Policy launched and 57 Exploration blocks
offered.
• 2010: Eighth round of New Exploration Licensing Policy launched and 32 Exploration blocks
awarded.
• 2012: Ninth round of New Exploration Licensing Policy launched and 14 Exploration blocks
awarded.
• 2016: Discovered Small Field Round Launched on May 25th 2016
Oil and Gas Companies in India

TOP TEN COMPETITIORS OF OIL AND GAS INDUSTRY IN INDIA

The production of Oil and Gas is the baseline of a country economy in many ways. It forms the
backbone of the economy. Here is a list of top 10 oil and gas companies in India; these are the best

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companies in oil and gas exploration, petroleum products sector. And ranking process of Oil
companies is frequently being updated by our expert team.

1. Indian Oil Corporation

Corporate Office – New Delhi, India | Turnover – 28 Billion Dollar |

Employees – 35000+| Business – Oil, gas and Petroleum products |

Sector – Public Sector | Career Website – www.iocl.com/PeopleCareers/Careers.aspx

When a company makes a turnover of as much as Rs. 1,30,203 crore or US$ 29.8 billion in a single
year(2013), the company among the top 10 oil and gas company in India.

2. ONGC

Corporate Office – Dehradun, Uttranchal | Turnover – 6.50 Billion Dollar |

Employees – 33000+ | Business – Oil, gas and Petroleum products |

Sector – Public Sector

The company is basically pone of the most reputed not only among the oil and gas companies of
the nation but among the top class companies of any stream in the nation. The company is just one of
the best.

3. Bharat Petroleum
Corporate Office – Bangalore, Karnataka | Turnover – 40 Billion Dollar |Employees – 15000+
| Business – Oil, gas and Petroleum products |The company provides the citizen with the best quality
products that they opt for in the country and at the relatively cheap price possible. The company
seems to expand the business with the new app available

4. Reliance Petroleum Limited

Corporate Office – Ahmedabad, Gujrat | Turnover – 670 Million Dollar |

Employees – 10000+ | Business – Oil, gas and Petroleum products |

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The company has its effect and is surely the one that has a high reputation among the companies of
this trade. The company simply helps the clients to get the best at the cheapest and this all surely is
enough a reason to make it countable among the top 10 oil and gas companies in India

5. Essar Oil Limited

Corporate Office – Noida, Uttar Pradesh| Turnover – 9 Billion Dollar |

Employees – 75000+ | Business – Oil, gas and Petroleum products |

Sector – Public Sector | Career Website – www.essar.com/careerportal

The company has been able to blend the perfect combinations of the talent and the youth which
makes a great combo together. Thus this company has got many accolades on this regard.

6. Cairn India

Corporate Office – Gurgaon, Haryana | Turnover – 3400 Million Dollar |

Employees – 2000+ | Business – Oil, gas and Petroleum products |

Sector – Public Sector | Career Website – www.cairnindia.com/Careers/Pages/default.aspx

The company has the reputation of collecting a revenue of 2.4 billion revenue being collected in the
financial year 2015, thus giving you a slight idea of the giant oil and gas company in the nation. This
is surely one of the largest of its kind.

7. Gas Authority of India

Corporate Office – New Delhi, Delhi | Turnover – 8 Billion Dollar |

Employees – 4000+ | Business – Oil, gas and Petroleum products |

Sector – Public Sector | Career Website – www.mphasis.com/careers

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 GAIL India is not the company that will simply known for any one of its departments in the
field. The company is to be claimed to be the best in each and every field that you would ever think
of. There are many of the ways in which the company has been emerging out as the prominent leaders
in the previous years and the legacy seems to follow quiet well.

8. Hindustan Petroleum Corporation

Corporate Office – Mumbai, Maharashtra |  Turnover – 8 Million Dollar |

Employees – 18000+ | Business – Oil, gas and Petroleum products |
Sector – Public sector | Career Website – Unknown
Hindustan Petroleum Corporation Limited is the company owing to the great facilities that it
provides to the customers. The company has also been one of the leaders in the car fuel world and has
been able to drive quiet a huge number of customers in the trade and this is what has helped the
company reach the top of the oil and gas companies in India.

9. Oil India Ltd

Corporate Office – Mumbai, Maharashtra | Turnover – 35 Billion Dollar |

Employees – 11000+ | Business – Oil, gas and Petroleum products |

Sector – Public Sector | Career Website – www.oil-india.com/OCareer.aspx

This is one company that must be having one of the best team of the most dedicated workers and the
work force seems to have been able to provide the users with all that they would ever want. The
company started in the year 1889 and is one of the oldest among the oil companies in India.

10.Tata Petodyne

Corporate Office – Mumbai, Maharashtra | Turnover – 100 Billion Dollar (Tata group) |Employees –
Unknown | Business – Oil, gas and Petroleum products |

Sector – Private Sector | Career Website – www.tatapetrodyne.in/career.htm

TATA the company has been able to help one and all in the nation with something or the other then
let it be the salt that you use in your daily meals or the petrol or fuel that you use in your car and other
purpose.

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GROWTH OF GAS INDUSTRY IN INDIA

• Oil consumption is estimated to expand at a CAGR of 3.3 per cent during FY2008–16E to reach
4.0 mbpd by 2016
• Due to the expected strong growth in demand, India’s dependency on oil imports is likely to
increase further
• Rapid economic growth is leading to greater outputs, which in turn is increasing the demand of
oil for production and transportation
• With rising income levels, demand for automobile is estimated to increase.

Government Initiatives
Some of the major initiatives taken by the Government of India to promote oil and gas sector are:
• The Union Cabinet has approved the National Mineral Exploration Policy (NMEP), which will
pave the way for auction of 100 prospective mineral blocks to attract private sector in
exploration, besides involving state-run agencies.
• Mr Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas and Mr Prakash
Javadekar, Minister of State for Environment, Forests and Climate Change have launched a
pilot programme, aimed at introducing compressed natural gas (CNG) as fuel for two-wheelers.

• The Ministry of Petroleum and Natural Gas is seeking to enhance India's crude oil refining
capacity through 2040 by setting up a high-level panel, which will work towards aligning
India's energy portfolio with changing trends and transition towards cleaner sources of energy
generation.

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• The Hydrocarbon Sector Skill Council (HSSC), which was set up by the Government of India
under its Skill India initiative, plans to train over 1.9 million people in the oil and gas sector
over the next 10 years, to cater to the rising skill needs of the industry.
• The Union Cabinet has allowed state-owned oil firms to evolve their own crude oil import
policies which involve freedom to choose source companies as well as pricing for their crude oil
imports, thus allowing them to compete in the market effectively.
• In a major drive to enhance the petroleum and hydrocarbon sector, Government of India has
introduced initiatives like the Hydrocarbon Exploration Licensing Policy (HELP); Marketing
and Pricing freedom for new gas production, grant of extension to the Production Sharing
Contracts and assigning the Ratna offshore field award to Oil and Natural Gas Corporation
(ONGC) for development.
• Mr Dharmendra Pradhan, Minister of State (Independent Charge) for Petroleum and Natural
Gas has released the Hydrocarbon Vision 2030 for North East India, with the objective of
leveraging the north-eastern region’s hydrocarbon potential; enhance access to clean fuels,
improve availability of petroleum products, and facilitate economic development and to involve
local population in the economic activities in this sector.
• The Government of India plans to incentivize gas production from deep-water, ultra deep-water
and high pressure-high temperature areas which are presently not exploited on account of higher
cost and risk, and also to augment the investment in nuclear power generation in the next 15 to
20 years.
• The Government of India is in the process of identifying at least 50 potential blocks of 100 sq
km and above to be given to companies for bringing private investment in the mineral
exploration sector. The Ministry of Petroleum and Natural Gas has put up for comments a draft
policy, to opt for revenue-sharing model while auctioning future oil and gas blocks for
exploration to private companies, compared to production-sharing mode earlier, in order to
make the process more transparent and market-oriented.
• Government of India entered into bilateral discussion with Norway to extend co-operation
between the two countries in the field of oil and natural gas and hydrocarbon exploration.
• To strengthen the country`s energy security, oil diplomacy initiatives have been intensified
through meaningful engagements with hydrocarbon rich countries.

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 THEORETICAL FRAMEWORK

EMPLOYEE RETENTION

Introduction
Employee Retention involves taking measures to encourage employees to remain in the
organization for the maximum period of time. It is a process in which the employees are encouraged
to remain with the organization for the maximum period of time or until the completion of the
project. Employee retention is beneficial for the Organization as well as the employee. Effective
employee retention is a systematic effort by employers to create and foster an environment that
encourages current employees to remain employed, by having policies and practices in place that
address their diverse needs. Retention of key employees is critical to the long-term health and success
of any organization. It is a known fact that retaining the best employees ensures customer satisfaction,
increased product sales, satisfied colleagues and reporting staff, effective succession planning, and
deeply embedded organizational knowledge and learning. Employee retention matters, as
organizational issues such as training time and investment, lost knowledge, insecure employees, and a
costly candidate search are involved. Corporate is facing a lot of problems in employee retention
these days. Hiring knowledgeable people for the job is essential for an employer, but retention is even
more important than hiring.

There is no dearth of opportunities for a talented person. There are many organizations which
are looking for such employees. If a person is not satisfied by the job he’s doing, he may switch over
to some other more suitable job. The top organizations are on the top because they value their
employees and they know how to keep them glued to the organization. Intelligent employers always
realize the importance of retaining the best talent. Retaining talent has never been so important in the
Indian scenario; however, things have changed in recent years. Retention of key employees and
treating attrition troubles has never been so important to companies. In an intensely competitive
environment where HR managers are poaching from each other, organizations can either hold on to
their employees tight or lose them to competition. For gone are the days when employees would stick
to an employer for years for want of a better choice. Employees stay and leave organizations for some
reasons. The reason may be personal or professional .These reasons should be understood by the
employer and should be taken care of. The Organizations are becoming aware of these reasons and

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adopting many strategies for employee retention. A strong retention strategy, therefore, becomes a
powerful recruitment tool.
Employee retention is a new era of modern technology and competitive business environment.
Organizations are continuously changing this changing environment is not only effecting the
organizations but also the employees working in it. In order to maximize organizational efficiency
and for optimal utilization of the resources, human resources must be managed properly. Human
resource management plays a vital role in this regard. They are responsible that how employees are
treated in the organization. Employee retention is a vital issue and challenge to all the organizations
now days. There are numbers of factors which promote the employees to stay or leave the
organization. It may be external factors, internal factors and the combined effect of both. It is the need
of the hour that hr managers should identify the needs of the employee and then devises the retention
strategies. One strategy does not fit to all as different individuals have different priorities. Hr
professionals face the vital challenge to retain talented employees. Employee retention is very critical
to the long term health of any organization.

When an organization loses its talented employee it lefts a negative impact on innovation,
customer satisfaction, knowledge gain during the past years and on the profitability of the
organization more over replacing cost of another employee contribute a lot to the organization.

It is the need of the hour that hr managers should identify the needs of the employee and then
devises the retention strategies. One strategy does not fit to all as different individuals have different
priorities. Hr professionals face the vital challenge to retain talented employees. Employee retention
is very critical to the long term health of any organization. When an organization loses its talented
employee it lefts a negative impact on innovation, customer satisfaction, knowledge gain during the
past years and on the profitability of the organization. More over replacing cost of another employee
contribute a lot to the organization.

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Definition of the Study:

He explains the first key to success is indeed people. He fined the right people first; the vision
and strategy can follow. It is the people in organization, who are the key to success.

The organizations want to hold the valued employees. Many approaches are used in this
regard. The one approach sees success in rewards the second in making jobs more valuable (training
and advancement).
- Jim Collins

Retain Employees:
Motivation is necessary for work performance because, if people do not feel inclined to
engage themselves in work behavior, they will not put in necessary efforts to perform well. However,
performance of individual in the organization depends on variety of factors besides motivation. It is
therefore desirable to identify various factors. For instance, employees’ knowledge and skills are
important performance drivers. Another factor is the company’s ability to retain its employees with
attractive benefit packages. Motivation is a prominent tool to retain employees with greater
compensation packages.

Companies have now realized the importance of retaining their qualitative workforce and
retaining their quality performers, contributes to productivity of the organization and increase morale
among employees. Middle and top management plays a vital role in the people dimensions of the
organization. The organization culture in a long run converts to organizational ethics and people feel
reluctant to leave by making it as a stepping stone when appreciation and rewards in form of
compensation awaits them in comparisons to the market trend. There are four basic factors that play
an important role in increasing employees’ retention, include: salary and remuneration, providing
recognition, benefits and opportunities. Salary these days hardly reduce turnover. Today’s employees
look beyond money factor. In order to ensure that organizations are behaving more customer-
oriented, they need to be equally employee centric in order to match the intellectual property and their
products and services.

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 Reasons for leaving the organization:
People tend to leave organization for variety of reasons. The most common among them are:
• Job and Person mismatch:
If there is a selection fault that has occurred and if the job and person are not matching each
other, then it is likely the candidate will leave the organization. This problem could also come from
there being a mismatch in terms of experience and qualification of the person and job analysis.

• No growth opportunities:
People who like to function in challenging environments and are more effective in companies
which offer rapid growth opportunities tend to leave the companies which are slow growing. Some
organizations do not enhance skills of the people through good training programs.

• Lack of appreciation:
When the employee knows that he is performing well, but does not get timely appreciation from
the company, he looks for other opportunities
• Lack of trust and support:
If the culture of the company is not transparent and the management lacks trust in employees
and do not support its people then they start thinking negatively about the company which tends to
leave the company.
• Work life imbalance:
If the company does not encourage a positive balance between personal and
professional life of the employee, people will not be happy.
• Personal issues:
Relocation of spouse, childbirth, emergency in the family requiring their presences at home are
some of the reasons for leaving the company.

• Compensation:
If the person thinks that he is not paid enough by the company he will look for the better
opportunity with higher salary and compensation.

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After Effects of a Poor Employee Retention:

Employees are the major assets of any organization

An organization can’t survive if the individuals are not focussed and serious about their work.
The success and failure of any organization depend on the hard work put by the employees to achieve
the targets of the organization. It is a common observation that employees who spend a good amount
of time in the organization tend to know more about it and thus contribute effectively. They develop a
sense of loyalty towards their workplace and strive hard to live up to the expectations of the
management.

There are several reasons as to why an employee decides to move on. Monetary dissatisfaction, a
negative environment at the workplace, dirty politics, complicated hierarchies, lack of challenging
work, poor supervision being the major ones.

In the current scenario almost all the leading organizations are facing the problem of employee
retention. Management somehow fails to stop the high potential employees and thus face the negative
consequences. It becomes really difficult for the organization to retain the employees who decide to
quit for a better opportunity.

Some of the after effects of poor employee retention:

 Every organization invests its time and money in training a new joinee to bring him at
par with the existing employees

The organization is at a complete loss when the employees quit all of a sudden. Hiring needs to be
done all over again and still there is no surety whether the new joinee would be apt for the profile or
not? One wrong person hired and the output of the entire team and eventually the organization goes
for a toss.

 Employees who spend a considerable amount of time in any organization know it in and
out and thus can perform better

They are well familiar with the company policies and adjustment is never a problem. Employees who
come and go find it very difficult to settle down in a new environment and are thus always in a state

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of dilemma. They are not able to perform up to their potential and eventually the work and the
organization suffers.

 Individuals who have the habit of changing jobs frequently never get attached to any
particular organization

They just treat the organization as a mere source of earning money. They are never serious
about their work and fail to accomplish the tasks within the desired time frame. It hardly matters to
them whether the organization is performing well or not? In cases of poor retention policies,
employees are just not bothered about the reputation of their office and avoid taking initiative to do
something new. The employees who are there for a long time in the organization are trustworthy and
the management can rely on them anytime.

 When individuals leave any organization, they are more likely to join the competitors

Sometimes they tend to take confidential data along with them to create an impression in their new
organization. This way the plans of the organization get leaked even before implementation and they
fail to do anything great. Employees must not share any information with an external party in any
manner what so ever.

 An organization can’t perform well if the employees speak negative about it

It is essential to have a group of loyalists who play an important role in furthering the brand image of
the company.

 Employees working with an organization for a long time never badmouth it and are
somewhat emotionally attached to it

People leaving in a short span always speak ill about their previous organizations. The loyalty factor
is almost zero and no one is ready to take ownership of work.

The HR department must take the initiative to discuss the several issues disturbing an employee and
try to sort it out as soon as possible. An organization must work hard towards retaining those who
really are important for the organization.

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Role of Motivation in Employee Retention:

Employee retention involves various steps taken to retain an employee who wishes to move on. An
employee must find his job challenging and as per his interest to excel at work and stay with the
organization for a longer period of time. The management plays an important role in retaining the
talented employees who are familiar with the working conditions of the organization and thus
perform better than the employees who just come and go.

Motivation plays an important role in employee satisfaction and eventually employee retention.

Motivation acts as a catalyst to an individual’s success. The team leaders and the managers
must constantly motivate the employees to extract the best out of them. If an employee has performed
exceptionally well, do appreciate him. Simple words like “Well done”, “Bravo”, “Good”, “Keep it
up” actually go a long way in motivating the employees. The top performers must be in the limelight.
The employees must feel indispensable for the organization. It is essential for the employees to be
loyal towards their organization to deliver their level best.

The superiors should send motivational emails to their team once in a week. Display
inspirational posters, photographs on the notice board for the employees to read and stay
motivated.

It is natural for an individual to feel low sometimes, but the superiors must ensure to boost
their morale and bring them back on track. No individual should be neglected or criticized. This
demotivates them. If they fail to perform once, motivate them and give them another opportunity.

Organize various activities and events at the workplace.

Engage the employees in productive tasks necessary for their overall development. The
management must show its care and concern for all the staff members. The employees must feel
secure at the workplace for them to stay motivated.

Whenever any company policy is to be formulated, the opinion of each and every employee
should be taken into consideration.

71
 Invite all of them on a common platform and ask for their suggestions as well. Freedom of
expression is must. Every employee must have a say in the organization’s guidelines as they are made
only to benefit them.

Incentives, perks, cash prizes are a good way to motivate the employees.

The employees who have performed well consistently should be felicitated in front of all the
staff members as well as the management. Give them trophies or badges to flaunt. Ask the audience
to give a loud applause to the employees who have performed well. This is a good way to motivate
the employees for them to remain happy and work with dedication for a longer duration. Others who
have not performed up to the mark also gear up for future. The names of the top performers must be
put on the company’s main notice board or bulletin board for everyone to see.

Appraisals are also an important way to motivate the employees.

The salaries of the performers must be appraised at regular intervals- an effective way to
retain the employees. Career growth is an important way to retain the talented employees. Give them
power to take some decisions on their own but the management must have a close watch on them so
that they do not misuse their power.

Retention strategies:

Here are some effective methods employers utilize in order to keep employees happy and to retain
them in the company.

• Training:

Through training, employers help employees achieve goals and ensure they have a solid
understanding of their job requirements.

• Mentoring:

A mentoring program integrated with a goal-oriented feedback system provides a structured

mechanism for developing strong relationships within an organization and is a solid foundation for
employee retention and growth.

72
• Use communication to build credibility:

No matter what the size of the organization, communication is central to building and maintaining
credibility. It’s also important for employees to know that the employer is really listening and
responds to employee input.

• Show appreciation via compensation and benefits

Offering things like competitive salaries, profit sharing, bonus programs, pension and health
plans, paid time off, and tuition reimbursement sends a powerful message to employees about their
importance at the organization.

• Coaching/feedback:

It’s important for companies to give feedback and coaching to employees so that their efforts stay
aligned with the goals of the company and meet expectations.

• Provide growth opportunities:

An organization should provide workshops, software, or other tools to help employees increase
their understanding of themselves and what they want from their careers and enhance their goal-
setting efforts. It’s important to provide employees with adequate job challenges that will expand
their knowledge in their field. According to Right Management, employees are more likely to stay
engaged in their jobs and committed to an organization that makes investments in them and their
career development.

• Make employees feel value:

Employees will go the extra mile if they feel responsible for the results of their work, have a
sense of worth in their jobs, believe their jobs make good use of their skills, and receive recognition
for their contributions.

• Lower stress from overworking and create work/life balance:

It’s important to match work/life benefits to the needs of employees. This could be in the form
of offering non traditional work schedule or extra holidays. Encouraging employees to set work/life

73
 goals, such as spending more time with their children, communicates that you really do want them to
have a life outside of work and achieve a healthy work/life balance.

• Foster trust and confidence in senior leaders:

Develop strong relationships with employees from the start to build trust. Employees have to
believe that upper management is competent and that the organization will be successful. An
employer has to be able to inspire this confidence and make decisions that reinforce it.

74
 DATA ANAYSIS AND INTERPRETATION

INTRODUCTION:

The data is collected from two different sources one is primary data and another one is
secondary data. In primary data I used the method of self organized questionnaire, and sample
technique is used is simple random technique.

Sample Size is 80.

1. Are you satisfied with your salary package?

Table: 01

S. No Salary package Number of Percentage of

Respondents Respondents
1 Yes 45 56

2 No 26 33

3 No comments 9 11

T0TAL 80 100

Graph:01

60

50

40
Number of
30 Respondents
Percentage of
20 Respondents

10

0
Yes No No comments

75
INTERPRETATION:

From the above graph, the opinions of employees are:

• 56% of the respondents are satisfied with the salary package

• 33% of the respondents are not satisfied with the salary package
• 11% of the respondents are not commenting on the question
• This indicates that more than half of the employees are satisfied with the salary package
provided by the company on the basis of their performances, which satisfies their needs

76
2. Are you satisfied with your job?
Table No: 2

S. No Job satisfaction No of Respondents Percentage

1 Yes 68 85
2 No 8 10
3 No comments 4 5
Total 80 100
Graph no:2

90
80
70
60
50
40 No of Respondents

30 Percentage
20
10
0
Yes No No
comments

INTERPRETATION:

From the above graph, the opinions of employees are:

• 85% of the respondents are satisfied with the job

• 10% of the respondents are not satisfied with the job
• 5% of the respondents are not commenting on the question
• This indicates that most of the employees are satisfied with their job which means that the
company has recruited the right candidate with required skills and knowledge for the right
position.

77
3. Are you happy with working environment in GAIL?

Table No: 3

S. No Working No of Percentage
environment Respondent
1 Yes 54 69
2 No 15 18
3 No comments 11 13
Total 80 100

Graph: 3

80
70
60
50
40 No of Respondent

30 Percentage

20
10
0
Yes No No comments

INTERPRETATION:

From the above graph, the opinions of employees are:

• 69% of the respondents are satisfied with the working environment.

• 18% of the respondents are not satisfied with the working environment.
• 13% of the respondents are not commenting on this question.
• This indicates that the working environment of the company is good which means most of the
employees are satisfied with the physical conditions of the building and social interactions at the
workplace.

78
4. Are you satisfied with the working hours of the company?

Table: 4

S. No Working hours No of Respondent Percentage

1 Yes 74 93
2 No 4 5
3 No comments 2 2
Total 80 100

Graph: 4

100
90
80
70
60
50 No of Respondent
40 Percentage
30
20
10
0
Yes No No comments

INTERPRETATION:

From the above table, the opinions of employees are:

• 93% of the respondents are satisfied with the working hours of the company.
• 5% of the respondents are not satisfied with the working hours of the company.
• 2% of the respondents do not comment on the question.
• This indicates that most of the employees are satisfied with the working hours of the company
which is from 9 am to 5 pm.

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5. Are your colleagues helpful?
Table: 5

S. No Relationship with No of Respondent Percentage

colleagues
1 Yes 51 64
2 No 10 12
3 No comments 19 24
Total 80 100

Graph: 5

70

60

50

40
No of Respondent
30 Percentage
20

10

0
Yes No No comments

INTERPRETATION:

From the above table, the opinions of employees are:

• 64% of the respondents feel that their colleagues are cooperative and helpful.
• 12% of the respondents feel that their colleagues are not helpful.
• 24% of the respondents have not given their opinion.
• This indicates that more than 60% of the employees expressed that they colleagues are
cooperative and helpful to achieve their organisational goals.

80
6. Is there any partiality with employees?

Table: 6

S. No Partiality No of Respondent Percentage

1 Yes 66 82
2 No 6 8
3 No comments 8 10
Total 80 100

Graph: 6

90
80
70
60
50
No of Respondent
40
Percentage
30
20
10
0
Yes No No comments

INTERPRETATION:

From the above graph, the opinions of employees are:

• 82% of the respondents feel that the managers show partiality at the workplace.
• 8% of the respondents expressed that their no partiality among employees.
• 10% of the respondents did not comment on this question.
• This indicates that favouritism do prevail in the company this may lead to discrimination among
the employees which could be a reason for employee exiting the company.

81
 7 . Does company provide Career Enhancement opportunities?the

Table: 7
S. No CAREER No of Respondent Percentage
ENHANCEMENT
1 Yes 53 65
2 No 27 35
3 Total 80 100

Graph: 7

70

60

50

40
No of Respondents
30 Percentage
20

10

0
Yes No

INTERPRETATION:

From the above graph, the opinions of employees are:

• 65% of the respondents are happy with the career enhancement opportunities
• 35% of the respondents are not satisfied with the career enhancement opportunities.
• This indicates that most of the employees are satisfied with the career enhancement opportunities
that prevail in the company which would satisfy the individual interests and goals of the
employees by developing their skills and knowledge.

82
8. Are you satisfied with Rewards provided by the Company :

Table: 8

S. No Promotion Opportunity No of Respondent Percentage

1 Strongly Agree 18 22
2 Agree 32 40
3 Strongly Disagree 14 18
4 Disagree 16 20
Total 80 100

Graph: 8

45
40
35
30
25
20 No of Respondent
15 Percentage
10
5
0
Strongly Agree Strongly Disagree
Agree Disagree

INTERPRETATION:

From the above table, the opinions of employees are:

• 62% of the respondents are satisfied with the rewards system of the company.
• 38% of the respondents are not satisfied with the rewards system of the company.
• This indicates that the rewards system of the company is satisfactory which motivates the
employee to improve their performances level in the workplace.

83
9. Does the company provide the opportunity to share Ideas at work?

Table: 9

Opportunity to share your ideas No of Respondent Percentage

S. No
1 Yes 20 25
2 No 36 45
No comments 24 30
Total 80 100

Graph: 9

50
45
40
35
30
25 No of Respondent
20 Percentage
15
10
5
0
Yes No No comments

INTERPRETATION:

From the above graph, the opinions of employees are:

• 25% of the respondents feel that they have an opportunity to share their ideas at workplace.
• 45% of the respondents feel that they do not have an opportunity to share their ideas at
workplace.
• 30 % of the respondents do not comment to this question.
• This indicates that the company is having high power distance so the employees could not share
their ideas with the management.

84
10. Are you Satisfied with Training Programs provided by the company :

Table: 10

S. No Training programs No of Respondent Percentage

1 Yes 34 42
2 No 30 38
3 No comments 16 20
Total 80 100

Graph: 10

45
40
35
30
25
No of Respondent
20
Percentage
15
10
5
0
Yes No No comments

INTERPRETATION:

From the above graph, the opinions of employees are:

• 42% of the respondents are satisfied with the training programs of the company
• 38% of the respondents are not satisfied with the training programs of the company
• 20% of the respondents do not comment on this question.
• This indicates that the training programs provided by the company are satisfactory which
motivates the employee in developing their skills and knowledge with rapid development in
technology.

85
11. Are you satisfied with the Incentives provided by the Company?

Table: 11

S. No Incentive No of Respondent Percentage

1 Strongly Agree 22 28
2 Agree 28 35
3 Strongly Disagree 12 15
4 Disagree 18 22
Total 80 100

Graph: 11

40
35
30
25
20 No of Respondent
15 Percentage
10
5
0
Strongly Agree Strongly Disagree
Agree Disagree

INTERPRETATION:

From the above graph, the opinions of employees are:

• 63% of the respondents are satisfied with the incentives provided by the company.
• 37% of the respondents are not satisfied with the incentives provided by the company.
• This indicates that the company provides incentives like bonus, vacations, gift cards, safety bonus
etc that motivate the employee to attain the organizational goals by satisfying their individual
goals.

86
12. Are you satisfied with the welfare measures provided by the company?
Table: 12

S. No Statutory Benefits No of Respondents Percentage

1 Strongly Agree 28 35
2 Agree 18 22
3 Strongly Disagree 10 12
4 Disagree 24 31
Total 80 100

Graph: 12

40
35
30
25
20 No of Respondents
15
Percentage
10
5
0
Strongly Agree Strongly Disagree
Agree Disagree

INTERPRETATION:

From the above graph, the opinions of employees are:

• 57% of the respondents are satisfied with the welfare measures provided by the company.
• 43% of the respondents are not satisfied with the welfare measures provided by the company.
• This indicates that the welfare measures provided by the company like house allowances,
healthcare, children education allowances , leaves etc are good which motivates the employee to
work in the organisation to achieve its goals

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13. Are you satisfied with the benefits provided by the company?

Table: 13

Benefit offered by the No of Respondent Percentage

S. No organization
1 Strongly Agree 22 27
2 Agree 36 45
3 Strongly Disagree 10 12
4 Disagree 12 16
Total 80 100

Graph :13

50
45
40
35
30
25 No of Respondent
20
Percentage
15
10
5
0
Strongly Agree Strongly Disagree
Agree Disagree

INTERPRETATION:

From the above graph, the opinions of employees are:

• 72% of the respondents are satisfied with the benefits provided by the company
• 37% of the respondents are not satisfied with the benefits provided by the company
• This indicates that the benefits like health insurance , compensation for injuries and illness,
family and medical leaves etc provided by the company are satisfactory which motivates the
employee to retain in the company.

88
14. Does the company provide motivation of employees through retention
strategies?
Table: 14

S. No Motivation of employee No of Respondent Percentage

1 Strongly agree 15 19
2 Agree 30 38
3 Disagree 28 35
4 Strongly Disagree 7 8
Total 80 100
Graph: 14

40
35
30
25
20 No of Respondent
15 Percentage
10
5
0
Strongly Agree Disagree Strongly
agree Disagree

INTERPRETATION:
From the above graph, the opinions of employees are:

• 57% of the respondents are motivated through the retention strategies provided by the company.
• 43% of the respondents are not satisfied with the retention strategies provided by the company
• This indicates more than 50% of the employees are satisfied with the retention strategies like
attractive packages, personnel training, recreation, grievances, growth opportunities etc that are
provided by the company to attain the organisational goals by satisfying their individual goals.

89
FINDINGS

 More than half (57%) of the employees are satisfied with the salary package provided by the
company. The salary package is determined based on the skills and knowledge exhibited by
the employee. The salary package is one most important retention factor of the employees
which motivates the employee to attain the organisational goals.
 Job satisfaction is the key factor for the retention of employee in the company. 85% of the
respondents are satisfied with their job which means that the company has recruited the right
candidate with required skills and knowledge for the right position and also provides the
appropriate environment which motivates the employees to achieve their desire goals.
 69% of the respondents are satisfied with the working environment of the company. The
working environment includes the physical conditions of the building and social interactions
at the workplace which plays an important role in retention of the employees.
 93% of the respondents are satisfied with the working hours of the company. The working
hours of GAIL is from 9:00 am to 5:00 pm and the company also provide breaks so that
employee is revealed from stress or work overload which increase the performance level of
the employees
 More than 60% (64%) of the respondents expressed that they colleagues are cooperative and
helpful to achieve their organisational goals. This indicates that team coordination is prevailed
in the company to achieve their organizational goals.
 66% of the respondents feel that the managers show partiality at the workplace. This indicates
that favouritism do prevail in the company this may lead to discrimination among the
employees which could be a reason for employee exiting the company.
 65% of respondents are satisfied with the career enhancement opportunities that prevail in the
company which would satisfy the individual interests and goals of the employees.
 62% of the respondents are satisfied with the rewards system of the company. The reward
system motivates the employee to improve their performances level in the workplace
 45% of the respondents feel that they do not have an opportunity to share their ideas at
workplace. This indicates that the company is having high power distance so the employees
could not share their ideas with the management.

90
 42% of the respondents are satisfied with the training programs of the company. This indicates
that the training programs provided by the company are satisfactory which motivates the
employee in developing their skills and knowledge with rapid development in technology.

 63% of the respondents are satisfied with the incentives provided by the company. The
incentives motivate the employee to attain the organizational goals by satisfying their individual
goals.
 57% of the respondents are satisfied with the welfare measures provided by the company.
Welfare measures provided by the company like house allowances, healthcare, children
education allowances, leaves etc increase the satisfaction level of the employees which
encourages the employee to retain in the company.
 72% of the respondents are satisfied with the benefits provided by the company. The benefits
provided by the company are satisfactory which motivates the employee to retain in the
company.
 More than 50% (57%) of the employees are satisfied with the retention strategies like attractive
packages, personnel training, recreation, grievances, growth opportunities etc that are provided
by the company to attain the organisational goals by satisfying their individual goals.

91
LIMITATIONS OF THE STUDY

 The time taken for my project study was 45 days to gather opinions from the Employees.

 The sample size selected is limited due to the constraint of time.

 Some of the employees had not cooperated in filling the questionnaire.

 The views expressed by the employees may be biased on their personal opinions.

 Difficult to schedule the meeting time.

92
CONCLUSIONS

The Study concludes that employees are the capital of every organisation. So to retain
employee, organisation has to satisfy the employee.

By offering many facilities, events, incentives, appraisal programs, transparent communication

can retain employees.

The strategies of GAIL, which are made for the employees, are successfully implemented and
the company is making profits on the basis of these strategies.

Employee Retention not only reduces the attrition rate but also increase the goodwill of the
company in the market.

The study gave a clear picture about the employee and their areas of dissatisfaction, the
outcome of the study will help the organisation to spot out the areas of dissatisfaction, thereby the
organisation can take effective steps to improve the employee satisfaction level towards their job and
to implement various policies. There are some employees who are not satisfied with their job due to
some reasons. The company should consider the suggestions so that there is a chance of making the
unsatisfied employee to change their attitude towards their respective jobs.

93
SUGGESTIONS

Retention is a critical to long term success of an organization. A Retention Strategy has

become essential if your organization is to be productive over time and can become an important part
of your hiring strategy by attracting the best candidates. Some of the suggestions for this can be
summarized as follows:

1. The company has to provide career enhancement opportunities through job rotation, job
enlargement, job enrichment and providing promotion opportunities according to their
qualification and eligibility so that employees can retain in the company.
2. The working environment of the company is the key determinant of the employee quality of
work and production level.
3. Performance appraisal programs enhance employee salary by providing incentives and bonus.
These programs have to be twice a year which increases the satisfaction level of the employees.
4. The company should provide a platform for the employees to share their ideas and opinions.
5. The management should provide welfare measures, benefits to employees that lead to increase
the job satisfaction which helps in retention of employees.
6. Training programs help in enhancing knowledge and skills so these programs helps in achieving
career goals of employees.
7. There should be good communication between team leader and employee, timely motivation
and feedback helps in retention of employees.
8. The company can reduce their employee retention problem by offering promotions to the
employee in order to attain their individual goals by accomplishing the company goals.
9. Rewards and recognition are to be provided to increase the satisfaction level of the employees
by the company.
10. Weekly meeting should be conducted where the employee expresses their problems and
suggestions are provided by the team leaders.

94
 BIBLIOGRAPHY

Reference books:

 Human Relations Management by K. Aswathappa published by MCGraw Hill publishing

company limited in 2013.
 Personnel & Human Resource Management by P. Subba Rao published by Himalaya
Publication House in 2012.
 Human Relations Management by N.G. Nair & Latha nair published by S Chand and co in
1999.
 Research Methodology Methods and Techniques by Kothari published by New Age
International Publications in 2014.
 The employee Retention Handbook by Taylor Stephen published by CIPD publications in 2002.
 The Employee Recruitment and Retention Handbook by Diane Arthur published by Amacom in
2001.

Web sites:

 www.gailonline.com
 https://en.wikipedia.org/wiki/GAIL
 www.ibef.org/industry/oil-gas-india
 www.trendingtopmost.com/...top10/India/oil-gas-companies-India
 infobharti.com/India’stop10

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QUESTIONNAIRE

Dear Sir/Madam

I am M. DEEPIKA, pursuing MBA in GIET ENGINEERING COLLEGE, Rajahmundry. I

am doing a project on “EMPLOYEE RETENTION” with special reference to GAIL Rajahmundry. I
request you to spare your valuable time and kindly corporate and fill the questionnaire. Tick the
option which ever you feel is relevant to the respective questions. This information provided will be
kept confidential and will be used only for the academic purpose.

DEMOGRAPHIC DETAILS (Personal Details)

1. Name :

2. Age :
a. 20years To 25years [ ]
b. 26years To 30years [ ]
c. 31years To 35years [ ]
d. Above 36years [ ]

3. Gender:
a. Male [ ]
b. Female [ ]

4. Monthly Salary:
a. Below 6000rs [ ]
b. 6001rs To 12000rs [ ]
c. 12001rs To 18000rs [ ]
d. Above 18001rs [ ]

5. Education Qualification:
a. Illiterate [ ]
b. Up To 12th [ ]
c. Up To UG Degree [ ]
d. Up To PG Degree [ ]

6. How Do You Come To Know About The Organization:

96
a. Friend [ ]
b. Relative [ ]
c. Neighbour [ ]
d. Others[ ]

7. How Long You Work In This Organization:

a. Below Two Years [ ]
b. Two Years To Four Years [ ]
c. Four Year To Six Years [ ]
d. Above Six Years [ ]

8. What Motivated You To Take Up Job:

a. Salary [ ]
b. Native Of Job [ ]
c. Reputation [ ]

ORGANISATIONAL DETAILS:

9. Are you satisfied with your salary package?

a. Yes[ ]
b. No[ ]
c. No comments[ ]

10. Are you satisfied with your job?

a. Yes[ ]
b. No[ ]
c. No comments[ ]

11. Are you happy with working environment in GAIL?

a. Yes [ ]
b. No[ ]
c. No comments[ ]

12. Are You Satisfied With The Working Hours:

a. Yes [ ]
b. No [ ]
c. No comments[ ]

13. Are your colleagues helpful?

97
 a. Yes [ ]
b. No [ ]
c. No comments[ ]

14. Is there any partiality with employees?

a. Yes[ ]
b. No [ ]
c. No comments[ ]

15. Do You Feel That The Company Provides Career Enhancement Opportunities For Your
Growth And Development:
a. Yes [ ]
b. No [ ]

16. Do You Have An Opportunity To Share Your Ideas At Work:

a. Yes [ ]
b. No [ ]
c. No comments[ ]

17. Are you Satisfied with Training Programs provided by the company :
a. Yes [ ]
b. No [ ]
c. No comments[ ]

18. Problems Faced By Them:

Variables SA A DA SDA
Rewards system

Statutory benefit
Benefits
Welfare measures
Incentives
Motivation Of Employees through
retention strategies
\

SA- Strongly Agree A-Agree DA-Disagree SDA-Strongly Disagree

Thank you

98