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Green Marketing in Oil Industry

VIDYASAGAR UNIVERSITY

Report Submitted by

Name: Lokesh Kulthia

Roll No: VU/MBA-I/170123

Institute: Bengal Institute of Business Studies

Registration No.: 00720 of 2017-2018

Company Name: National Stock Exchange

Industry Mentor: Mr. Avik Gupta

College Mentor: Mr. Abir Ghosh & Mr. Bikash Kr Saha

This Project Is Submitted for The Partial Fulfilment of Masters of Business Administration
from Vidyasagar University
TABLE OF CONTENTS

❖ PREFACE 4

❖ CERTIFICATE OF COMPANY 5

❖ ACKNOWLEDGEMENT 6

❖ DECLARATION 7

❖ COMPANY PROFILE: NATIONAL STOCK EXCHANGE 8

❖ INTRODUCTION 14

❖ THE IMPORTANCE OF GREEN ACCOUNTING AND WHY IT MATTERS? 15

❖ OBJECTIVES 17

❖ WHAT IS GREEN MARKETING 18

❖ TOP 10 GREEN COMPANIES IN INDIA 24

❖ OIL AND NATURAL GAS COMPANY (ONGC) 26

❖ OIL INDIA LIMITED (OIL) 35

❖ GAIL INDIA LIMITED (GAIL) 39

❖ INDIAN OIL CORPORATION LIMITED (INDIAN OIL) 45

❖ HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL) 50

❖ BHARAT PETROLEUM CORPORATION LIMITED (BPCL) 54

❖ CHENNAI PETROLEUM CORPORATION LIMITED (CPCL) 57

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❖ NUMALIGARH REFINERY LIMITED (NRL) 59

❖ MANGALORE REFINERY & PETROCHEMICALS LIMITED (MRPL) 63

❖ BHARAT OMAN REFINERIES LTD (BORL) 66

❖ BALMER LAWRIE & CO LTD (BALMER LAWRIE) 67

❖ LITERATURE REVIEW 69

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Preface

As a part of MBA Curriculum and to gain practical knowledge in the field of management,
we need to have a practical exposure and this report gives us the preview on the concepts of
Green Marketing.
This project report attempts to bring under one cover the entire hard work and dedication put
in by me in the completion of the project work on Green Marketing in Oil Industry.

I have experienced my experience in my own simple way. I hope whoever goes through it
will find it interesting and worth reading. Through this project we come to know about the
importance of team work and role of devotion towards the work. All constructive feedback
is cordially invited.

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Certificate of Company

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Acknowledgement

Regarding my Summer Project with NSE. I would like to thank everyone who offered help,
guideline and support whenever required.

First and foremost, I would like to express my gratitude to Mr. Avik Gupta for his support
and guidance in the Project work.

I extend my sincere gratitude to the following person in National Stock Exchange, Rashbe-
hari where I completed my research work.

I am extremely grateful to my college guide Mr. Abir Ghosh and Mr. Bikash Kr Saha for
their valuable guidance and timely suggestions. I would like to thank all faculty members of
Bengal Institute of Business Studies for their valuable guidance.

I would also like to extend my thanks to my team members and friends for their support.
And lastly, I would like to express my gratitude to the Lord Almighty for seeing me through
it all.

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Declaration

I hereby declare that the project work entitled “Green Marketing in Oil Industry”
submitted to Bengal Institute of Business Studies, Kolkata, and is a representation of
my work completed under the guidance of Mr. Abir Ghosh and Mr. Bikash Kr Saha.

Prepared By: Lokesh Kulthia

Batch: 2017-2019

Bengal Institute of Business Studies

This is to certify that this report is submitted in partial fulfilment of the requirements of MBA
Program of Bengal Institute of Business Studies, Kolkata.

This report documented titled “Green Marketing in Oil Industry” has been carried out by
Lokesh Kulthia as part of the project at NSE, Kolkata, during the internship program of 8
weeks under the guidance of ______

No project on the same lines has been submitted prior to any other college or institution.

Signature of the Professor Signature of the Student

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Company Profile: National Stock Exchange

National Stock Exchange of India (NSE) has been defining the future of the Indian financial
market since inception and is today one of the largest stock exchanges globally.

NSE was set up by leading institutions to provide a modern, fully automated screen-based
trading system with national reach. NSE is regarded as the benchmark for its best practices
and a model for the securities industry in terms of systems, practices and procedures.

Having started its operations in June 1994, NSE operates a nation-wide, electronic market,
connecting investors in search of growth to the corporate issuers in search of capital, by
providing innovative trading technologies and products.

The investor community gets easy access to liquidity and markets through a network of more
than 200,000+ NSE terminals across 600 districts through more than 34000+ NSE member
branches. In addition, investors can also access the NSE platform through internet and mo-
bile applications. NSE has also introduced services like DMA, FIX capabilities and co-loca-
tion facilities for more evolved categories of investors.

NSE is committed to operate a market ecosystem which is transparent and efficient; and at
the same time offers high levels of safety, integrity and corporate governance, providing
ever- growing trading & investment opportunities for investors.

The NSE Purpose

Committed to improve the financial well-being of people.

The NSE Vision

To continue to be a leader, establish global presence, facilitate the financial well-being of


people.

NSE Values

NSE is committed to the following core values:

• Integrity
• Customer focused culture
• Trust, respect and care for the individual

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• Passion for excellence
• Teamwork

Products and Services

The National Stock Exchange of India Limited (NSE) provides an integrated trading and
clearing platform for the
primary and secondary
markets. NSE intro-
duced the concept of an
electronic trading plat-
form that has been oper-
ational since 1994.
Since then NSE has
been at the forefront of
technological advance-
ment in the trading plat-
form within the regula-
tory framework pre-
scribed by the Securities
Exchange Board of In-
dia (SEBI).

Trading System

The NSE trading system called 'National Exchange for Automated Trading' (NEAT) is
a state-of the-art, fully automated, screen-based trading system which adopts the princi-
ple of an order driven market. It facilitates an automated online system providing a
nationwide anonymous, order-driven, screen-based trading platform. In addition to the
NEAT system, NSE has provided a web-based system, NOW (NEAT on Web) that allows
its users to trade in all the products being offered by NSE.

For the more sophisticated traders, NSE has also pioneered the co-location facility that al-
lows traders to put up their algorithms on rented servers placed inside the exchange premises.
Financial Information Exchange (FIX Protocol), the Industry-Standard Messaging Protocol
for Equity, Derivatives and Currency markets is achieved through NSE’s own connectivity

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software, TAP (Trading Access Point). NSE started trading in the equities segment (Capital
Market) on November 3, 1994 and within a short span of one year became the largest ex-
change in India in terms of volumes transacted. Trading volumes in the equity segment have
grown rapidly with the average daily turnover increasing from `17 Crores during 1994-95 to
`11,189 Crores (USD

2.03 billion) as on March 2013.

According to WFE statistics for the year ended 2012, NSE is the largest exchange in
terms of number of trades in equity shares globally.

Technology

NSE is always switched on for business. The NSE network is the largest private wide area
network in the country and the first extended C- Band VSAT network in the world. The
unique IP-based solution woven around Points of Presence (PoP) in major Indian cities has
de-risked the system and made it possible to create alternative layers of support to facilitate
interruption-free trading.

NSE trading engines are benchmarked to manage throughput at sub millisecond response
time. The Member Friendly Direct Market Access (DMA) and Algorithmic (ALGO)
trading facilitates the ALGO markets through narrow spreads, efficient trades, liquid mar-
kets and growing throughput.

NSE provides diverse baskets


of market data for the Order
Book, Bid and Ask every sec-
ond. The Collocation (Colo)
Services of NSE provide
same latency to the matching
engine. All the concerned par-
ticipants receive the same
bandwidth, two power sup-
plies with a UPS generator
and air-conditioning.

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Over the years, NSE has reinforced real-time surveillance by dedicated professionals, mul-
tiple smart applications and multiple models to track trading patterns and deviations in the
shortest time with the objective to protect market integrity.

The NEAT on Web (NOW) application provides specific solutions to members not owning
technical sophistication or large budgets, hence enabling members to focus on their core
business, enhance access on the move and plug into toll-free support. Access to multiple
exchanges, smart order routing, historical and real time intraday charting any many more
user-friendly tools help in efficient execution from a single access.

NSE Really Simple Syndication (RSS) feeds highlight fresh material on NSE circulars, cor-
porate information, and intermediate cum end-of-day reports.

NSE Twitter delivers to subscribers, market information displayed on the NSE profile page
every five minutes on Nifty, Junior NIFTY, Currency Derivatives, and Interest Rate Futures.

The cutting-edge technology application makes it possible for NSE to empower members to
strengthen their services, widen the investor pool and deepen the investing culture in India.

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Introduction

As the 21st Century continues to be an age of progress and prosperity, more and more em-
phasis is being laid on nature and the Environment that surrounds us. Humans have already
caused damage that is beyond repair to the Environment that surrounds them. However, rec-
ognizing the importance that the Environment plays in our survival and careful assessment
of the damages and repercussions that the world would have to face in the long run, is leading
more and more organizations, government and associations to recognize not just the need to
protect the environment but also to create awareness among the masses about the importance
of the Environment.

Just as Environmental awareness today is growing at a pace like no other; so is the need to
account for the well-being of the Environment. Corporates and Businesses alike are under-
standing and formulating steps to promote green and environment-friendly causes for the
present and the future.

Among various other steps that are being taken in this regard is a new branch of accounting
called “Environmental accounting or green accounting”. It is also called resource ac-
counting or integrated accounting.

The term Environmental accounting was used for the first time in the year 1980s by Professor
Peter Wood.

Environmental accounting or green accounting is a new branch of accounting that aims at


accounting for the Environment and its well-being. Although it is a completely new
field/branch of study and practice; it’s soon gaining relevance because of its importance. In
addition to merely checking a Company’s profit or loss or its revenue and expenses environ-
mental or green accounting is a growing field that focuses or provides for accounting the
environmental impact, certain factors may cause to a business or organization.

The adoption of Green accounting depicts the commitment an enterprise/organization has


towards the environment. It deals with 3 most important factors people, profitability and the
planet and deals with the costs and the advantages or benefits an environment brings to a
business concern.

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The Importance of Green accounting and why it matters?

Changes in the environment have a negative bearing on not just the Environment but on the
economy. And, it is a well-
known fact that changes in the
economy have a direct bearing
on the changes in any business. It
is also important to note that the
Gross domestic product of a
country can be affected by the
environmental and climatic
change. In addition to this
as people become more
aware and conscious of
Environmental issues, the need for sufficient and appropriate corporate disclosures is grow-
ing even more.

Steps that are already being taken in this regard (India):

Understanding the need for Companies to become morally and socially responsible, the Gov-
ernment of India through the new Companies Act of 2013, made Corporate Social Respon-
sibility (CSR) mandatory for Companies who fall within any of the 3 categories mentioned
below:

• Companies having Net Worth of ₹500 crore


• Companies having Turnover of ₹1000 crore, or
• Companies having Net Profit of ₹5 crore

Every such company that falls in any of the category mentioned above should spend at least
2% of its average net profits of the last 3 years on CSR activities and must disclose in its
Board/Directors’ Report its list of CSR activities annually.
In addition to these Companies in India also should disclose relating to Conservation of
Energy, Technology Absorption and Foreign Exchange Earnings and Outgo.

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Although these are few key steps that are being taken, they are insufficient to meet the ever-
increasing needs of environmental conservation and protection of businesses.

Steps being taken in other countries:

Developed countries like Germany, U.S, U.K, Spain and France have recognized the need
for conservation of energy. Recognizing that the path to a sustainable and healthy future lies
in adopting green accounting practices countries like Australia have established the Austral-
ian Institute of Environmental accounting that offers vocational courses in sustainability,
Carbon & Energy and Environmental Management.
In the U.K several regulations have been passed to complement a company’s efforts regard-
ing CSR. The Companies Act compels Directors’ to provide information in their annual re-
port on risks, the environment they work in etc. In France laws and regulations affecting
CSR must be strictly complied with by Companies. Also, the French Ministry of Sustainable
development oversees publishing the environmental economic accounts every year.

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Objectives
• To Understand the Concept of Green Marketing.
• To Understand the Concept of Green Audit.
• To Understand the Concept of Environmental Accounting.
• To Understand the measures taken by different companies in the Oil Industry.
• To a deeper insight into the company’s move towards a greener tomorrow.
• To know about the different means by which companies are contributing towards
the environment.

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What is Green Marketing

Environmentally-responsible or "green" marketing is a business practice that considers con-


sumer concerns about promoting preservation and conservation of the natural environment.
Green marketing campaigns highlight the superior environmental protection characteristics
of a company's products and services. The sorts of characteristics usually highlighted include
such things as reduced waste in packaging, increased energy efficiency of the product in use,
reduced use of chemicals in farming, or decreased release of toxic emissions and other pol-
lutants in production.

Marketers have responded to growing consumer demand for environment-friendly products


in several ways, each of which is a component of green marketing. These include:

1) Promoting the environmental attributes of products;


2) Introducing new products specifically for those concerned with energy efficiency,
waste reduction, sustainability, and climate control, and
3) Redesigning existing products with an eye towards these same consumers. Marketing
campaigns touting the environmental ethics of companies and the environmental ad-
vantages of their products are on the rise.

Most observers agree that some businesses engage in green marketing solely because such
an emphasis will enable them to make a profit. Other businesses, however, conduct their
operations in an environmentally-sensitive fashion because their owners and managers feel
a responsibility to preserve the integrity of the natural environment even as they satisfy con-
sumer needs and desires. Indeed, true green marketing emphasizes environmental steward-
ship. Green or environmental marketing may be defined as any marketing activity that rec-
ognizes environmental stewardship as a fundamental business development responsibility
and business growth responsibility. This expands, to some extent, the traditional understand-
ing of a business's responsibilities and goals.

Reactions to "Green Consumerism"

Several factors have caused business firms in some industries to incorporate an environmen-
tal ethic into their operations. The principal factor, of course, is the growing public awareness

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of the environmental degradation that has resulted as a consequence of the growth in popu-
lation and natural resource consumption throughout the world during the last 50 years. The
issue is particularly relevant in America, which accounts for fully one quarter of world con-
sumption despite having only a small fraction of the world's population. This growing public
awareness of environmental issues has brought with it a corresponding change in the buying
decisions of a significant segment of American consumers. Many consumers, and not just
the most environmentally conscious, have begun in recent years to incorporate environmen-
tal concerns in their personal buying decisions through the purchase and use of products and
services perceived to be more environmentally friendly. In some cases, changes in commod-
ity availability have been the motivation behind such shifts in purchasing patterns. For ex-
ample, the gas price increases seen in 2004 and 2005 caused a sharp decline in sales of sport
utility vehicles (SUVs) in favour of hybrid and other flexible-fuel vehicles.

Businesses took heed of this growth in "green consumerism," and new marketing campaigns
were devised to reflect this new strain of thought among consumers. Companies with product
lines that were created in an environmentally friendly fashion (i.e., with recycled products,
comparatively low pollutant emissions, and so on) quickly learned to shape their marketing
message to highlight such efforts and to reach those customers most likely to appreciate
those efforts (an advertisement highlighting a company's recycling efforts, for instance, is
more likely to appear in an outdoor/nature magazine than a general interest periodical).

Ironically, the most environmentally aware consumers are also the ones most likely to view
green claims of companies with scepticism. The attempt to portray oneself as "green" may
fall flat if they are perceived to be false advertising, particularly among those most educated
about environmental issues. Corporate reputation, then, has emerged as a tremendously im-
portant factor in reaching and keeping these consumers. A company that touts its sponsorship
of an outdoor-oriented event or utilizes nature scenery in its advertising, but also engages in
practices harmful to the environment, is unlikely to gain a significant portion of the green
consumer market. Of course, such tactics are sometimes effective in reaching less informed
sectors of the marketplace.

Green Products

In their book The Green Consumer, John Elkington, Julia Hailes, and John Makower dis-
cussed several characteristics that a product must have to be regarded as a "Green" product.
They contended that a green product should not:
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• Endanger the health of people or animals
• Damage the environment at any stage of its life, including manufacture, use, and
disposal
• Consume a disproportionate amount of energy and other resources during manufac-
ture, use, or disposal
• Cause unnecessary waste, either as a result of excessive packaging or a short useful
life
• Involve the unnecessary use of or cruelty to animals
• Use materials derived from threatened species or environments

J. Stephen Shi and Jane M. Kane, meanwhile, noted in Business Horizons that the consulting
firm FIND/SVP also judged a product's friendliness to the environment by ultimately simple
measurements: "FIND/SVP considers a product to be 'green' if it runs cleaner, works better,
or saves money and energy through an efficiency. Businesses practice being green when they
voluntarily recycle and attempt to reduce waste in their daily operations. Practicing green is
inherently proactive; it means finding ways to reduce waste and otherwise be more environ-
mentally responsible, before being forced to do so through government regulations. Green
promotion, however, requires businesses to be honest with consumers and not mislead them
by over promising."

Life Cycle Analysis

Most analysts agree that the "Life" of the product and its parts is one of the most important
components in determining whether a product is "Green" or not. Most people think only of
the process of creating a product when gauging whether a product is green, but, products
impact on the environment at several additional stages of their useful lives. Life cycle anal-
ysis (LCA) and/or product line analysis (PLA) studies measure the cumulative environmen-
tal impact of products over their entire life cycle—from extraction of the resources used to
create the product to all aspects of production (refining, manufacturing, and transportation)
to its use and ultimate disposal. These studies are sometimes referred to as "cradle to grave"
studies. Since such studies track resource use, energy requirements, and waste generation to
provide comparative benchmarks, both manufacturers and consumers can select products
that have the least impact upon the natural environment. Some detractors of LCA studies,

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though—while granting that they do provide useful information—contend that they are sub-
jective in setting analysis boundaries and claim that it is difficult to compare the environ-
mental impact of disparate products.

Green Promotion

Perhaps no area of green marketing has received as much attention as promotion. In fact,
green advertising claims grew so rapidly during the late 1980s that the Federal Trade Com-
mission (FTC) issued guidelines to help reduce consumer confusion and prevent the false or
misleading use of terms such as "recyclable," "degradable," and "environmentally friendly"
in environmental advertising. Since that time, the FTC has continued to offer general guide-
lines for companies wishing to make environmental claims as part of their promotional ef-
forts:

Qualifications and disclosures should be sufficiently clear and prominent to prevent decep-
tion.

Environmental claims should make clear whether they apply to the product, the package, or
a component of either. Claims need to be qualified regarding minor, incidental components
of the product or package.

Environmental claims should not overstate the environmental attribute or benefit. Marketers
should avoid implying a significant environmental benefit where the benefit is, in fact, neg-
ligible.

A claim comparing the environmental attributes of one product with those of another product
should make the basis for the comparison sufficiently clear and should be substantiated.

The FTC regulations apply to all aspects and forms of marketing, including labelling, adver-
tising, and promotional materials. "When a business makes any environmental claim, it must
be able to support that claim with reliable scientific evidence," summarized Shi and Kane.
"A corporation trumpeting an environmental benefit that it is unable to substantiate is tread-
ing on thin ice and leaving itself open to substantial penalties if a legal suit is brought against
the company."

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In addition to delineating marketing claims that might be regarded as false or misleading, the
FTC also provides guidance to businesses on how to make specific claims about environ-
mentally-friendly aspects of their operation, in part by clarifying the definitions of such com-
monly used terms as "recyclable," "biodegradable," and "compostable."

"Organic" is another term commonly used in marketing. Its popularity has grown with the
growing demand for organic agricultural products. For a company to promote and label a
product as organic, that product must meet the strict guidelines established by the Depart-
ment of Agriculture (USDA). The guidelines for both production and labelling of organic
agricultural goods are laid out in the USDA's National Organic Program Web site located at
http://www.ams.usda.gov/nop/indexIE.htm.

The popularity of green products created a need to regulate and standardize claims about the
environmental characteristics of products. Many regulatory guidelines were issued (and re-
main in force) to accomplish this job. They are designed not only to curb businesses engaged
in misleading advertising practices, but also to clarify the regulatory environment for com-
panies and make it easier for the consumer to differentiate between products that are truly
"green" and those that are not.

Eco-Sponsoring

One avenue commonly used by companies to promote their specific ecological concerns (or
polish their overall reputations as good corporate citizens) is to affiliate themselves with
groups or projects engaged in environmental improvements. In the simplest form, firms en-
gaged in eco-sponsoring activities contribute funds directly to an environmental organization
to further the organization's objectives. Another approach is to "adopt" an environmental
cause (community recycling programs are popular), thus demonstrating the company's inter-
est in supporting environmental protection efforts. Sponsorships of educational programs,
wildlife refuges, and park or nature area clean-up efforts also communicate concern for en-
vironmental issues. Environmental organizations charge, however, that some businesses use
eco-sponsorships to hide fundamentally rapacious attitudes toward the environment.

Eco-Labelling

Another vehicle that has been used with increasing frequency in recent years to convey en-
vironmental information to consumers is "eco-labelling." Eco-labelling programs are typi-
cally voluntary, third-party expert assessments of the environmental impacts of products.

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Two firms that are involved in such third-party label verification work are Green Seal and
Energy Star.

Eco-labelling programs increase awareness of environmental issues, set high standards for
firms to work towards, and help reduce consumer uncertainty regarding a product's environ-
mental benefits. Thus far, however, the U.S. government has resisted instituting an officially-
sanctioned eco-labelling program.

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Top 10 Green Companies in India

With India making rapid progress in the field of industrialization, concerns have also been
made by various sections of environmentalists regarding the repercussions on the environ-
ment. The companies themselves are now more aware about the ways in which their factories
often affect the ecosystem and have taken a greener path to success. Here are the top ten
green companies in India which are showing the path of sustainability to others.

• Oil and Natural Gas Company: ONGC, India’s largest oil producer is all set to
change the way with the invention of green crematoriums, that would serve as a per-
fect replacement for the funeral pyres that emit so much smoke and uses up excess
oxygen.
• LG: LG India has been a pioneer is making electronic gadgets that are eco-friendly.
Recently, it has launched a LED E60 and E90 series monitor for the Indian market.
Its USP is that it consumes 40% less energy than conventional LED monitors. Also,
they hardly used halogen or mercury, trying to keep down the use of hazardous ma-
terials in their products.
• HCL: HCL is another brand that is trying to introduce eco- friendly products in the
market and it has recently launched the HCL ME 40 notebooks. These notebooks do
not use any polyvinyl chloride (PVC) material or other harmful chemicals and the
Bureau of Energy Efficiency already given it a five-star rating.
• Haier: Eco branding is a part of Haier’s new green initiative and they have launched
the Eco Life Series. They have semi-automatic and automatic refrigerators and wash-
ing machines, split and window air conditioners and a lot more.
• Samsung: Samsung India has always had a roaring range of LED TV screens and
now they have come up with eco- friendly LED backlight. They use 40% less elec-
tricity have also no harmful chemicals like mercury and lead.
• Tata Consultancy Services: TCS has a globally recognized Sustainability practice
and has already opted the Newsweek’s top World’s Greenest Company title. It also
has a global green score of 80.4% and this has mainly happened due their initiative
of creating technology for agricultural and community benefits.

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• IndusInd Bank: One of the first banks in India to discourage the use of paper for the
counterfoils in ATMs, and sending electronic messages, it has contributed a lot to-
wards saving paper and reducing deforestation.
• ITC: ITC has adopted a Low Carbon Growth Path and a Cleaner Environment Ap-
proach and has already introduced ozone treated elemental chlorine free bleaching
technology that has improved the lives of millions worldwide.
• Wipro: Wipro, has not only helped in the creation of technology that helps in saving
energy and preventing wastes, but its corporate headquarters in Pune is the eco-
friendliest building in this sector all over India.
• MRF Tyres: MRF has launched the ZSLK series and this is all about creating eco-
friendly tubeless tyres made from unique silica- based rubber and offers extra fuel
efficiency to those who drive their vehicles.

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Oil and Natural Gas Company (ONGC)

Introduction

The state-run oil and gas companies, under the aegis of Ministry of Petroleum and Natural
Gas (MoPNG) - Government of India, have accorded highest priority to environment and
sustainability which is strongly embedded in the corporate governance practices of these
companies. These companies have a mandate to emphasize on the three-bottom-line ap-
proach i.e. People, Planet and Profit to stimulate its sustainable growth.

Thus, Planet remains at the core of their working philosophy and forms the bedrock of cor-
porate growth - both in terms of profit and sustainability.

The government of India has taken multiple initiatives in this direction as part of its dedicated
strategy aimed at corporate evolution and environment sustenance. This evolutionary pro-
cess has led to the formulation of policy interventions to mitigate Green House Gas emis-
sions and address the concern of global warming.

This project aims to capture the various initiatives spearheaded by MoPNG to instil sustain-
able growth across the hydrocarbon value chain.

Key Green & Sustainability Initiatives taken for Mitigation of Carbon Emissions & Climate
Change under Oil & Gas Sector:

Bio-Fuel Policy - Ethanol Blending Programme: In July 2013, a policy decision was taken
that Oil Marketing Companies will procure ethanol only from domestic sources to achieve
the mandatory requirement of 5% ethanol blending in parts of the country where sufficient
quantity of ethanol is available. In other parts of the country, blending of ethanol may be
increased progressively depending upon the availability of ethanol to reach the 5% manda-
tory level.

To improve the availability of ethanol, the Government decided to fix the delivered price of
ethanol in the range of Rs.48.50/litre to 49.50/litre, depending upon the distance of distillery
from the depot/installation of OMCs.

About policy for purchase of Bio Diesel, it was decided that OMCs would purchase bio
diesel, meeting the prescribed BIS standard, at a uniform price, as may be decided by the

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OMCs from time to time, for blending with High Speed Diesel to the extent of 5%, at iden-
tified 20 purchase centres across the country.

OMCs have reviewed the procurement price of bio-diesel at various purchase centres and
with effect from 7th November 2014, the declared price of bio-diesel is Rs.41/litre.

The policy also allowed the direct sale of bio-diesel (B100) to all consumers by private man-
ufacturers, their authorized dealers and Joint Ventures of OMCs authorized by MoPNG.

Auto Fuel Policy: The BS-III auto fuel (MS/HSD) has been extended to all the cities of India
from 1stApril, 2010. Further, the BS-IV auto fuel was introduced in 13 identified cities on
1stApril, 2010 and is now extended to 50 more cities, with preference to most polluted cities,
subject to availability of fuel and logistics constraints. The availability of BS-IV auto fuel
will be extended to entire country by 1st April 2017 in phases.

As per Auto Fuel Vision and Policy 2025 with effect from 1st April 2015, the whole of
Northern India covering J&K, (except Leh/Kargil), Punjab, Haryana, H.P, Uttarakhand,
Delhi and the bordering districts and parts of Rajasthan and Western UP have been covered.
From 1st April 2016, all of Goa, Kerala, Karnataka, Telangana, Odisha and the UTs of
Daman & Diu, Dadra Nagar Haveli and Andaman & Nicobar Islands will be covered. Parts
of Maharashtra (Mumbai, Thane and Pune Districts) and parts of Gujarat (Surat, Valsad,
Dangs and Tapi districts) shall also be covered. The rest of the cities will be covered from
1st April 2017.

The BS-V fuel quality and emission norms will be implemented in the entire country from
2019 and BS-VI emission norms for four wheelers shall be implemented from 2023.

CNG: In the year 2007, Government of India established Petroleum & Natural Gas Regula-
tory Board (PNGRB) under the PNGRB Act 2006. Under the act, PNGRB grants the author-
ization to the entities for developing City Gas Distribution network in a specified Geograph-
ical Area (GA) of the country. CGD network supplies gas to four distinct segments viz Com-
pressed Natural Gas (CNG) predominantly used as auto-fuel and Piped Natural Gas (PNG)
used in domestic, commercial and Industrial segments. At present, only authorized CGD
entities under the PNGRB Act, 2006 can set up CNG stations in their respective

Geographical Areas. PNGRB has, so far, held 5 rounds of bidding for awarding authorization
to develop CGD networks. With these bidding rounds, there are now 58 GAs which have

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been covered under CGD network in 15 States and UTs of the country. PNGRB has planned
to commence the 6th round of CGD bidding, wherein almost all GAs in the country having
existing natural gas pipeline connectivity would be covered.

The country has 1009 CNG stations catering to approximately 23 lakh vehicles. The Gov-
ernment has placed CNG (transport) along with PNG (Domestic) on top priority in domestic
gas allocation. Presently the entire requirement of CGD entities for PNG (domestic) and
CNG (transport) is being met through domestic gas at uniform base price based on preceding
six months’ consumption data. Further, MoPNG has allowed GAIL to supply 10% additional
domestic gas to meet the daily fluctuation of PNG & CNG demand.

National Gas Hydrate Programme (NGHP)

National Gas Hydrate Programme (NGHP) is of national importance considering India’s


phenomenal growing energy demand. The programme was initiated in 1997 with a Steering
Committee and a Technical Committee of NGHP for implementing the programme.

Based on the review of seismic data by the Technical Committee, two areas in Indian waters,
one along East Coast and other on West Coast have been identified as “Model Laboratory
Areas” for further R&D work.

Directorate General of Hydrocarbons(DGH) is the coordinator of the programme. Review of


various projects under this programme is done by a Steering Committee set up by the Min-
istry of Petroleum & Natural Gas.

Based on Geo-physical, Geological and Geo-chemical data, NGHP has identified four off-
shore areas for gas hydrate coring/drilling operations. Dedicated operations were carried out
in these areas during April 2006 to August 2006 through a consortium consisting of Overseas
Drilling Limited, Fugro, McClelland Marine Geosciences, Geo-TeK Limited, Lamont,
Doherthy, Earth Observatory and scientists from numerous universities and national labora-
tories

The NGHP efforts in Indian Offshore has led to the following:

• Conducted comprehensive analyses of gas-hydrate-bearing marine sediments in both


passive continental margin and marine accretionary wedge settings;
• Discovered gas hydrate in numerous complex geologic settings and collected an un-
precedented number of gas hydrate cores (more than 2800 m from 21 sites and 39

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holes); Delineated and sampled one of the richest marine gas hydrate accumulations
yet discovered in the world (Krishna-Godavari Basin);
• Discovered one of the thickest and deepest gas hydrate occurrences yet known which
revealed gas-hydrate-bearing volcanic ash layers as deep as 600 meters below the
seafloor;
• Established the existence of a fully developed gas hydrate system in the Mahanadi
basin of the Bay of Bengal.

PAHAL

The PAHAL scheme is a Direct Benefits Transfer scheme for Liquefied Petroleum Gas
(LPG) subsidy in India. Under the scheme, LPG cylinders are sold at market rates and con-
sumers receive a subsidy from the Union Government directly into their bank accounts. It
replaced the previous system of selling subsidised LPG cylinders directly to consumers.

It is the largest cash transfer programme in the world. The Guinness Book of World Records
acknowledged the PAHAL scheme as the world's largest cash transfer programme on August
13, 2015.

The Direct Benefit Transfer Scheme for LPG subsidy was initially launched on 1 June 2013,
and eventually covered 291 districts. However, consumers faced several issues particularly
due to the mandatory requirement that an Aadhaar linked bank account was needed to avail
the subsidy. After reviewing issues faced by consumers with the scheme, the Government
relaunched the modified scheme named PAHAL on 15 November 2014 in 54 districts. The
scheme was extended nationwide on 1 January 2015.

By 1 March 2015, 75% of the total LPG consumer base of 15.3 crore was enrolled under the
scheme. As of 13 August 2015, 13.9 crore LPG consumers are enrolled under the scheme.

Give It Up

Domestic LPG is heavily subsidized by the Government of India and every cylinder that is
used in kitchens carries a substantial subsidy. This translates to a huge annual subsidy burden
on the Government, draining precious resources which otherwise could have been used in
developmental activities. Subsidy on domestic LPG instead of being universal needs to meet
the needs of the truly needy citizens.

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Fortunately, many able and aware citizens are not in favour of subsidies and would rather
pay the full price for the products and, thereby they also make a personal contribution to-
wards nation-building. There is a need to spread this message. Accordingly, the Government
has launched the ‘#GiveItUp’ campaign which is aimed at motivating LPG users who can
afford to pay the market price for LPG to voluntarily surrender their LPG subsidy.

Other Steps taken to mitigate pollution:

Downstream companies like Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd
and Hindustan Petroleum Corporation Ltd, Chennai Petroleum Limited (CPCL), Mangalore
Refinery and Petrochemicals Ltd. (MRPL), Numaligarh, Refinery Ltd. (NRL), etc. are pro-
gressively using solar energy for lighting their retail outlets. So far, 2140 of their retail outlets
have been powered by solar energy. The target is to increase the number to 7200 retail outlets
by 31st March 2017. The expenditure incurred on solarisation of one retail outlet ranges from
INR 10 lakh to INR 25 lakh. These companies are also developing a model to provide soft
loans to dealers to fund this investment.

All refineries are certified for Environmental Management System conforming to ISO-14001
standard and are audited periodically for compliance. Further, all refineries in the country
fully comply with the statutory stipulations mandated for refining sector in the following
Environmental Legislation, Pollution Control Acts and Notifications issued by the Central
Pollution Control Board and the respective State Pollution Control Boards including the fol-
lowing:

• The Water (Prevention & Control of Pollution) Act 1974


• The Water (Prevention & Control of Pollution) Cess Act 1977
• The Air (Prevention & Control of Pollution) Act 1981
• The Environment (Protection) Act 1986
• The Hazardous Waste (Management & Handling) Act 1989
• The Manufacture, Storage and Import of Hazardous Chemicals Rules 1989
• The Bio-medical Waste (Management & Handling) Rules 2000.
• The Noise Pollution (Regulation & Control) Rules 2000.

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Measures taken by refineries to mitigate pollution and minimize impact on the environment:

• Waste Water Control: Waste water reduction mechanisms are in place such as re-
duction in generation of waste water through diversion of phenolic streams into de-
salter injection for reduction of phenol in waste water, use of stripped sour water as
desalter injection water. Other practices for waste water control are diversion of
pump gland cooling water from oily water sewer to cooling water system, controlled
and regulated draining of water from crude and product tanks, closed blowdown for
recovery of oil, segregated treatment of specific streams through stripping of sour
water streams and removal of sulphides, and treatment of spent caustic stream with
coagulants for sulphides removal.
• Water Conservation: The treated effluents are reused/recycled for various purposes
in refineries like fire water and cooling water make up, coke cutting delayed cookers
and for captive irrigation in green belts and eco parks.
• Gaseous Emission Control: Various emission control practices are in place such as
use of low sulphur fuel oil/natural gas in process furnaces and gas turbines, Desul-
phurization of refinery fuel gas, Tall heater stacks for better dispersion of flue gases
etc.
• Solid Waste Management: Refineries adopt the principle of “prevent, reduce, reuse
and recover” for solid waste management. Oily sludge generated in crude/product
tanks, chemical sludge, bio-sludge and spent catalysts are the main solid wastes gen-
erated in refinery units.
• Control of noise pollution: Major sources of noise pollution are engines, compressor
house, turbine hall, furnace etc. The refineries have adopted various measures such
as regular maintenance of machines, use of low noise machines, suitably designed
enclosures for both source and receiver, use of sound absorbing material, use of ear
plugs, earmuffs etc. in identified high noise areas.

Measures taken by upstream companies:

• Natural Gas generates 40% less CO2 as compared to coal, and about 30% less to
heavy oil. Hence there has been greater impetus to use of natural gas as a cleaner fuel
in transportation and industry, apart from domestic cooking etc. In the upstream sec-
tor, wastage of gas takes place primarily due to (a) gas flared during the production

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testing in a well; and (b) technical flaring of gas done in oil and gas processing plants.
There has been steady decline in natural gas flaring since base year 1990-91.
• With diligence and adoption of corrective measures, extent of gas flaring has consid-
erably come down, with 872 million cubic meters of gas per annum flared during
2014-15, as against around 5,130 million cubic meters during 1990-91, marking a
decline of about 83% in gas flaring. During this period, gas production has increased
from around 17,998 million cubic meters during 1990-1991 to 33,656 million cubic
meters during 2014-15, an increase of 187%.
• For minimizing wastage in gas transmission networks, operational parameters of gas
network for major global natural gas companies have been studied and benchmarking
has been done accordingly. At present the margin of wastage targeted is in the range
of +/-0.3%, and strict monitoring is being done.

Activities in the field of climate change:

ONGC’s journey in mitigating climate change gained momentum with the formulation of a
policy on Climate Change and Sustainability in 2007. The tenets of sustainable development
are embedded in ONGC’s long term growth strategy and the company has adopted Carbon
Management as the tool to achieve the goal. The mandate is defined and is as follows:

• Carbon foot-printing: Accounting of Green House Gases (GHG) in terms of CO2


equivalent.
• Clean Development Mechanism projects.
• Identify and develop GHG mitigation program and projects.
• Sustainable Water Management (SWM) with ‘4R’principles of ‘Reduce’, ‘Recycle’,
‘Reuse’ and ‘Replenish’.
• Sustainability reporting.

Policies in place:

• Sustainable Water Management Policy 2010


• Sustainable Development Policy 2011
• Rain Water Harvesting Policy 2009, modified 2011
• Waste Management Policy 2014

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Mitigation activities completed:

• Clean Development Mechanism (CDM): ONGC has 12 CDM projects on Gas Flare
Reduction, Waste Recovery, Green Buildings, Wind Power and Clean Power regis-
tered with UNFCCC. ONGC Tripura Power Company (OTPC) – a Natural Gas based
Combined Cycle Power Plant at Tripura is one of the world’s largest CDM project.
• Methane Emission Reduction: ONGC has entered in to an agreement with United
States Environmental Protection Agency (USEPA) in Global Methane Initiative
(GMI) program, to reduce fugitive methane emissions. Infra-Red detection (IR) cam-
era is being used for detection of natural gas leakage at all ONGC installations.
• Gas Flare Reduction: Two Gas flare reduction projects, one at Group Gathering
Station (GGS) 4 at North Kadi, Gujarat and one at GGS Chairali, Assam have been
completed
• Wind Power Project: A 102 MW wind power plant in Rajasthan, ONGC’s second
project in the area of wind power, has also been registered with the UNFCCC.
• Waste to Fuel Project: A pilot plant of capacity 100 TPD in Puri, Odisha is under
consideration which will convert the municipal solid wastes to liquid fuel/gas and
contribute to reduce the landfill methane emission. Expression of Interest process has
been completed and preparation for tender is in progress. ONGC also has long term
plans for Construction and commissioning of Gas Flare Reduction projects across all
installations of ONGC under the methane emission reduction activity.

Adaptation activities

Under the adaptation programme, following activities have been completed:

• Water footprint study for Mehsana, Tripura, Karaikal, Rajahmundry, Ankleshwar


Assets, Uran and Hazira Plants.
• Rain water harvesting projects in Ahmedabad, Tripura and Vadodara.
• Sewage treatment plant of 50 KLD capacity at Meshana Asset.

Activities in progress:

• Desalination plant at Uran: Techno-commercial and environmental feasibility study


for setting up a 20 MLD sea water desalination plant is nearing completion.

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• Rain water harvesting projects at Meshana Asset, Ankleshwar Asset, Rajahmundry
Asset, IRS Ahmedabad, Mumbai and Vadodara.
• Water foot-printing studies for Rajasthan Forward Base Jodhpur and Cachar Forward
Base, Silchar
• Produced water management at Mehsana Asset.
• Three Sewage Treatment Plants (STPs) at Meshana Asset, each of 100 KLD.

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Oil India Limited (OIL)

Various Environmental and Green/Sustainability Initiatives taken:

Air and Water Management

• Ambient air quality monitoring is done in and around OIL’s operational areas and
other vulnerable places with the help of a mobile Air Quality Monitoring Van pro-
cured by OIL
• OIL has reduced in phases the use of CFC’s/Ozone depleting substances in its all
possible applications.
• OIL continued to invest in reducing air emission levels through adoption of cleaner
technologies and investment in state-of-the-art pollution control equipment like fa-
cilities of low pressure booster compressor/jet compressors to reduce flaring of very
low pressure natural gas which has resulted in energy saving and economically viable
to the company.
• OIL has also taken up setting of a gas based power plant of capacity 5MW even at a
very remote place like Kumchai in Arunachal Pradesh to utilize gas which would
have been flared otherwise.
• OIL also tries to minimize the amount of water used by adopting recycling in all
drilling activities.
• At few satellite locations, water supply setups at Production Installations in the ex-
isting EMD Reciprocating Type source water pumps are replaced by more efficient
EMD Submersible pump sets.
• OIL has constructed a water harvesting unit at OIL’s Store complex located at Ha-
mira, Jaisalmer.
• Sorting and recycling of Process waste
• Hazardous waste like oily sludge and machine oil are disposed through registered
recyclers in accordance with the statutory guidelines.
• OIL in collaboration with TERI has implemented a hazardous waste treatment tech-
nology called bioremediation in OIL operational area. In the year 2014-15, 9180 M3
of Ex Situ and 4500 M3 of In Situ oily sludge was bio remediated

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• Drill cuttings are stored in landfills, Recycling of drilling effluent pit water in drilling
operations to contain all effluents within the well site premises and reuse of water.
• Effluent Treatment Plants (ETP)are installed in few locations. To prevent migration
of drilling effluent to outside surrounding, OIL is putting up HDPE (High Density
Poly Ethylene - Used as effluent pit lining) for Hazardous oil/waste/effluent disposal.
• The formation water produced along with crude oil is scientifically treated with oil
soluble demulsifiers, ETPs etc. to separate oil and water. The separated formation
water is disposed off into selected disposal wells specially drilled for the purpose.
The water samples from the monitoring water wells in the vicinity of the disposal
• Oil Water Separators are effectively used in all installation handling crude oil so that
the discharged water is within the recommended standard. Out most care is put by
each installation for regular testing of discharged water.
• Minimizing noise: Generator sets, compressors and rig engines are the main sources
of noise at OIL, but the environmental impact remains insignificant thanks to acoustic
enclosures and noise barriers erected around worksites and OIL’s installations. Noise
levels are also monitored continuously at these locations

Biodiversity Conservation

• The company has taken various steps to mitigate the damage to environment like
cluster & directional drilling practiced to minimise land use, no natural water course
is diverted, abandoned well plinths are reclaimed/restored and economically valuable
land, sensitive land etc are avoided as far as practicable.
• OIL adopts compensatory & social plantation drives in a massive way in its field
areas. OIL has planted about more than 2800 trees during 2014 in its operational
areas. Average survival rate is about 80%. Plant species are selected accordingly to
the land condition & requirement.

Environment Projects

• E-Waste: OIL has undertaken an initiative to carry out treatment, recycling and final
disposal of E-waste material in a safe & scientific method as per norms of Central
Pollution Control Board/ State Pollution Control Board as per policy guidelines is-
sued by GOI by an authorized dealer. Contract has been awarded. Writing of process

Green Marketing in Oil Industry 36 | P a g e


of identified e-waste is in progress and completion of the same it will be collected by
the contractor.
• Phytoremediation: This project was done by OIL in collaboration with Institute of
Advanced studies in Science & Technology, Guwahati. Selected species of plants
were planted in an oil contaminated plot of land (30m X 20m) near Jorajan OCS.
These plants degraded the hydrocarbon and heavy metal content of the contaminated
area & remediated it to normal. OIL is planning to carry out more such projects in
other areas.

Awareness Building Programmes

OIL carries out regular awareness building programmes with employees & contrac-
tors to sensitizes them on various environmental issues. In addition to this family
awareness programmes are also carried out to disseminate environmental awareness
at grassroot level.

Various awareness days like World Environment Day, World Water Day, Clean Day,
Earth Hour etc are observed in all OIL installations in collaboration with stakeholders
to stimulate awareness on global and national environmental issues.

OIL voluntarily has taken up a program with the help of an environmental activists
group of North-East for conservation of Gibbon Wildlife Sanctuary, Dibru-Saikhowa
National Park, Dihing Patkai Wildlife Sanctuary, Rain Forests in the locality includ-
ing conservation of endangered Hoolock Gibbon etc. Till now 11 Community Level
Meetings in Various Villages has been organized.

Renewable Energy

• OIL continued its commitment to renewable energy by establishing new projects in


Rajasthan.
• A 13.6 MW and a 54 MW wind energy power projects were installed and established
at Jaisalmer, Rajasthan.
• A 54 MW commercial Wind Energy Project installed at Gujarat and Madhya Pra-
desh, the project is split between a 16 MW capacity operational site at Patan in Gu-
jarat and a 38 MW capacity operational site at Chandigarh in Madhya Pradesh.
• A 5 MW Solar energy power plant was commissioned on 20th Jan 2014 at Ramgarh,
Jaisalmer in Rajasthan.

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• Apart from the above high capacity projects, a 100 KWp Solar power project at Tanot
Village Complex, Rajasthan and a100 KWp solar power project were commissioned
at Joypur OCS, Duliajan.
• Two numbers of Pipeline Repeater Stations have been converted to Solar stations
with 20KW capacity each in Jagiroad in Assam &Kishanganj in Bihar.

Audit/Accreditations:

Environment Audits are carried out in major installation of OIL and the recommen-
dations of the same are implemented for improving environment standards. A num-
ber of OIL’s installations are ISO 14001 certified to minimize their operations nega-
tive effect on the environment, comply with applicable laws, regulations, and contin-
ually improve.

Milestones achieved:

• Most of the energy consumption is in the form of natural gas, with it making up
almost 94% of OIL’s energy consumption in FY 2013-14, thus considerably reducing
its dependency on conventional fuels (petrol/diesel).
• Conservation of gas byreductionofflaringofabout73MMSCM of natural gas was
achieved by commissioning of BOO (Build-Own-Operate) compression services

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GAIL India Limited (GAIL)

Activities in the field of Climate Change

GAIL has around 11,000 Km Gas Pipelines, 2040 Km LPG Pipelines, 7 gas processing plants
of 1.4 MMTPA LPG/Liquid Hydrocarbons (LHC) capacity & gas based petrochemical plant
of 410,000 TPA polymer capacity. GAIL continues to explore opportunities globally with
focus on gas sourcing. GAIL is a pioneer in City Gas Distribution business in India with 8
JVs, notably IGL Delhi & MGL Mumbai and subsidiary GAIL Gas Ltd. Various measures
have been adopted for environment protection & its conservation. GAIL has also been
acknowledged among the CDP’s India Leaders 2014 Climate Disclosure Leadership Index
(CDLI) for the first time.

The activities undertaken by GAIL are categorized under the following:

• GHG Mitigation: GAIL has been taking actions to reduce GHG emissions and ex-
ploring new & unconventional sources of energy. GAIL has taken up voluntary sus-
tainability targets in the form of Sustainability Aspirations 2020.
• Clean Technologies: Priority to environmental considerations is given throughout
the various project phases. All plants in GAIL, Pata Complex namely the Gas Pro-
cessing unit (GPU), the Gas cracking unit, the High-density polyethylene unit and
the linear low-density polyethylene unit (HDPE and LLDPE) are state-of-the-art and
from world renowned process licensors.
• Global Methane Initiative (GMI): GAIL has signed a Memorandum of Under-
standing (MoU) with the United States Environment Protection Agency (US EPA)
to carry out studies regarding fugitive & vented Methane emissions. The study has
been taken up for Vijaipur, Hazira & Jhabua facilities by US EPA.
• Saving Fuel by Transportation by Pipelines instead of using Trucks: helps in
fuel, GHG Emissions, time and money saving. GAIL Vijaipur transports part of its
LPG through Pipeline resulting in indirect GHG savings of 136 tons of CO2/annum.
• Vapor Recovery from LPG Spheres: installed for recovering the LPG & Propane
Vapours.

Research & Development projects:

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• Landfill Gas (LFG) Pilot Project: LFG emanates from the Municipal Solid Waste
dumping yards & one of the largest sources of fugitive Methane emissions. GAIL
has set-up a Pilot project at active landfill site of 27 Hectares at Ghazipur with about
125 m3/hr of LFG to explore the option of extraction and gainful usage of LFG. The
Project has been successfully validated & registered with UNFCCC.
• Carbon Di-Oxide (CO2) Utilisation: Conversion of CO2 into value added chemi-
cals is an option for mitigation of GHG. Since CO2 is a very stable chemical, our
efforts in this area are focused towards the development of various types of catalysts
for its conversion to Syn gas through bi/tri and dry reforming. GAIL is carrying out
R&D project for fixing of CO2 using microbial algae for production of Bio-fuels.
• Green Belt Development: At GAIL, Pata, the green cover area is over 200 Hectares
with ~5 lac saplings. Development of 4 lakh sq. mts. of lawn and landscapes and
nursery within Vijaipur complex.
• Project “Dharohar” for conservation of Native plant species: In next 10 years i.e. by
2023 this project will be continued, upgraded and maintained by GAIL User to
achieve Mission 2023 for carrying out plantation of 1.0 Lakh native plant saplings.
As on date total 18000 saplings have been distributed in the surrounding.
• Leak Detection & Repair (LDAR) & Preventive Mechanical Maintenance: en-
sure to arrest fugitive emissions leads to reduction in tripping, so the venting/flaring
of natural gas is minimized.
• Closed loop Sampling: Commissioned at GAIL Vijaipur wherein cylinder assembly
shall be utilized towards Hydrocarbon sample collection mitigating any fugitive
emissions resulting from open ended LHC sampling.
• Installation of Seal Gas Recovery Skid in HVJ Compressors: Will recover the
fugitive gas emission & cycle it back to the suction of the compressor thereby elimi-
nating its discharge into atmosphere.
• Renewable Energy: GAIL has installed wind energy projects of 118MW capacity.
In the year 2011-12, GAIL entered solar power generation by winning the bid to setup
a 5MW Solar Plant under the Jawaharlal Nehru National Solar Mission in Rajasthan.
GAIL has set up portfolio of renewable businesses (solar & wind) with an investment
over INR 700 crores.
• Solar power replaces natural gas as fuel source to run Closed Circuit Vapor tur-
bines. Solar PV plants expected to generate 86400 unit (kWh)/year can save almost

Green Marketing in Oil Industry 40 | P a g e


1638 tCO2e/yr., ~0.265 MMSCM natural gas estimated saving for FY 13-14 is worth
INR 26.5 lacs with project expenditure of INR 98.30 Lacs
• Solar water heaters have been installed for domestic use at the GAIL Vijaipur town-
ship resulting in reduction of 120000 KWH annual energy consumption.

Energy Conservation

Energy conservation, energy efficiency, developing integrated energy management system


and strengthening our energy audit procedures are important operational improvement areas
for GAIL.

• Heat Recovery Steam Generation (HRSG): Recovery of waste heat from exhaust
of Gas Turbine Compressor (GTC) at Vaghodia has been carried out by setting up of
Waste HRSG (WHRSG) to supply steam to M/s. Apollo Tyres.
• Piped Natural Gas (PNG) supply from Recovered Flare/ Waste Gas for GAIL
Township: at GAIL Vijaipur resulted in reduction of GHG emissions, energy savings
and LPG.
• For Cooling of Feed Gas to GPU from low temperature RLNG going in South
Gujarat Pipeline: The feed gas temperature is a function of the compressor dis-
charge temperature & ambient condition. In summers, ambient temperature being
higher, the effectiveness of feed gas cooling decreases that resulted in loss of LHC
Recovery & energy. South Gujarat Pipeline carries RLNG from Dahej to different
customers of Gujarat. There is a pressure reduction of RLNG to meet the customer
delivery specification and for which considerable temperature reduction takes place.
The intervention utilizes the cold generated due to pressure reduction of RLNG for
cooling of feed gas supplied to GPU.
• For Retrofitting Natural Gas Fired Forced Draft Burner in place of existing
natural draft burners in Hot Oil Heater at GPU Vaghodia: Controlled combus-
tion from forced draft having proper control system, reduces NOx emission & saving
~20% fuel, control of heater lighting up with flame failure detection and associated
safety interlocks to reduce the operating hazard.
• Green Building: GAIL Jubilee Tower, compliant to LEED Green Building norms.
Captive power generation plant is using gas engine generators, Waste heat recovered
to run the Air Conditioning system and 30 KW solar power plant, sewage treatment
plant, rainwater harvesting system are present and has zero water discharge. Fly ash

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bricks and environment friendly cement, wood and paint materials used. GAIL’s Ad-
ministrative Office at Chainsa – the Green building has been designed to use energy
optimally with integration of solar power.

Water Management

GAIL acknowledges that water is one of the most important resources and ensures effective
management of water resources in areas of operation. Socially useful programmes have been
undertaken under a well-defined CSR policy.

• At Vaghodia, new water recycling initiative has been taken up. This required utiliza-
tion of blow down water of HRSG for horticulture. After commissioning of HRSG,
in total 15-20MT per day of blow down water is generated.
• Watershed management and Behti Dhara-Piped Canal project at Vijaipur, capacity
enhancement of water harvesting reservoir at Gandhar, zero rainwater discharge at
Samakhiali, Rainwater harvesting at RT- Loni and RT- Madanpur (NCR), and devel-
opment of water management system at IPS Mansarampura and Samakhiali under-
taken.
• Waste Water Treatment Plant has been set up at Pata, to maintain the river water
quality at the discharge point. The treated wastewater recycled and used for horticul-
ture and firewater makeup. Water demand of the complex is met by surface water,
thereby reducing/eliminating the use of precious groundwater. The pipeline laid for
water supply to the township from our raw water treatment plant for supply of drink-
ing water to residents has resulted in stopping use of ground water.
• Membrane Bio Reactor (MBR) based Sewage Treatment Plant has been set up in the
GAIL Gaon Township, ensures odourless & clean environment, improved quality of
treated water, entire effluent is useable and zero wastage of sewage water. In addition,
Zero Liquid Discharge at GAIL Pata proposal initiated to implement RO treatment
plant for water recycling.

Goals and Objectives sought to be achieved

GAIL has set strategic initiatives for strengthening its portfolio of renewable businesses.
GAIL plans to set up 500 MW wind power capacity in the coming years. GAIL has been
among the very few companies to have set voluntary targets through Sustainability Aspira-
tions 2020 and transparently disclose in the public domain.

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• Reduction in GHG Emissions intensity (Scope I and II): A target reduction of 33%
in GHG Emission intensity (Total GHG emissions / Gross sales) from the base of
2010-11.
• Energy Efficiency: A target reduction of 5%in specific energy consumption (petro-
chemical and Liquid Hydrocarbon segment products)
• Water Consumption & Waste Water Recycled: A target reduction of 45% in water
consumption intensity (Total water consumption / Gross sales) from the base of 2010-
11 and increase in waste water recycling by 5%of waste water generated
• Training/Awareness on Sustainability: A target of 100% of our employees and all
new joiners to be made aware within one year of their joining.

Progress made so far

• GMI: Vijaipur site generated standard emissions to the tune of 8.95 million m3/ year
of Methane (CH4). Action plan towards reduction of the same based on recommen-
dations such as Directed Inspection & Maintenance (DI&M) & Flare Gas recovery
for PNG supply to township were adopted. Fugitive Emissions were quantified at
0.52 million m3/year of which leaks to the tune of (0.51 million) 518731.47 C1 m3/
year.
• PNG supply from Recovered Flare/ Waste Gas for GAIL Township: resulted in GHG
emissions reduction and energy & LPG saving. The total cost is INR 2.5 Crores with
low Pressure Pipeline Network of 11 kms and Supply of recovered flare gas is ~336
SCM/ Day.
• Vapor Recovery from LPG Spheres: 5 LPG Spheres & 3 Propane Spheres inspected,
resulting in saving of ~75 MT of LPG & ~106.53 MT respectively and the estimated
value of savings on account of Propane vapour recovery is INR 51.59 lacs.
• Closed loop Sampling: resulted in savings of ~0.54 Tonnes of LPG/ Propane per
annum.
• Installation of Seal Gas Recovery Skid in HVJ Compressors: Probable/ expected sav-
ings in MMSCMD due to recovery from each skid is 1.32 MMSCM/ annum per skid
• HRSG: Brings down flue gas current temperature of 450 °C going in open atmos-
phere to about 240 °C thereby reducing thermal pollution as well as saving energy
required for the steam generation.

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• For Retrofitting Natural Gas Fired Forced Draft Burner in Place of Existing Four
Numbers Natural Draft Burners in Hot Oil Heater at GPU at Vaghodia- Automation
of burner management system in hot oil heater at LPG plant in Vaghodia at an in-
vestment of INR 85 lacs with a potential saving of 0.612 MMSCM of fuel gas per
year equivalent to INR 61 lacs.
• For Cooling of Feed Gas to GPU from low temperature RLNG going in South Guja-
rat Pipeline: This project, after commissioning reduced feed gas temperature by ~ 7-
80C saved ~5,600 MWH/annum energy with additional recovery of 1,340 MTPA of
LPG equivalents to INR 194 lacs.
• Green Belt development: The total Green belt area of total land holdings of GAIL is
~41%. The Green belt area is about 17.2 million square mtrs.
• Sustainability training is provided to 40% GAIL Employees till FY 14-15.
• Our Progress on Sustainability Aspirations 2020 (FY 14-15 data under finaliza-
tion/approval)

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Indian Oil Corporation Limited (Indian Oil)

Sustainable Development initiatives including Climate Change mitigation activities are im-
plemented in Indian Oil through short term and long-term plans. The details of Indian Oil’s
sustainability initiatives towards adaptation and mitigation of impacts of climate change are
detailed as under: -

Activities undertaken and progress achieved so far:

• Energy Conservation (ENCON) projects at Refineries: The various energy con-


servation schemes implemented during the year 2014-15 resulted in estimated fuel
savings of 1,07,000 MT Standard Refinery Fuel (SRF), valued at about INR 4billion,
as a result of which the energy performance parameter in terms of MBN (Thousand
British Thermal Unit/Barrel /Energy Factor) reduced from 62 in 2009-10 to 54.5 in
2014-15, the best ever achieved.
• Pipeline Network for fuel transport: The pipeline transport of crude and products
have resulted in more than 50% reduction in carbon emissions over rail transport.
Indian Oil’s ever expanding cross country pipeline spans over 11,221 km.
• Wind Power Projects: Indian Oil has commissioned two wind power projects, one
of 21 MW capacity at Kutch, Gujarat, and the other of 48.3 MW at Vajrakarur &
Gandikota in Andhra Pradesh. As of 31st August 2015, the cumulative generation
has crossed 569 GWh (Giga Watt Hour) which corresponds to emission reduction to
the extent of 455 TMTCO2e (thousand metric tonnes carbon dioxide equivalent).
• Grid Connected Solar Power Projects: A grid connected solar PV project of 5 MW
was commissioned at Rawra, Rajasthan in 2012. As of 31st August 2015, cumulative
generation from the project has crossed 27 GWh of renewable electricity resulting in
carbon emission reduction of 22 TMTCO2e. Further, 4 MW Solar PV plant is also
under commissioning at Narimanam, Tamil Nadu which will supply green power to
twelve captive locations in the state.
• Off-Grid Solar Projects: Solar PV power generation systems are installed at office
buildings and installations to reduce power consumption from the grid power and to
reduce diesel consumption in DG sets and resultant carbon emissions. As on 31st

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August 2015, 1.3 MW of Solar PV has been installed across various refineries, in-
stallations and office buildings with a total annual generation capacity of 1.6 GWh
and annual carbon emission reduction potential of 1.3 TMTCO2e.
• Retail Outlet Solarisation: With a view to reduce diesel use in DG Sets at Retail
Outlets/Kisan Sewa Kendras (petrol pumps/ rural petrol pumps) and reduce carbon
emissions, solar PV power generation systems are being installed since 2011. As on
31st August 2015, 3298 retail outlets/kisan Sewa Kendras have been solarised with
installed capacity of about 12 MW. These systems have an annual generation capac-
ity of 14 GWh with resultant carbon emission reduction potential of about 12
TMTCO2e.
• Solar Lanterns: To increase the penetration of solar systems and to provide solar
based solutions to problems of erratic/ no electricity in small towns, semi urban and
rural areas, they have been promoting the sale of solar lanterns through their retail
network. As on 31st August 2015, more than two lakh solar lanterns have been sold
through various marketing channels.
• Bio-diversity & Tree Plantation: Development of green belts / ecological parks
have been a significant feature of Indian Oil’s operations. All refineries have devel-
oped green cover around their operations. As on 31st August 2015, these green belts
/ ecological parks cover an area of about 800 acres with a total tree plantation of over
20 lakhs. These trees have an annual carbon sequestration potential of 40 TMTCO2e.
• Energy Audits & implementation: Energy audits of buildings and installations are
conducted to achieve energy conservation / efficiency in energy usages by imple-
menting recommended modification / updation for optimum energy utilization.
• Energy Efficient Lighting: During 2014-15, about ten thousand conventional light-
ing fixtures were replaced by LED fixtures. To increase penetration of energy effi-
cient lighting, a comprehensive policy on implementation of LED lighting across all
refineries, office buildings, townships, installations & retail outlets by 2017 has been
formulated.
• Green Buildings: Environmentally responsible and resource-efficient green features
like daylight penetration, light sensors, thermal efficiency of building envelope, en-
ergy efficient appliances, solar energy, recycling of waste and water, rainwater har-
vesting are being implemented in new buildings. The Panipat Naptha Cracker Admin

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building and Indore Divisional Office building were certified as Green buildings by
LEED and GRIHA, respectively.
• Rain Water Harvesting: To reduce the water footprint and increase ground water
availability, rain water harvesting systems are being installed across the Corporation.
As on 31st August 2015, 440 rain water harvesting systems have been installed at
various refineries, office buildings and installations with annual harvesting capacity
of about 2700 Thousand Kilo Litres (TKL) covering a combined catchment area of
950 Hectares.
• Organic Waste Converters & Bio-Methanization Plants: For organic waste like
kitchen and horticulture waste, organic waste converters / Bio-methanization plants
are being provided at installations to convert waste to manure and methane. The me-
thane is used at kitchens as fuel and the manure/slurry used for gardening and tree
belts. As on 31st August 2015, 16 such systems have been installed at various loca-
tions across the country.
• Bio-Remediation of Sludge: Oil products sludge generated from refineries and in-
stallation are being treated through Bio-remediation by a bacterium developed by
R&D centre in collaboration with TERI.
• Effluent Treatment: All refineries have been provided with full-fledged effluent
treatment plants consisting of physical, chemical, biological & tertiary treatment fa-
cilities. 83% of effluent water was treated and re-used during 2014-15.
• Ethanol Blending: Blending of ethanol with petrol reduces carbon monoxide levels
& carbon emissions and reduces the import bills. Ethanol has an emission factor of
1.88 kgCO2e/kg compared to 3.09 kgCO2e/kg for petrol. During 2014-15, 187 TKL
of ethanol was procured by Indian Oil for blending, which is about 1.7% of total MS
sales.
• Bio-Fuels Plantation: Plantation of Jatropha was completed in about 8000 Ha in the
states of Madhya Pradesh, Chhattisgarh and Uttar Pradesh. Two joint ventures were
formed for the purpose namely, Indian Oil CREDA Biofuels Ltd. in Chhattisgarh and
Indian Oil Ruchi Bio-fuels LLP in Uttar Pradesh. However, due to high maintenance
cost and low seed yield from Jatropha, the bio-fuel production was non-starter.
• Natural Gas: To reduce product carbon footprint the natural gas (LNG/ RLNG /
CNG) business is being expanded. During 2014-15, Indian Oil registered sale of 1.81
million tonne of natural gas.

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The Goals & Objectives sought to be achieved

National import reduction targets: In response to the call in Urja Sangam – 2015, for the need
of 10% reduction in energy imports, Indian Oil has planned to further improve operational
efficiency and energy conservation as well as generation of renewable energy to bridge the
gap. In alignment with the national goals including the National Action plan on Climate
Change, the following plans are being adopted: -

• Plan for Alternate Energy: Over next five years i.e. from 2015-16 to 2019-20, In-
dian Oil envisages to set up 260 MW of renewable energy (wind and solar) in a
phased manner.
• Sustainable Development Plan: Indian Oil has completed Carbon and Water foot
printing of all its installations and office buildings. Based on the same, a long-term
plan on reduction of Carbon and water footprint of the Corporation has been pre-
pared. The plan envisaged a reduction target of specific Carbon Footprint by 18%
and specific Water footprint reduction target by 20% upto 2019-20, with 2012-13 as
the base year. Various measures such as energy conservation, energy efficiency, re-
newable energy and tree plantations have been proposed to reduce carbon footprint.
To reduce water footprint, measures such as process water efficiency, rain water har-
vesting etc., have been proposed.

Activities proposed for the future

• Ligno-Cellulosic Ethanol: There is a great need of alternative fuels driven by fluc-


tuating crude prices, energy security, and environmental benefits. The National Pol-
icy of Bio-fuels in 2009, had proposed an indicative target of 20% blending of Bio-
fuels by 2017. To avoid the food vs fuel issues, bio-ethanol can be produced from
Ligno-cellulose obtained from non-food crops such as surplus Agri-residue, wood,
organic waste etc, thereby eliminating requirement of food crop diversion. It has also
been observed that Cellulosic ethanol reduces carbon emissions by 85% to 94% com-
pared to petroleum-based fuels. Indian Oil is actively considering entering Ligno-
cellulosic ethanol production.
• Lithium-Ion Batteries: The lithium ion battery is a type of rechargeable battery
which uses lithium iron phosphate (LiFePO4) as a cathode material. The batteries
offer longer lifetimes, better power density (the rate that energy can be drawn from

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them), have much better temperature tolerance and are inherently safer. With use of
cheaper and widely available Iron-Phosphate combination in cathode makes it
cheaper in production. It has been finding wide applications in transport and backup
power. Lithium ion batteries are being used in consumer electronics & automobile
industry, particularly in electric vehicles.
• Government of India had launched the New Electric Mobility Mission Plan 2020,
which projected 6-7 million electric vehicles running on Indian roads by 2020. Smart
City Projects and Green Energy Corridor for power generation from renewable
sources would add to the overall installed capacity, thereby increasing the demand
for energy storage batteries.
• Possibilities are being explored for setting up a production plant for Lithium Iron
Phosphate (LiFePO4) Battery, Quick charge stations/ retrofitting existing retail
outlets to recharge/ replace batteries packs of vehicles.
• Fuel Cells: Possibilities are being explored for production and distribution of hydro-
gen through retail networks to cater to fuel cell market, production of fuel cells in
partnership with a fuel cell producer or fuel cell based quick charging stations.
• Waste to Fuel: As a part of the Swatch Bharat Abhiyan, Indian Oil is putting up an
integrated waste to fuel plant at Varanasi to convert the municipal solid waste to fuel.

R&D Activities: Indian Oil’s R&D Centre at Faridabad is working on many innovative low
carbon technologies. A single step process has been developed and patented to convert CO
to dialkyl- 2 carbonates using novel catalyst for application as fuel additives as well as sol-
vent in paint industry. Research is also underway on Polymer Electrolyte Membrane (PEM)
fuel cell stacks, pet-coke integrated gasification plant, solar grade heat transfer fluids, en-
zymes & microalgae in bio-energy etc.

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Hindustan Petroleum Corporation Limited (HPCL)

HPCL has been committed toward Environmental protection, Climate change and carrying
out business in responsible way. The Corporation’s Vision and Mission statement highlight
its commitment, focus and approach towards Sustainable development. There is a dedicated
policy on Sustainable development with a clear focus on achieving the economic, ecological
and social objectives of Sustainable development consistently through varied operation and
activities.

Activities undertaken and progress achieved

HPCL has been working in various areas of Sustainable development. Few initiatives are as
below:

• Energy Conservation Projects: Energy Conservation measures developed, under-


taken and implemented by HPCL during the years from 2008-09 to 2014-15 have
reduced 192,300 Tonnes of Fuel consumption. The equivalent estimated CO2 emis-
sions are in the range of 576,900 Tonnes. Comprehensive energy & power quality
audit Conducted for 3 major terminals. Strict monitoring of Specific energy across
locations achieved thru’ sustained awareness building. Implemented Electricity con-
sumption reduction initiatives at Marketing locations like VFD and LED lighting.
• R&D Centre: HPCL has setup a green R&D Centre in Bengaluru which will focus
on developing competitive, energy-efficient and eco-friendly technologies. Various
in-house and Collaborative R&D projects are undertaken in developing environmen-
tal friendly technologies.
• Carbon Footprint Assessment: HPCL has been evaluating its carbon footprints at
refining and marketing locations on annual basis. The carbon footprint assessment
has been completed for both refineries and 92 Marketing locations.
• Green Belt Development: HPCL has been maintaining and developing its Green
cover at refineries and marketing locations. Various Greenbelt Development Pro-
grams have been conducted at different marketing locations during 2014-15 and pre-
vious years. Currently a total of 99 acres area (approx.) is under green belt in Refin-
eries and Marketing.

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• Renewable Energy: HPCL has undertaken Wind Farm projects in the States of Ra-
jasthan and Maharashtra and installed a total of 50.5 MW wind energy generation
capacity. A total of 545 lakh KWH energy was generated through Wind Power Plants
during year 2014-15. Solar energy systems are installed at Refineries and Marketing
locations including retail outlets with a cumulative capacity of 250 KWp. Approxi-
mately 2 lakh KWH of solar energy has been utilized during 2014-15.
• Water Conservation Initiatives: Various water saving measures are being put into
place for efficient utilization of water. Rain water harvesting systems have also been
implemented at Mumbai & Visakh refineries and 61 marketing locations.

Environment Management:

• HPCL has implemented “Green Fuels” project in its Refineries to produce Euro
III/EURO IV petrol, in line with the Auto Fuel Policy of GOI to implement Euro III
and Euro IV norms for fuel quality.
• Implementation of Flue Gas Desulphurization Units in FCCU-I/FCCU-II and Tail
Gas Treatment Units in SRUs towards reduction in SPM and SO2 emissions.
• Continuous Ambient Air Stations are being upgraded with new continuous monitor-
ing facilities.
o For identifying and controlling fugitive emission, Leak Detection and & Re-
pair (LDAR) survey completed in both refineries.
o HPCL refineries and marketing locations have installed state-of-the-art efflu-
ent treatment plants that have facilitated recycling and reuse of waste water
thereby reducing the extent of freshwater required.
o Sustained compliance ensured with the "Hazardous Wastes Management&
Handling Rules”, in handling of spent catalysts/old chemicals/discarded
chemicals/Paint and oil sludge/insulation waste etc, being disposed to the reg-
istered “Common Hazardous Wastes Treatment Storage Disposal Facility"
(TSDF) as well as to the SPCB/CPCB approved Recyclers.
o Bioremediation of oil sludge is being done at refineries using oil zapper tech-
nology. Also, Phyto-remediation (Constructed wet-lands) method which is a
natural way to treat sewage water by select plant species and requires no
chemicals or electrical energy being implemented at select terminals and mar-
keting locations? This way the treated water can be reused.

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o HPCL Refineries carry out ‘Groundwater monitoring’. Both refineries loca-
tions test bore well water samples regularly for assessing the ground water
quality.
• Infrastructure: Transportation (by Road and Rail) of raw material/products in their
business is considered as one of the major activity resulting in emissions. To reduce
the emissions, various supply chain initiatives have been implemented along with
identifying newer ways of transportation. Pipeline transfers is considered cleanest
way to transport products in the business. Corporation has been investing in devel-
oping its pipeline infrastructure with a current total pipeline length (in Kms) of 2514.
• Green building is another area in infrastructure to reduce the environmental impact
and increase resource efficiency of building. Various buildings in HPCL have quali-
fied as Green building and constant efforts are being put up into making existing
buildings into Green building.

Activities proposed for the future:

• Renewable Energy: 50MW Wind Energy projects are under implementation stage.
Solarisation of all retail outlets in 2015-16 is being targeted. Also, a Solar Power
Project of 258 KWp for captive use at HPCL Ennore Terminal, Chennai is underway.
Additional capacity of solar energy is planned to be added at Marketing locations in
the current year.
• Green Development Program: Various green development initiatives are in process
and proposed to enhance the green cover at marketing locations. It is proposed to
carry out tree plantation in a scientific way to achieve maximum carbon sequestra-
tion. While designing green belt, minimum water consumption and planting local
species are kept into consideration. The carbon sequestration potential is identified
for a 5, 10 and 20 years based on select species of trees. Pilot studies have been done
at few locations for scientific tree plantation and various locations have been identi-
fied for implementation in current and future years.
• Water Recycling: Phyto-Remediation (Constructed wet-lands) is a natural way to
treat sewage water by select plant species and requires no chemicals or electrical
energy. The treated water can be reused. Phyto-remediation technology (constructed
Wetlands) has been implemented on pilot basis to treat sewage water at 2 marketing
locations. Few marketing locations and refinery have been identified to implement

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this methodology in the current year. The implementation will help us in increasing
the recycling of water and thus the reducing fresh water intake.
• Green CO Rating: This is an environmental indexing methodology to assess a fa-
cility’s performance on Sustainability parameters like Energy Efficiency, Water
Management, Waste management, Renewable energy, Material conservation, GHG
assessment and Green supply chain etc. The rating has already been implemented at
two marketing locations that have achieved ‘GreenCo Silver rating’. Various other
marketing locations are identified to roll out this rating system. The rating system
focusses on overall resource conservation and thus helps in mitigating the overall
impact on climate change and Carbon emissions by the operations.
• Infrastructure: Currently 1000KMs of pipelines are under construction and addi-
tional pipeline are in planning stage. Emphasis on developing Green building has
been given in the corporation.
• Carbon Footprint Assessment: As a part of Corporate Sustainable development
policy, HPCL continuously monitor and control the activities to minimize its carbon
footprint. The activity of carbon footprint assessment will be carried forward at Mar-
keting locations in the current year.

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Bharat Petroleum Corporation Limited (BPCL)

Environmental and Green Initiatives taken:

Given the nature of its business, BPCL is aware that its products are and could have signifi-
cant social and environmental concern during production and consumption. Over years,
BPCL has been constantly investing its efforts in producing products which are durable,
environmentally friendly and minimize damage to society and the environment. To success-
fully do this, it has put together a capable R&D team that works constantly on innovating
new products and improving existing products. Some of the products with enhanced envi-
ronmental performance includes, Euro III & IV Motor Spirit, Euro III & IV HSD and Hor-
ticulture Mineral Oil (HMO).

• BPCL has paid close attention to the reduction of energy consumption at all its dis-
tribution outlet and centres. Keeping this goal in mind, they have provided Green
Lighting and Solar systems at 205 Retail Outlets during 2014-2015
• MAK All Season HMO: MAK All Season HMO is a single product which abides by
the stringent requirement of IMO. Both conventional and organic farmers benefit
from this product. This environmentally friendly product has been found to be much
safer than conventional products for plants, soil, environment, farmer’s health and
even for human consumption. Because of its effectiveness, only a small quantity is
required to be applied.
• Regarding mechanism to recycle products and wastes, the nature of business con-
ducted by BPCL does not provide for a high scope for using recycled material as
process units. The estimate of the percentage of waste recycled would be less than
5%. That being said, BPCL business units constantly look for opportunities to recycle
waste generated because of the work in its operations.
• BPCL has installed Effluent Treatment Plants (ETP’s) to utilise the waste water gen-
erated at many of its locations. The water that is treated using the ETP is further used
in gardening, toilets and other non-potable applications. BPCL constantly looks for
new methods and ways in which it can increase the amount of water recycled at its
units. Some of the items that have potential to be recycled at their units are: Batteries
(hazardous waste-through buy-back arrangements with the suppliers), Used filters

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(hazardous), Oil rags/cotton (hazardous), Paper (non-hazardous and Sludge (hazard-
ous from refineries) etc.
• As part of the sustainability development initiatives, BPCL has undertaken waste
management studies and has implemented effective ways to manage waste at its Re-
fineries and Marketing locations.
• Certified Environmental Management System (ISO 50001) implemented at Mumbai
Refinery & Kochi Refinery and it is progressively being implemented at the market-
ing locations.
• BPCL has established a 5 MW windmill project at Kappatguda, Karnataka which is
registered with UNFCCC and the company has received carbon credits for the same.
• Various projects on non-conventional energy are at various stages of development
such as 4 MW Solar Installation at Bina Dispatch Unit, 1 MW Installation at Central
Research & Development Centre, NOIDA and 6.3 MW wing mill installation in Kar-
nataka.
• BPCL refineries are implementing Energy Conservation measures in a big way.
These include Flare Gas Recovery system, replacement of old Crude Distillation
Units (CDU)with energy efficient heat integrated units, enhancing steam trap avail-
ability in CDU, installation of jet type fan-less cooling tower for cooling water cir-
culation.
• Adoption of Rain Water Harvesting at Refineries and Marketing Locations covering
catchment area of 2,20,096 sq. meter.
• Publication of Sustainable Development Report as per Global Reporting Initiative
Framework & Guidelines.
• BPCL has set up robust environment management systems across various plant loca-
tions as well as at the corporate and regional level. They are focusing its efforts on
constantly innovating its processes and operational efficiency to be less resource, en-
ergy and water intensive and result in minimal emission and waste.
• Among various environmental initiatives, priorities lie in reducing energy consump-
tion and GHG emissions, and water resource management, and minimizing and man-
aging waste and effluents from operating locations and offices. They are also explor-
ing, in a big way, the field of renewable energy, especially solar, wind and biogas.
BPCL’s efforts and performance on these parameters have been highlighted through-
out this section.

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• Each location and BU is monitored on a number of performance indicators (economic
and otherwise) on a quarterly and annual basis. Integrated into these performance
indicators, is the performance on specific environmental aspects. Targets and bench-
marks are reviewed quarterly to ensure that locations are able to manage their envi-
ronmental impact as well. BPCL’s robust Health Safety Environment Policy also
prescribes the approach to be adopted towards environmental protection, thereby en-
abling them to integrate their environmental performance into the mainstream eco-
nomic decision making.
• BPCL also takes measures to ensure that its employees are sensitized about their role
in mitigating environmental impact. Petroplus, a bi-monthly internal communication
magazine reaching 15,000 strong employee bases, features articles about the envi-
ronment to create awareness among employees about conservation practices within
and outside the Organisation.
• BPCL’s flagship water management project has resulted in transforming 90 villages
in arid regions to become water positive. This project has received worldwide recog-
nition and was also declared the winner in “Excellence Awards for Social Responsi-
bility” at the 21st World Petroleum Congress organized in Moscow held in June
2014, competing with finalists like Shell & Exxon Mobil, and from among 100 nom-
inations worldwide.

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Chennai Petroleum Corporation Limited (CPCL)

Environmental and Green Initiatives taken:

Chennai Petroleum Corporation Limited (CPCL)has taken various green and environment
protection initiatives to ensure a sustainable future. Some of the initiatives taken are:

Energy Efficiency improvement

Continuous energy conservation measures are being taken to reduce CO2emissions. Some
of the measures already completed are given below:

• Installation of Air pre-heaters and economizers in process Heaters and Boilers re-
spectively to reduce CO2 emissions.
• Installation of Waste heat recovery Boiler, CO Boiler for steam generation & result-
ant reduction in CO2 emission
• Installation of flare gas recovery unit to recover hydrocarbons going to the flare sys-
tem.
• Efficient power generation through Gas Turbine Generators
• Optimization of process variables by computer aided supervisory control through
DCS (Advanced Process Control)
• Vapour absorption Refrigeration in place of Compression refrigeration
• Integration of all Fuel Gas systems to reduce flaring

Use of Alternate and renewable sources of energy

Power from windmill & solar energy is being generated as alternative renewable source of
energy to reduce CO2 emission.

The present CO2 Emission from CPCL’s operations is 2.6 MMT/year and they have planned
to reduce the same by 0.15 MMT by the year 2020 through implementation of various energy
efficiency improvement measures, alternative renewable energy generation and Green belt
development.

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Green Belt development

The greening of CPCL and its environs is another facet of environmental conservation.
CPCL has developed Green Belt around CPCL’s Plants in Manali and Panangudi. This mit-
igates fugitive emission, dilutes accidental releases and balances eco-environment – besides
beautifying the surroundings. The present green belt cover available is 400 acres which will
be further increased to 500 acres

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Numaligarh Refinery Limited (NRL)

Initiatives undertaken by NRL on Climate Change

Numaligarh Refinery has been conceptualized as one of the most environment friendly and
energy efficient refinery in the country. Right from its inception, conscious efforts have been
made at every stage to preserve the environment and to achieve excellence in environment
management.

Fuel consumption directly contributes to higher emission of greenhouse gases, which in turn
affects natural ecological processes. Therefore, energy conservation has been a focus area at
NRL since conceptualization of the refinery. NRL has adopted state-of-the-art energy effi-
cient technology in its refinery such as high efficiency furnaces with glass air pre-heaters,
captive co-generation power plant with heat recovery system, maximization of waste heat
recovery, installation and operation of power recovery turbine in the hydrocracker unit etc.

Some of the major initiatives undertaken by NRL towards conservation of energy are as
follows:

• NRL has implemented a carbon credit project titled “Captive Power Generation by
Recovery and Utilization of the Waste Energy (Thermal and Pressure) of HP Steam”
at its refinery at Numaligarh. A Steam Turbine Generator (STG) of 12 MW capacity
has been commissioned for generation of electricity utilizing surplus steam in the
refinery. The project has been registered as a CDM project at UNFCCC with esti-
mated CO2 equivalent emission reduction potential of 41,885 Tons per year.
• NRL has started utilization of natural gas, which is considered as a clean fuel, in its
Captive Power Plant (CPP) for generation of power and in furnaces of process units
replacing Naphtha. Natural Gas is also utilized as feed for production of hydrogen.
The estimated reduction in CO2 equivalent emission is 40,000 Tons per year.
• NRL has completed a study on estimation of Green House Gas (GHG) emission /car-
bon footprint during 2011-12. GHG footprint for the year 2010 was 0.26 MT CO2e
per MT of crude processed. Following the study, NRL has taken up several mitigation
measures to reduce GHG emission in the refinery. As a result of such measures, GHG
inventory of NRL has been reducing gradually. NRL’s GHG emission data from
2009-10 to 2012-13 are as follows:

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• NRL has been certified under ISO 50001:2011 for Energy Management System since
2013-14. NRL is amongst the first few refineries in the country to have been certified
under this system.
• NRL is implementing a project for recovery of flare gas, which is anticipated to con-
tribute towards reduction of GHG emission.
• A 100 KW Solar PV panel has been installed at roof top of administrative building
at Numaligarh during 2014-15.
• Installation of Haldor Topsoe Exchange Reformer (HTER) in Hydrogen Unit for in-
creased Hydrogen production without any additional fuel firing.
• VOC (Volatile Organic Compound) project is being implemented at Effluent Treat-
ment Plant for reducing hydrocarbon emission.
• Installation of double seal at all class A/B petroleum storage tanks has been com-
pleted for reducing hydrocarbon emission.
• Steam Trap management system is being implemented for reducing steam loss. Fuel
savings is 4,500 Standard refinery fuels in tons (SRFT) per year.
• A project for up-rating of existing Gas Turbine generator was completed to augment
power generation.
• Hollow Fibre Reinforced Plastic (FRP) blades have been installed replacing metallic
blades in overhead Air fin coolers of CDU resulting in estimated fuel saving of 4
SRFT per year.
• Implementation of magnetic resonator in the GTG-1 has been completed in Nov’13.
Fuel saving is 470 SRFT per year.
• Fuel Gas recovery from Hot Well of Vacuum Distillation Unit completed in Sept’14.
Fuel saving is 895 SRFT per year.
• High emissivity Ceramic coating in DCU furnace was completed in Aug’14. Fuel
saving is 175 SRFT per year.
• Replacement of higher heat duty exchanger EE-01 in HCU has been completed. Es-
timated fuel saving is 8000 SRFT per year.
• Steam export to Hydrocracker Unit (HCU) directly through a shorter length line from
Hydrogen unit has been completed. Fuel saving estimated at 384 SRFT per year.

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• A scheme for reduction of hydrocarbon vapor loss through flare and reduction in slop
oil generation in coke chamber during vapor heating and cooling at DCU was com-
pleted. Estimated fuel saving is 2,500 SRFT per year.
• Reducing stripping steam in kero stripper in CDU and Vacuum column bottom re-
boiler steam. Fuel saving estimated is 1500 SRFT per year.
• CDU stabilizer off-gas diversion to Delayed Coker Unit (DCU) 2nd stage compressor
to recover LPG. Fuel saving estimated is 880 SRFT per year.
• Unconverted Oil ex HCU diversion to diesel instead of fuel oil pool. Fuel saving
estimated is 212 SRFT per year.
• Cleaning of Tank bottom sludge by Modern Tank Cleaning Process (BLABO pro-
cess). Above 98% of oil recovered from tank bottom oily sludge.
• Fuel Oil additives in Fuel oil for increasing combustion efficiency in fired burners.
Job done in July’14. Fuel saving achieved is around 3.5%.
• Rentar fuel catalyst tube installation done in Feb’15 in two burners at Utility Boiler.
Fuel saving estimated is 425 SRFT per year.
• T-5 Tube replacement (40W) with 28W fittings in refinery and NRL Township. Fuel
saving is 9 SRFT per year.
• A meticulously planned and developed green belt, all around the refinery has now
grown in to rich foliage, rendering a perfectly natural barrier. A 100m wide green
belt around the refinery and 25 m wide around the marketing terminal has been de-
veloped.
• Massive Plantation has been carried out in the Green Belt so as to provide a natural
barrier for attenuation of noise and air pollution.

Activities proposed for the future to reduce GHG emissions

• Diesel Hydro Treater (DHDT) project for meeting 100% Euro-IV grade Diesel fuel
requirement in line with Auto Fuel Vision Policy 2025.
• Revamp of the existing Motor Spirit Plant to facilitate 100% BS-IV MS production.
• Bio refinery project is being pursued with the objective of producing ethanol from
bio-mass, particularly, bamboo as feed stock. Ethanol so produced is envisaged to be
utilized in blending with auto fuels.
• Refinery Expansion Project from 3.0 to 9.0 MMTPA with energy efficient technol-
ogy selection.

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• Adaptation of upgradation project like VCC/Isotherm/Slurry Hydrocracker.
• Expansion in cross-country pipeline.
• Capacity revamp of refinery with solar/hydal power.
• Establishment of state of art R&D Centre.
• CO2 Capturing from Flue gas (Subject to success of R & D project which also to be
undertaken by 2016).

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Mangalore Refinery & Petrochemicals Limited (MRPL)

Environmental and Sustainability Initiatives taken:

In MRPL, following initiatives have been undertaken:

• The fired heaters in process units of the entire Refinery Complex and the captive
power plant installed under the recently commissioned Phase-3 project are designed
to take Liquefied Natural Gas (LNG) as fuel.
• Two Gas turbines (1* 22 MW, 1* 36 MW) have been installed to generate power and
steam, to either consume Refinery fuel gas or Liquefied Natural Gas as fuel
• Solar Lights are provided in many places of Refinery and Colony
• Bio Gas Plant: MRPL has successfully commissioned the Environmental Friendly
Biogas generation plant for generating Biogas from canteen & colony food waste,
designed and installed by M/s Mailhem Engineers Pvt Ltd., Pune. The major equip-
ment of the plant are Feed Shredding facilities, Primary & Secondary Anaerobic Di-
gesters, Biogas collection System and Biogas compression and delivering system to
the Canteen burners.
o The plant can handle up to 1000 kg/day of food & vegetable waste. The capacity
was fixed based on estimates on food waste generated per-day per household,
current canteen waste and future colony / canteen expansion.
o The Compressed biogas is supplied to canteen for using as a fuel substitute for
commercial LPG.
o Process Description: The basic concept of the Bio gas plant design is based on a
process known as Upward Anaerobic Sludge Blanket (UASB) process developed
by Dr. Lettingah in the Netherlands and specifically modified by M/s Mailhem
Group for handling food waste containing high percentage of suspended solids.
o The food waste collected from the township / canteen is brought to the sorting
table in trolleys or buckets. From this, non-biodegradable materials like plastic,
aluminium foil, etc. are physically sorted out. Food waste is loaded manually on
the sorting table along with water and shredded using shredder. The food waste
gets converted into a slurry form and is then introduced into the Modified UASB
Primary Digester.

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o The digester serves mainly as a hydrolysis cum acidification tank for the treat-
ment of suspended solids. It contains internal proprietary modules, baffles and
launders made in Fibre Reinforced Plastic, reinforced with mild steel. It is pro-
vided with a stirrer drive assembly with blades for scum breaking and an airtight
top cover. The overflow of primary digester is collected into a Sump cum Recycle
chamber and pumped into the Secondary digester.
o The Secondary digester serves as the main methane fermentation tank and BOD
reduction takes place here. Both stages are of proprietary modified UASB con-
struction. The secondary digester too is equipped with proprietary internals and
stirrer assembly. The treated overflow from this digester is connected to the
drains.
o The biogas generated is collected in a neoprene rubber balloon, which is kept in
a suitable separate enclosure. Though Biogas is classified as a non-explosive gas,
naked flame in and around the biogas plant must be avoided. The Biogas quantity
received in the balloon is measured with the help of a scale provided outside the
balloon room.
o A compressor is used for compressing the gas from the balloon and supply to the
MRPL canteen as a supplement to LPG fuel. The Biogas balloon can store up to
40 m3 of gas.

The Goals & Objectives sought to be achieved:

CO2 emission reduction objectives:

• 5.331 MMT in 2015 to 4.918 MMT by 2020 (Total reduction is 0.413 MMTPA)
• 4.918 MMT in 2020 to 4.802 MMT by 2030 (Total reduction is 0.116 MMTPA)

The Progress made so far:

Roof top solar panels are being provided on 10,000 m2 area during FY 2015-16. Order is
being placed for the first year i.e. 2015-16

Government of India is encouraging all PSUs to utilise renewable source of energy, thereby
minimizing dependence on existing grid power. Grid Interactive photovoltaic power plant
works on solar energy. Solar energy captured by the photovoltaic cells will be converted into
electrical energy. These cells will be positioned in a location where solar energy is available.

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During day time, energy generated by these cells will be connected to the grid through syn-
chronizing circuit. This power will meet the partial load of the building during day time.

As per recommendation of Government of India-Ministry of New and Renewable energy


roof top solar panels are being installed towards energy conservation and usage of renewable
source of energy. In MRPL, roof top area of 50000SqM on substations and central control
rooms in phase 1 and phase 2 of the refinery is planned to be utilised. The estimated expendi-
ture is about Rs. 6.4 Crores per 10000 Sq Metre area. It is planned to complete implementa-
tion in the next five years. Pay back is calculated to be approximately 3 years.

Budgetary approvals have been obtained from the Management. Tender is going to be floated
shortly for the first-year plan.

Activities proposed for the future which will help reduce GHG emissions or help adapt to
climate change:

• Process optimization including flare gas recovery system


• Fired heater efficiency improvement
• Steam optimization
• Power importing

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Bharat Oman Refineries Ltd (BORL)

Environmental and Green/Sustainability Initiatives Taken

BORL has adopted an “Energy Policy” during 2014-15 duly approved by the BORL man-
agement for continual improvement in the energy performance of the Company.

As a conscious and responsible corporate citizen, BORL has identified various initiatives in
line with the National Action Plan on Climate Change (NAPCC). Some of the programs are
as under:

• Implementation of Energy Management System (ISO-50001: 2011).


• Implementation of Rain Water Harvesting System in 12 acres area within refinery.
• Implementation of 10 Nos of Rain water harvesting system at residential township.
• Implementation of Vermi Composting site at residential township.
• Installation of 2*1000 LPD solar water heating systems at residential township.
• Installation of LED lights at common locations of Refinery & Residential Township.
• Installation of 5-star rating energy efficient fans at Residential Township.
• Installation of Solar Power based electric fencing covering refinery and township
property line of about 22 kms.
• Solar and Wind power based systems, one each at refinery and township, for provid-
ing power to wireless cameras and networking systems for surveillance.
• Development of greenbelt in the area of more than 187 Ha.

Results achieved from some of the schemes implemented are given in the following table:

BORL has developed a two-tier mechanism for structured review of energy performance of
the organisation:

• Review at operating level: Monthly review of performance by Head (Process).


• Review at Apex level: Quarterly review at Apex level by senior management of or-
ganisation.

Some of the major projects/ schemes towards energy efficiency and climate change adapta-
bility which have been planned in the following years and their estimated costs are summa-
rized below:

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Balmer Lawrie & Co Ltd (Balmer Lawrie)

Green and Sustainable initiatives taken:

• Balmer Lawrie has finished installation and commissioning of 160 KWp of Solar
power plant at its Industrial Packaging units in Asaoti and Navi Mumbai in 2014.
• Balmer has installed Zero Liquid Effluent Discharge plant at its manufacturing facil-
ity at Manali, Chennai.
• lnstallation of energy efficient welding machine at its Barrel Manufacturing units in
Asaoti, Silvassa & Navi Mumbai has been completed.
• Balmer Lawrie has introduced low VOC (Volatile Organic Compound) paints at its
Barrel manufacturing units.
• The company has implemented Rain Water Harvesting facility at its factory premises
at Navi Mumbai.
• For to & fro transportation of containers from Kolkata Port to its CFS, the company
has built an lntegrated Railway Siding between Kolkata Port & CFS, thus reducing
carbon footprint significantly.
• The Company's R&D centre - Application Research Laboratory continuously en-
deavours to develop environment friendly and biodegradable lubricants like hydrau-
lic fluids, gear oils for high temperature applications for enclosed and open gear
boxes, engine oils for 4 stroke gasoline engines etc.
• The company has installed Variable Frequency Drives (VFDs) to minimize power
consumptions at its Greases & Lubricants manufacturing units.
• All establishments of Balmer Lawrie are ISO 14001 certified.
• The company has developed of green belts at each of its operational areas and holds
regular tree plantation programs. As part of its support for the environment, planta-
tion of saplings by VIP visitors at its plants and facilities is a practice the company
follows.

Green and Sustainable initiatives proposed for future to mitigate climate change:

• The company has planned to further install a 250 KWp solar plant at its manufactur-
ing units by 2019.

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• Balmer Lawrie plans to gradually incorporate the requirements of Green Building
codes asper IGBC in its upcoming buildings & installations.
• The company has devised a plan to gradually replace light fittings with LEDs and
use energy efficient appliances in its operational areas.
• As part of sustainability initiative, Balmer Lawrieis installing an organic waste com-
posting unit in the premises of Victoria Memorial at Kolkata, which shall be com-
missioned in August 2015.
• An initiative has been taken to use Bio diesel along with LDO as a fuel for Thermic
fluid heaters at its Greases & Lubricant unit in Silvassa.
• For carbon sequestration, Balmer Lawrie has planned for extensive tree plantation in
coming years at various units across the country.
• The company is running an organisation wide e-campaign on green procurement and
simple steps on carbon reduction technique during last week of October 2015.

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Literature Review

The literature has been reviewed from the reputed journals of both National and Interna-
tional Journals pertaining to Green Marketing and its related issues. The literature has also
been reviewed from Text Books, Magazines, & Websites.

Green Marketing - Insights

Dileep Kumar (2010) analysed that how far the hotel business organizations in the tour-
ism sector meet the customer‘s needs through green marketing effort and how they influ-
ence the consumer behaviour and their satisfaction by inducing environmentally respon-
sible behaviour.

Vijay Jain et al (2010) summarized the three C‘s process for green marketing implemen-
tation as Consumer Value Positioning, Calibration of Consumer Knowledge and Credi-
bility of product.

Artee Aggrawal et al (2010) outlined that Eco-responsible (Green) organizations have a


tough task to optimise their product offering mix in such a way so that they can not only
attract customer towards them but also can have their products price competitive.

Ramakishen et al (2010) understood that the factors for going green as Goodwill, Dif-
ferentiation, Competition, Pressure Groups, Government Pressure, Customer Demand,
New Market Entry.

The study conducted by Sourabh Bhattacharya (2011) states that the green marketers in
India should carry out heavy promotional campaigns, because majority of the Indian con-
sumers are price-sensitive and are not sure about the quality of green products.

The study by Saloni Pawan Diwan & B. S. Bodla (2011) observed that it is not a smooth
sailing of the ship carrying green products and services in the sea of intense competition.
The boat can encounter an iceberg of increased cost and prices and inflated claims of
―greenness‖.

According to Joseph & Rupali Korlekar (2012), there is a scope for in-depth studies on
green marketing to be conducted in developing countries like India, not only on under-
standing consumers‘ perception but to study the detailed profile of such consumers who
have a more positive attitude towards green marketing and green products.

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Selvakumar & Ramesh Pandi (2011) indicated that Green Marketing is not all about
manufacturing green products and services but encompassing all those marketing activi-
ties that are needed to develop and sustain consumers‘ eco-friendly attitudes and behav-
iours in a way that helps in creating minimal detrimental impact on the environment.

The study by Moloy Ghoshal (2011) examined that green marketing was still in infancy.
In the perception of marketing scholars, green marketing refers to eco-level and market
segmentation and the role of structural factors and economic incentives in influencing
consumer behavior. The green marketers must understand to satisfy two objectives: im-
proved environmental quality and customer satisfaction.

The research by Anup Sinha & Jamie Gilpin (2009) primarily focused on finding inef-
ficiencies in the carbon value chain of energy production using renewable methods. By
utilizing anaerobic digestion and gasification technology Aura could produce biogas from
cattle, swine, and other farm animals.

The study by Ann Kronrod et al (2012) highlighted and explained the surprising preva-
lence of assertive environmental messages in the media. Environmental agencies, which
are populated with people who perceive protecting the environment as a highly important
issue, should understand that not all consumers are as informed and concerned about the
environment.

The study by Murugesan (2008) underlined that firms may use green marketing as an
attempt to address cost or profit related issues. Disposing of environmentally harmful by-
products, such as polychlorinated biphenyl contaminated oil is becoming increasingly
costly and the firms that can reduce harmful wastes may incur substantial cost savings.

Charles W Lamb et al (2004) explained that ―Green Marketing has also become an
important way for companies to build awareness and loyalty by promoting a popular is-
sue. By positioning their brands as ecologically sound, marketers can convey concern for
the environment and society as a whole.

Robert Dahlstrom (2011) examined that Green Marketing has positive influences on
multiple participants in the economy. The environment, developing economies, consum-
ers, corporate strategy, the product, production processes, and supply chain benefit from
green marketing. Green marketing firms establish strategic alliances with government,

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local communities, nongovernmental organizations (NGOs), industry experts, and com-
petitors.

According to Roger A Kerin et al (2007), Green Marketing takes many forms. It comes
from product development opportunities that emanate both from consumer research and
its ―Pollution Prevention Pays‖ program. This program solicits employee suggestions on
how to reduce pollution and recycle materials.

Biji P Thomas & H Nanje Gowda (2010) highlighted that environmentally friendly
buildings are also known as Green Buildings. Some of the visible ―green‖ features, such
as exterior window shading, good daylighting, green (landscaped) roofs, and natural ven-
tilation chimneys are often considered as the signals of being green.

Philip Kotler & Kevin Lane Keller (2011): Companies that mound ―green programs‖
can face two main problems: consumers may believe that product is of inferior quality of
being green and consumers feel the product is not really that green to begin with.

Arun Kumar & N. Meenakshi (2009): Consumers have to play an important role if com-
panies have to be made responsible for preservation of the environment. They should stop
buying products of companies which are polluting the environment. Apart from compa-
nies, NGOs also have very important roles to play. NGOs should carry out research and
tell the companies how they can make their process more environment-friendly.

Rajan Saxena (2010) maintained that Green products and services are today increasingly
being accepted by both the companies and customers. Following are some of the argu-
ments in favour of green marketing which makes it profitable for the firm/organisation.

• An aware customer now insists on a green product and packaging material.


• Aware customers are joining together to form interest groups which lobby for eco-
friendly products and legislation to protect their environment.
• Given the choice, customers tend to buy eco-friendly products.

The study by Project Guru (2010) indicated that India is still at nascent stage in using
Eco-friendly products. It is the responsibility of the individuals, organizations and Gov-
ernment to take further steps to increase the awareness on benefits of eco-friendly prod-
ucts.

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The study by Altaf Khan (2011) about the Indian companies practicing the Green Mar-
keting Concepts as follows:

• Samsung Electronics has adopted modern environmental conservation activities,


such as the developing of environmental-friendly products and service and main-
taining a safe and pleasant working environment at factories, based on Green Man-
agement and the Life-Cherishing philosophy.
• Tuna manufacturing company has modified their fishing techniques because of
the increased concern over drift-net fishing and the resulting death of dolphins.
• Toyota, the most popular automobile industry, introduced the Prius, which is the
first hybrid car that is more environmental-friendly compared to other cars.
• Xerox, the pioneer photo copier company introduced a ―high quality‖ recycled
photocopier in an attempt to satisfy the demands of firms for les environmentally
harmful products.

Arun Kumar & N. Meenakshi (2011) believed that Sustainable innovation and market-
ing is the key to future profitability and companies need to adopt the following practices:

• Companies that comply with the most stringent standards do not have to manage
separate processes for different markets. norms of each country in which its man-
ufacturing facilities are located.
• Smart companies reduce the consumption of non-renewable resources such as
coal, petroleum and natural gas as well as renewable resources such as water and
wood.
• To design eco-friendly products, companies examine product life cycles and un-
derstand consumer concerns. Preserving the environment is vital through the eco-
friendly products and which is vital for our own preservation.

Sherlekar (2007) has identified that using a titled earthen pitcher as its symbol, the Eco-
mark label is intended to enable consumers to choose products which are environmental
friendly. The products demanding immediate Eco-marking are textiles, toilet soaps, de-
tergents, paper, paints, packages, pesticides, drugs etc.

The study by Sandhya Joshi (2011) pointed that Environmental issues have gained im-
portance in business as well as in public life throughout the world. Clearly green market-
ing is part and parcel of overall corporate strategy; along with manipulating the traditional

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marketing mix - product, price, promotion and place. Smart business houses have ac-
cepted green marketing as a Part of their strategy.

The survey on Green Brands Despite Recession (2010) focused on the global brands
and attitudes, there is learning for local green brands as well. The good news is that con-
sumers generally trust green advertising, especially in developing markets.

The study by Banumathi Mannarswamy (2011) proved that Worldwide evidence shows
people are concerned about the environment and are changing their behaviour accord-
ingly. As a result, there is a growing market for sustainable and socially responsible prod-
ucts and services.

The study by Meenakshi Handa (2006) has indicated that Activist groups and the media
have played a major role in enhancing the environmental awareness and consciousness of
consumers in recent years. Most studies on the subject show that although the awareness
and environmental behaviour of consumers across countries, educational levels, age and
income groups may differ, environmental concerns are increasing worldwide.

The study by Welling & Anupamaa S Chavan (2010) analysed Green marketing is not
going to be an easy concept. The firm should plan and then carry out research to find out
how feasible it is going to be. Green marketing must evolve since it is still at its infancy
stage. Adoption of

Green marketing may not be easy in the short run, but in the long run it will have a positive
impact on the firm.

The study by Jacquelyn A. Ottoman (2006) explained that Green Marketing must satisfy
two objectives: Improved Environmental Quality and Customer Satisfaction. Research
indicates that many green products have failed because of green marketing myopia. Mar-
keters ‘myopic focus on their products‘ greenness over the broader expectations of con-
sumers or other market players (such as regulators or activists.

The study by Vinay et al (2011) determined that the concept of green marketing has been
around at least since the first earth day in 1970. But the idea did not catch on till 1980‘s,
when rising public interest in the environment led to a demand for more green products
and services. The companies like Wipro, HCL, TNPL, IBM, ONGC etc., implemented
the concept of green marketing in their organization.

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According to Vemuri Lakshmi Narayana & Dhinesh Babu (2008), A clever marketer
is one who not only convinces the consumer, but also involves the consumer in marketing
his product. Green marketing should not be considered as just one more approach to mar-
keting, but has to be pursued with much greater vigor, as it has an environmental and
social dimension to it.

The study by Sanjit Kumar Dash (2010) identified the marketing strategies for green
marketing include Marketing Audit (including internal and external situation analysis) It
was found that Challenges ahead include green products require renewable and recyclable
material, which is costly requires a technology, which requires huge investment in R&D.
We must find an opportunity to enhance our product's performance and strengthen your
customer's loyalty and command a higher price.

In their study by Pavan Mishra & Payal Sharma (2010) conceptualized that Green Mar-
keting should not be considered as just one more approach to marketing, but has to be
pursued with much greater vigor, as it has an environmental and social dimension to it.

The study by Nandini Deshpande (2011) has pointed out that Green Marketing should
not neglect the economic aspect of marketing. Marketers need to understand the implica-
tions of Green Marketing. Thus, Green Marketing is a golden goose, and can be a very
powerful marketing strategy though when it is done right.

Mulchand Sen (2007) explored that Green Marketing covers more than a firm‘s market-
ing claims. has pointed out that Green Marketing should not neglect the economic aspect
of marketing. Marketers need to understand the implications of Green Marketing. Thus,
Green Marketing is a golden goose, and can be a very powerful marketing strategy though
when it is done right.

The study by Saranya (2011) analyses that Green Marketing mainly focuses on promot-
ing the consumption of green products. Marketers also have the responsibility to make
the consumers understand the need for and benefits of green products than non-green
products.

Ajit Upadhyaya and Rajeev Shukla (2011) highlighted that Environmental concerns and
influences on green consumers refer to the practice of practicing – selling or using prod-
ucts/services based on their environmental benefits.

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The study by Habib Ahmad et al (2010) reveal that Pakistani customers have adequate
exposure to print and broadcast media but television advertising is preferred. Besides print
and electronic media, outdoor advertising is also an important part of advertising green
products in Pakistan.

The study by Sudhanshu Joshi et al (2008) identified the Examples of Corporates Initi-
atives towards green branding in Banking. India‘s largest private bank ICICI asks its cus-
tomers to sign up for paperless bank statements and the bank plants a tree for each com-
plying customer. In Brazil Unilever and WalMart have built sustainable houses within
stores made from recycled products and showing how to make everyday living eco-friend-
lier.

The study by Dharmendra Mehta (2011) indicated that Indians are not only conscious
about their environment but also health conscious as well. This paradigm shift in attitude
has made Indian consumers attractive to green marketers. It has made the population more
responsive and aware towards green marketing appeals.

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