Selected Case Studies - Oil India Things Right.pdf · Mr. Arun Kumar Dutta, Head Elect (E&P) Retd. 46 10 A Unique Troubleshooting Wit - Mr. Soumendra Kumar Choudhury, Manager (F&A),

A Compilation by Vigilance Department

i

A COMPILATION BY

VIGILANCE DEPARTMENT

Selected Case Studies

DOING THINGS RIGHT

Registered Offi ce:P.O. Duliajan

Dist. DibrugarhAssam - 786 602

Ph: 0374 2800427 Fax: 0374 2800522

Corporate Offi ce: OIL House, Plot Number 19, Sector 16A, Noida, District Gautam Budh Nagar, Uttar Pradesh 201301, IndiaTel: +91 (120) 2488 333

www.oil-india.com

Disclaimer : All the Episodes published here are based on supplements from Internal Contributors/Authors, solely for the academic purpose of knowledge sharing. Editorial Team does not take responsibility whatsoever for the published information.

“ If you tell the truth

you don’t have to

remember anything.”– Mark Twain

ii

Doing Things Right: Selected Case Studies

“Happiness is when what you think, what you say, and what you do are in harmony.”

– Mahatma Gandhi

We are at the very beginning of time for the human race. It is not unreasonable that we grapple with problems.

But there are tens of thousands of years in the future. Our responsibility is to do what we can,

learn what we can, improve the solutions, and pass them on.

Richard P. Feynman

A CompilAtion by

Vigilance Department


Doing Things right

A CompilAtion by

Vigilance Department


– Mahatma Gandhi




Richard P. Feynman

Knowing what’s right

doesn’t mean much unless

you do what’s right

Theodore Roosevelt

Foreword

Vigilance Department in Oil India Limited functions as an integral part of the

management and strives to lend a helping hand to ensure excellence in corporate

governance. Our endeavour is to promote improvement in systems, processes and

practices. It is an eternal friend of the right intentioned and emphasizes on making

positive contribution. As a part of the continual effort, Vigilance Department has taken

number of steps in order to make people aware about common pitfalls through various

initiatives like sensitization programs, publishing booklets, forwarding e-mails etc. so

that awareness is there at the desired level.

To enhance this awareness level, we thought of compiling selected episodes of

‘learning from unique problems’ contributed by our executives together with learning

from ‘vigilance case studies’ dealt by the Department. The effort has resulted into this

booklet titled “Doing Things Right: Selected Case Studies” and has been prepared in

two parts; Part-I contains the episodes of ‘learning from unique problems’ and part-II

contains the ‘vigilance case studies’

I feel proud in handing over the booklet for use by all Oil Indians. This effort of ours is

in conformity with the theme of Vigilance Awareness Week-2013, which is “Promoting

Good Governance: Positive Contribution of Vigilance”. The contributions in part-I are

based on the submissions of the contributors, and in part-II, actual vigilance cases

have been given without mentioning the details so as to convert those into tools of

learning. We hope that the lessons learnt will be taken in a constructive way.

Noida Amit Mohan Prasad, IAS 21st January, 2014 Chief Vigilance Officer

“Don’t tell people how to do things,

tell them what to do and

Let them surprise you

with their results. “

– George S. Patton

ParT i

UniqUe ePisodes

Selected episodes of learning contributed by our People

while in search of doing things right amidst challenges

Index

Sl No. Episode Title Page No.

1 A Difficult Challenge in Cleaning of OIL Pipeline- Mr. Shyamal Choudhury, Chief Engineer (S&E), PHQ

1

2 Cathodic Protection Rehabilitation Work for OIL’s Main Trunk Pipeline - Mr Deepankar Sarma, Dy CEPL, PHQ

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3 In-House Innovative Design & Development of Microprocessor Based Controller and I/O Card for P/L Mobile System- Mr. Nabajyoti Lahkar, Dy. CEPL(T), PS-3

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4 A Unique Case from OIL PS-8 Sonapur Telecom Section- Mr. Jayanta Narayan Das, Dy CEPL (T), PS-8

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5 Problems Related to Vital Drilling Rig Equipments- Mr. Swadesh Dey, Head, Drilling(TS)

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6 Dealing an Unjustified Claim and Winning Over a Legal Battle- Dr B N Sahoo, CE(S&E).

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7 Modifications of Steering System of Chinese Make RG Series Work Over Outfit- Mr. K Loganathan, Head, Transport.

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8 A Big Challenge Streamlining Medicine Procurement System- Mr. Dulal Bhattacharjee, Sr. MM, Kolkata

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9 Unexpected Bursting of SMF Battery Mr. Arun Kumar Dutta, Head Elect (E&P) Retd.

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10 A Unique Troubleshooting Wit - Mr. Soumendra Kumar Choudhury, Manager (F&A), Kolkata

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11 Women Empowerment at Gandhia- Mr. Prasanta Kr. Baruah, Chief Manager, Security, Duliajan.

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1

EPISodE 1

A difficult Challenge in Cleaning of oIl Pipeline

Preamble: A decision was taken in 2005 to lay a 660 km pipeline from

Numaligarh to Siliguri to transport petroleum products produced by

NRL. This project involved conversion of a 212 km of loop line (laid in

1977-78), in the area along RS 3 (Kaziranga)—PS 4 (Sekoni)—RS

4 (Ghani) and PS 5 (Noonmati)—RS 8 (Dharampur)—RS 9 (Barpeta

Road), in order to transport ‘White Oil’ in place of ‘Black Oil’. Conversion

of ‘Black oil’ pipeline to ‘White oil’ pipeline had not been done in India

earlier. China Petroleum Technology & Development Corporation

(CPTDC) was entrusted with the job.

The process part involved multiple de-waxing (pigging) maintaining

continuous flow of oil all along the line. But due to absence of

continuous flow in a major portion of the line, the pigging operation

became a challenge. Certain modification jobs were done to address

the challenge and a new program was launched by the OIL Team on

experimental basis which was not done earlier. Ultimately with the

innovative process continuous flow was ensured.

A difficult challenge for which immediate viable solution was not

available, but the concerted team effort resulted in a unique solution.

It can be an example for future such requirements. It shows the

confidence level of committed people in tackling a difficult challenge

for a very vital requirement.

Mr. Shyamal Choudhury

Mr. Shyamal Choudhury, B.E. (Hons) in Mechanical Engineering is presently working as Chief Engineer (Safety & Environment) in Pipeline Department. He joined Oil India Limited in the year 1983 as an Executive Trainee in Pipeline Department.

Email: [email protected]

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Modus operandi

It was decided to clean RS 3—PS 4 sector first followed by PS 4—RS 4 sector. The cleaning job involved initially to prepare a wax free pipeline. It is worth mentioning that Assam crude oil carries about 12 % wax. After the pipeline was free of any wax deposit a cleaning compound was injected to flush the pipeline. It was seen that more than 50 pig runs had to be made in both the above cases to clean the pipeline. At times a number of pigs were launched at a gap of a few hours.

Schematic Diagram of Flow in Crude oil Pipeline

Ground reality

With the setting up of BRPL in 1978 the pumping requirement from PS 5 (Noonmati) increased from 3.0 MTPA gradually to 5.35 MTPA. In order to augment the line capacity PS 5—RS 8—RS 9 segment of the pipeline was looped in 1977-78. However, with commissioning of NRL (3.0 MTPA) together with fall in crude oil production the actual delivery of crude oil beyond PS 5 drastically came down to 0.75 MTPA or even less than that at times.


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During the months of June to September 2007 when dewaxing of PS 5—RS 8—RS 9 was carried out the average throughput from PS 5 was only 0.47 MTPA; this works out to 62 Kl/Hr. for continuous pumping which was less than the minimum capacity of a pump. For operational convenience pumping from PS 5 was carried out at around @120 Kl/Hr for only 10 to 12 hours a day. As per the work procedure of CPTDC for dewaxing of the pipeline a velocity of 0.5 to 1.0 m/sec was required which is equivalent to a throughput of 215 Kl/Hr.

The low throughput in the PS 5—PS 6 sector brought with it another problem. The looped section had a diameter of 406 mm as against the original section of 356 mm diameter. When both the pipelines were in operation the flow in the former was less. As a result there was large deposition of wax in this pipeline which further reduced its capacity.

From the previous experience, it was assumed that around 50 pig runs in each segment might be necessary to get a wax free line. In absence of a continuous flow in this section of the pipeline pigging as a part of the dewaxing programme became a challenge.

Way out

Originally the pipeline had been designed for pumping in one direction, say PS 5, Noonmati to PS 6, Bongaigaon. However a modification was carried out to facilitate pumping in the reverse direction as well, i.e., PS 6 to PS 5; the scraper trap launching and receiving barrels were connected to achieve this. This modification helped in rocking the pipeline during long shutdown periods. At PS 5, one of the two launching traps was connected to the receiving trap. This modification was to become useful to maintain a continuous flow in the Loop line for dewaxing.

Normal pumping arrangement

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Normal Pumping Arrangement at PS 5

During normal pumping operation the discharge of the main line pumps at PS 5 flows to PS 6 through both the main line as well as the loop line. For dewaxing programme Oil Movement section and PS 5 (Ops.) worked out a plan which was not tried out earlier.

Modification done to facilitate continuous pumping

The main line and the loop line at PS 5 were isolated; only the loop line was connected to the main line pump discharge. The launching trap of the main line was connected to the receiving trap; a line had already been laid connecting the latter with the storage tank. So when pumping was carried out crude oil would flow through the loop line from PS 5 to RS 9 via RS 8. As continuous pumping to BRPL was not required the station inlet valve at PS 6 would be opened as and when required.


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Modified Pumping Arrangement at PS 5

When there was no pumping to BRPL the station inlet valve at PS 6 would remain close. The entire crude oil pumped from PS 5 would travel to RS 9 via RS 8 through the loop line and would return to PS 5 from RS 9 via RS 8 through the 356 mm main line. At PS 5 it would flow through the scraper trap to the storage tanks.

When delivery to BRPL was required the station inlet valve would be opened to maintain the required flow rate and the balance would flow back to PS 5 via RS 8. In this way continuous pumping in the PS 5—RS 8—RS 9 sector could be achieved.

Initially, it took some time to establish a continuous flow in PS 5—RS 8—RS 9—RS 8—PS 5 loop, but once it was achieved gradually the throughput from PS 5 was increased. Finally a throughput of around 215 Kl/Hr. could be achieved.

Once continuous flow in the PS 5—RS 8—RS 9 loop line was maintained at the required rate the pigging operation also became possibility. In all 64 pigs were run in this section of the pipeline.

A job which at one point of time seemed unlikely thus became a reality.

Final observation: The innovative effort will definitely be helpful as a future need for pipeline services. A very good example for others to follow, especially due to the aspect that it led to new developments out of necessity.

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EPISodE 2

Cathodic Protection Rehabilitation Work for oIl’s Main Trunk Pipeline

Preamble: The case is related to corrosion prevention, through

Protective Cathodic protection of OIL’s main Pipeline which is the

lifeline of OIL’s production sustainability. The prevention was aimed

towards ensuring protection of the pipeline against corrosion and

keeping it healthy all throughout. The problem arose from 1981

onwards, when it was observed that there was a steady decline in

the efficacy of the corrosion protection system of the pipeline due to

natural degradation of the pipeline protective coating and faults in the

associated systems. The problem became bigger by 1999, posing risk

to the uninterrupted transportation of crude oil and thereby maintaining

crude oil production. The issue emerged to be a highly complex one

with no simple and straight forward solution. Also, no references were

available regarding steps which could be taken.

Taking the challenge, an exercise was carried out successfully to

rehabilitate India’s oldest pipeline. The entire exercise was carried out

between 1999-2004. The entire episode is unique in the sense that the

problem posed danger with no simple and straight forward solution

Immediate gain out of the exercise is restoration of protective level of

pipeline from 40% to 70% in between the period 1999-2004. It paved

way for a strategic solution on the issue. OIL’s Pipeline continues to

operate at rated capacity without any de-rating even after more than

50 years.

Mr. Deepankar Sarma

Mr. Deepankar Sarma, BE (Electrical) is presently working as Dy.CEPL (E&C), PS-8, Sonapur. He has experiences in Gas turbine & Steam turbine power plants, H.T. Electrical switch gears, Cathodic protection systems etc. To his credit he has presented a number of technical papers on Cathodic protection, in National Conferences organised by National Association of Corrosion Engineers (NACE) International Gateway India Section. Also, one of his papers presented has been published by NACE in 2009 in a book titled “corrosion case studies”.

Email: [email protected]; Mobile : 09435110741


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1.0 overview of the System

1.1 The main 1157 Km cross country crude oil Trunk pipeline from Duliajan to Barauni, [comprising of one section of 401 Km x 406 mm (16”) and another section of 757 Km x 355 mm (14”)] was commissioned in 1962. This cross-country crude oil pipeline, which is Oil’s lifeline, is primarily protected against corrosion using coal tar enamel [CTE] coating and Secondary protection is provided by Impressed Current Cathodic Protection [ICCP] system. Since Oil’s entire production is linked to the operability of this pipeline, it is extremely important that the pipeline remains healthy and free from corrosion failures. Now for an underground steel structure to be totally protected against external corrosion the Pipe-to-soil-potential [PSP] along the pipeline should be more negative than (-) 0.850V, as per international standard NACE RP 0169. As can be seen from Annexure-A, which lists the PSP values as recorded during commissioning, no point in the pipeline has a PSP less than (-) 0.850 V, thereby

Map of Duliajan – Barauni Crude Oil Pipeline

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indicating that the entire pipeline was Cathodically Protected against corrosion in 1962.

1.2 Subsequent to commissioning of the 1157 Km main crude oil pipeline, another CTE coated 424 Km x 200 mm (8”) Product Pipeline was also laid in the same ROW from Guwahati to New Jalpiguri (NJP). The existing CP System for the 1157 Km main crude oil Pipeline was now also protecting the newly commissioned 424 Km Guwahati Siliguri Product Pipeline [GSPL].

1.3 In 1978, two additional Loop Lines (LL) sections totalling 212 KM x 406 mm (16”) of CTE coated crude oil pipeline was laid between the section RSS (Kaziranga) - RS4 (Ghani) and PSS (Guwahati) - RS9 (Barpeta). Thus now the 1962 vintage ICCP system was protecting 3 pipelines iathe same ROW.

2.0 The Problem

2.1 Due to successive loading on the CP system as highlighted above, coupled with natural degradation in the pipeline CTE coating and faults in the associated structures of the pipeline system, a steady decline in the % of pipeline which is above a protective potential of (-) 0.850 V can be observed from 1981 onwards. This is graphically demonstrated in the ON PSP graph shown in Annexure-B.

2.2 The issue became so complex that by 1999 only about 40% of the main crude oil pipeline was above a protective potential of (-) 0.85 V oN. This was a major cause of concern as any failure in the main crude oil trunk pipeline would affect the entire production of OIL. Being the oldest pipeline in India there were no references available regarding steps which could be taken to quickly revive the Cathodic protection profile of the Pipeline. As Cathodic protection is very closely related to the condition of the Pipeline CTE Coating, conditions of cased crossings, insulation of valves, condition of Insulating joints etc. it was a highly complex issue with no simple and straight forward solution.

3.0 Work of Rehabilitation

3.1 Taking it up as a challenge an exercise was undertaken to rehabilitate India’s oldest cross-country pipeline. The CP system, which was of 1962 vintage, had to be totally re designed taking into consideration that there were now three pipelines on the common ROW. Special over-ground CP surveys like CAT, DCVG, Current requirement, Coating resistance, ON/OFF PSP surveys etc, which were hitherto never done anywhere in OIL, were carried out for the


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entire 1157 Km stretch from Duliajan to Barauni. The enormous amount of data generated from these surveys were painstakingly analysed in details. Since no standard software was available for co-relating these data, all the survey data were manually co-related and analysed. An executive summary of the analysis is given below [Ref. Annexure-C & D for graphical representation]

• Current requirement of the pipeline [which is a direct indication ofdeterioration of the coating] was found to be in the range of 87 to 513 µA/Sq m, which is 5 to 15 times higher than the original current requirement.

• Coatingresistanceindicatesverypoorcoating,andisaslowas282Q/Sqm [As against a minimum of 10,000 Ω/Sq m].

• Asmuchas84.3%of themainlinestructureswere found tobeshortedresulting in leakage of CP current.

Complete re-designing followed by installation of new anode beds were carried out simultaneously for all exhausted CP Anode beds from PS1 (Duliajan) to PS10 (Barauni). The challenge while doing this can be gauged from the fact that soil resistivity profile, which is an important parameter while designing any anode bed, varied from as low as 1000 Ω-Cm in one location to 1,50,000 Ω-Cm in another location - a challenge for any CP engineer in the world.

3.2 This entire exercise, which was carried out between 1999 -2004, resulted in 70% of the pipeline coming up above the protective level of (-) 0.85 V oN [increasing from the earlier low of 40%]. Intelligent Pigging Survey [IPS] carried out subsequently for the entire mainline indicates no significant metal loss due to external corrosion, a direct indication that the pipeline is in good health.

4.0 Appreciation from the outside Community

4.1 As it was the first case of rehabilitating India’s oldest pipeline, it was felt that the methodology and analysis of the entire exercise should be shared with other Cathodic Protection experts working in this field. The aim was twofold - one to highlight the human resource potential of OIL in working-out complex issues and secondly to gather feedback from experts on the methodology adopted by OIL. Accordingly, papers were presented on this topic at national conferences organised by NACE International Gateway India section, and it is a matter of great accomplishment that one of the papers presented by the undersigned

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has been published by NACE in 2009 in a book titled “Corrosion Case Studies”, ISBN 81-87099—47-X [priced at `2,000].

5.0 Going Forward

As pointed out earlier, CP and coating are complimentary to each other and as such this rehabilitation issue has to be tackled from both ends so that much better results are achieved and the repeat of the decline in the protection profile from the year 2005 onwards is arrested.

It may not be out of place to mention here that a core team has already worked out the strategic plan for completing the rehabilitation plan within a time span of 6 years. Presentation to Oil’s Corporate Management has already been made and certain directives issued by the management is being worked out, the primary being to revalidate OIL’S Internal Strategy by a 3rd Party expert.

“Opportunity often comes disguised in the form of

misfortune, or temporary defeat”

– Napoleon Hill


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Annexure - A

on PSP Profile of Crude oil Trunk Pipeline From: duliajan to Barauni

CHAINAGE Ml PSP PS1 0.97

5 1.17 6.3 8V/.9A 10 1.25 15 1.28 20 1.31 25 1.4 30 1.38 35 1.31 40 1.39 45 1.48 50 1.37

PS2 U/S 36V/5.2A 55 1.77 60 1.68 65 1.49 70 1.5 75 1.39 80 1.45 85 1.72

RSI 10V/3.8A 90 1.58 95 1.9

100 1.7 105 1.67 110 1.69 115 1.61 120 1.65 125 . 1.55 130 1.55

PS3(US) 20V/6.1A

CHAINAGE Ml PSP PS3(US) 20V/6.1A

135 2.1 140 2 145 1.98 150 1.81 155 1.85 160 1.87 165 1.88 170 2.01 RS2 10V/1.8A 175 1.86 180 1.81 185 1.7 190 1.62 195 1.7 200 1.66 205 1.71 210 1.58 RS3 14V/1.2A 215 1.75 220 1.68 225 1.7 230 1.48 235 1.49 240 1.49 245 250 1.3 255 1.45

PS4(U/S) 4SV/6.5A

CHAINAGE Ml PSP PS4(U/S) 45V/6.5A

260 1.61 265 1.95 270 1.7 275 1.72 280 285 1.7 290 1.58 295 1.58 300 1.63 305 1.75 310 1.75 RS4 9.5V/4.5A 315 1.78 320 1.75 325 1.61 330 1.6 335 1.57 340 1.47 345 1.51 350 1.45 355 1.42 360 1.6 RS5 13V/2.6A

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CHAINAGE Ml PSP RS5 13V/2.6A365 1.61370 1.39375 1.31380 1.22385 1.15390395 1.15400 1.22

PS5(U/S) 24.5V/18PS5(D/S) 6v/3.5A

405 1.4410 1.35415 1.51420 1.56425430 1.35435 1.4440 1.8445 1.92450 1.65455 2.05460 2.06465 2.08RS8 10V/3A470 2475 2480 2485 2.2490 2.1495 2.33

CHAINAGE Ml PSP

500 2.5

505 2.45

510 2.05

RS9 10V/2.6A

515 1.93

520 1.85

525 1.65

530 1.78

535 1.31

540 1.18

545 1.49

550 1

555 0.95

PS6(U/S) 0.97

PS6(D/S) 0.97

560 1.37

565 1.4

570 1.52

575 1.58

580 1.7

585 1.7

590

595 1.86

600 1.9

RS10 30V/1.8A

605 2.22

610 2.2

615 2

620 2

625 2.2

630 2.12

CHAINAGE Ml PSP

635 2.55

640 2.6

645 2.52

650 2.43

655 2.55

RS11 10V/1.8A

660 2.47

665

670

675 2.05

680 2.01

685 1.93

690 1.85

695 1.8

700 1.8

PS7U/S ICCP STATION OFF

PS7D/S ICCP STATION OFF

705 1.55

710 1.49

715 1.5

720 1.5

725 1.47

RS12 NO ICCP STATION

730 1.5

735 1.8

740 2.1

745 1.8

750 1.75

755 1.75

760

765 1.8


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CHAINAGE MlPSP 770 2.02 775 2.05 780 1.9

RS13 36V/1.7A 785 2.09 790 2.55 795 FOREST 800 FOREST 805 FOREST 810 FOREST 815 2.33 820 2.25 N3P NO ICCP

STATION 825 2.1 830 1.11 835 1.2 840 1.29 845 1.32 850 1.45

PS8U/S 30V/3.5A 855 2.75 860 2.9 865 2.85 870 2.72

875 2.62 880 2.43 885 2.5 890 2.5 895 2.45 900 2.35 905 2.33

CHAINAGE MlPSP RS14 10V/.7A

910 2.3 915 2.1 920 2.08 925 2 930 2.02 935 1.96 940 1.84 945 2.15 950 2.17 955 2.11

RS15 lOv/l.SA 960 2.2 965 1.98 970 2.03 975 2.01 980 1.93 985 1.9 990 1.88 995 1.9

1000 1.9 1005 1.81

PS9U/S 36V/2.6A 1010 2.01 1015 1.92

1020 1.91 1025 1.85 1030 1.73 1035 1.85 1040 1.65 1045 1.55

CHAINAGE MlPSP 1050 1.52 1055 1.55 RS16 9.SV/4A 1060 1.65 1065 1.4 1070 1.35 1075 1.3 1080 1.15 1085 1.3 1090 1.33 1095 1.41 1100 1.47 1105 1.7 1110 1.75 RS17 17.5V/

6.5 A 1115 1.59 1120 1.38 1125 1.3 1130 1.3 1135 1.2 1140 1.13 1145 1.07 1150 1.03 1155 0.9

BT NO ICCP STATION

Rows highlighted are ICCP Stations

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Annexure - B

Percentage of Pipeline Above Protection level [Main line and NSPl]

Annexure - C


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Annexure - d

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EPISodE 3

In-House Innovative design & development of Microprocessor Based Controller and I/o Card for P/l Mobile System

Preamble: This case happened in 1991. It is related to the

communication requirement of the pipeline maintenance team while

working in remote locations along the ROW of Pipel ine for

operational and safety reasons. The facility is being provided by

OIL’s mobile communication system which is a part of Pipeline

communication network and this mobile system is working in

VHF band.

The in-built system comprises of Controller, I/O modules and other

auxiliary modules. Here controller and I/O modules are microprocessor

based. This system is installed at different installations of pipeline.

When the problem arose, 70% of this system was damaged due to

severe lighting strikes. Certain portion was repairable but controller

and I/O modules could not be repaired due to non availability of main

processor. So providing mobile service to the maintenance team was

difficult. Replacement was not possible as the OEM had stopped

production of these units. This warranted complete replacement of the

system although certain portion was still usable, which involved high

cost too in terms of foreign exchange.

Mr. Nabajyoti Lahkar

Sri Nabajyoti Lahkar, BE (Elect & Telecom) is a pass out from Assam Engineering College (1988) and presently working as Dy. CE (Telecom) in PS-3, Jorhat. Prior to joining OIL, he was a Lecturer in Department of Elect. & Telecom Engg, Assam Engineering Institute, Guwahati. Sept, ‘89 onwards working as a Telecom Engineer in various capacities at OIL India Ltd in its Pipe-Line Department. He had acquired varied experiences in instrumentation, laying, maintenance of communication systems and has handled major projects. His areas of Specific Interests include - development of microprocessor based systems; interfacing devices.

Email: [email protected]; Mobile: 09435106204


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It was then decided to develop microprocessor based controller and

I/O modules indigenously. It involved designing both hardware and

software. Required fabrication was carried out following guidelines

from book knowledge using locally available reliable parts and normal

PCBs. Absence of adequate infrastructure posed further difficulties.

Pursuing tedious processes, continuous experiments the entire job

was completed within one month. The prototype modules were tested

in field situations in order to ensure functionality. After this based on

our design we got these cards (hard wires only) fabricated in India at

a nominal price. The newly designed cards were put into operation

and this way saved considerable money. During the last two decades

it provided the required services considerably.

The problem is considered unique, because when it happened, the

whole system function was affected. And there was no availability of

required parts due to stoppage of production of the required parts by

the OEM.

I. Introduction

Oil India Limited is the owner and Operator of two Pipelines laid on its Right Of Way(ROW) –a) a 1157 Kms long crude oil Pipeline from Duliajan in Upper Assam to Barauni in Bihar and b) a 660 Kms long Product Pipeline from Numaligarh in Central Assam to Rangapani in North Bengal area. State –of –the art power plant, telecommunication, SCADA and Cathodic protection systems are there in place for management and automation of these pipelines. The pipeline maintenance team, while working in remote location along the ROW OF PIPELINE, requires reliable and dedicated communication with Dispatch control station at Pipeline Headquarter for operational and safety reasons. This facility has been provided by the mobile communication system which is a part communication network of pipeline and this mobile system is working in VHF band. With the availability of modern mobile networks provided by various service providers like BSNL, AIRTEL etc communication from field improves but our mobile system is still in operation because of its availability at Remote locations.

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II. Existing Mobile Communication SystemThis system is shown in fig 1 below.

This mobile system comprises of the following equipments.

1. Radio base control (RBC 40) system installed at PHQ Radio room.2. RBC 40-13 system installed at Repeater stations and Pump stations.3. Fixed Mobile base set with antenna installed at Repeater (RS)/ Pump

stations(PS) 4. Mobile portable unit which is generally fitted in vehicle.

5. Communication system installed in Repeater Stations / Pump stations and PHQ.

Fig. I

Refer to Fig I where in set ups at one Repeater Station viz. RS-5 Jagiroad and PHQ, Noonmati are shown. In this case portable mobile unit is fitted in a vehicle along with Omni directional antenna. This antenna is fixed on the vehicle and same connected to mobile set through coaxial cable. Here the battery of the vehicle gives


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power to the mobile set. Fixed Mobile base set is installed at radio room of repeater station and antennae are fixed on communication towers of Repeater station and these antennae are connected to fixed mobile base set through coaxial cables. This base set is connected to the RBC40-13 system and this RBC40-13 unit is further connected to communication system of the pipeline. This communication system is linked to PHQ through OFC. Same set up is also installed at other Repeater Station / Pump Station of P/L depending on configuration of mobile network. At pipeline headquarter RBC40 is there in radio room with communication system as shown in Fig I and an operator console is extended to main dispatch control room.

The communication between portable mobile set and Fixed mobile base set is wireless. To establish communication from field, one has to press the PTT switch of the portable mobile set installed in the vehicle which in turn operates a switch of fixed mobile base set installed at Repeater Station. This in turn activates an identification code in the RBC40-13 system which is then transmitted to RBC40 installed at PHQ via communication system. From this code the Dispatch control station comes to know from which area, this mobile van is calling.

Similarly dispatch control station can call /select particular mobile van which operates under different Repeater station/Pump station with the help of RBC 40, RBC 40-13 and communication systems.

This Radio base control system was installed and commissioned in Pipeline as a part UHF system in 1988. This RBC system was manufactured by M/S Bayly Engineering Canada. This RBC 40-13 system which was installed at Repeater /Pump Station has different modules as given below.

• Controller module• I/O module• Radio control interface• DTMF Detector Input• DTMF Detector & Matrix• DTMF Decoder• Relay module• 4 digit programmer• Parallel to serial converter• Sequencer encoder• Line to radio interface• Power supply

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III. Problems encountered in maintenance of RBC system

Here the controller and I/O modules are microprocessor based. Other modules are made of ICs and discrete components. All the above mentioned cards together make the system operational. By 1991, 70% of the RBC 40-13 system was damaged by severe lightning strikes. All modules except controller and I/O of RBC system could be repaired by replacing the ICs & discrete components. However controller & I/O module could not be repaired due to non availability of main processor. With the damage of I/O and controller modules we found it difficult to provide mobile service to pipeline maintenance team. On number of occasions we had to transfer controller and I/O cards from one Repeater station to another station depending on the requirement. In this scenario we were left with two options –either

Replace the I/O and controller cards

Or

Replace the complete RBC system.

In the meantime we came to know that M/S Bayly Engineering Canada, the OEM had stopped production of RBC40-13 and its components i.e. controller and I/O modules. In that case we had to completely replace this RBC system when other modules were still in working conditions. This replacement required high cost in terms of foreign exchange. It is worth mentioning that we could easily repair other components of this mobile system viz. portable and fixed mobile sets at our laboratory.

IV. In house development of Controller and I/o modules

In view of above, we decided to develop microprocessor based controller and I/O modules equivalent to exiting cards with our in-house resource. Then we started our process of development that involved designing both hardware and software. The first step in our design was to define the functionality of the proposed modules. This was outlined in details. Next, was selection of components. In this case availability and sustainability of components in the market were the main criteria of our selection. In our case selection of microprocessor was very important. We went for 8085 microprocessor considering the fact it is taught at the entry level of engineering degree course which guarantees its continuation in the market at least for one decade. Similarly other components were also selected for our proposed modules. Next we prepared the circuit diagrams using data books. The circuit diagrams of controller and I/O modules are given in Fig II & III respectively and the


21

size of these cards was also decided as shown in Fig. IV so that these could be easily fitted in the slots of original chassis of RBC40-13. This step was essential for easy maintenance and operational reason.

After this we fabricated the controller card and I/O card using normal PCBs which were available in market. Once the hardwares were ready we started the programming part by making the flow chart. In 1991 microprocessor development system using in-circuit emulator was not available in our Laboratory. Even assembler was not available which would have made our task very simple. In absence such infrastructure we had to divide the whole job in several segments. Programs were written in spread sheets. In these sheets, first commands of 8085 processor were written in Assembly language and then corresponding hex codes was entered in the sheets. Finally the codes were written in the electrically erasable programmable memory i.e. EPROM with the help of EPROM programmer. This was in fact a tedious process in view of the fact that if there was a mistake in data entry in the programmer the whole thing had to be repeated. Now days this job becomes very simple due to availability of various tools for similar job. After continuous experiments for almost a month the design of these modules was complete and same was tested in laboratory using simulation techniques. Of course during this period, normal activities pertaining to maintenance of other equipments of pipeline communication system were also carried out simultaneously in the laboratory .

V. Testing of Prototype modules in field

Next we went for test run of our products in field. At that time PS6 Bongaigaon did not have RBC40-13 system. One RBC 40-13 system with our prototype controller and I/O modules, was installed at PS6 Bongaigaon. Similarly one fixed mobile base set along with antenna was also installed at PS6 Bongaigaon. With this, PS6 Bongaigaon had a similar mobile communication setup as shown in Fig.I. After this, test run was carried out to check the functionality and performance of our prototype modules in the field. After putting these modules in continuous operation for more than one month we could check its functionality, reliability in respect of its robustness and same was found suitable for our application.

VI. Conclusion

After successful testing of our prototype modules in field, Purchase Requisition (PR) was raised for fabrication and supply of controller and I/O modules, as per our design. In the first phase, we purchased 10 sets of cards wherein each set comprised of one controller and one I/O module. The cost per set was less than

22


`10,000/ (Rupees Ten Thousand only) which was nominal when compared with total replacement cost of the system. Once we received these modules, the codes i.e. tested programmes were loaded in these modules at our PHQ laboratory and then these were fitted in the RBC40-13 systems installed at different installations of pipeline for normal operation. Later on we again purchased another lot and in all RBC40-13 systems, as on date our designed cards are in use. As this was an in-house development, further maintenance of this Radio Base control (RBC) System became simple. With this we could run the system successfully till date and during the last two decades the system witnessed a no of critical pipeline repair / restoration jobs while providing satisfactory mobile communication services from fields.

Concluding Remarks: The tangible loss that would have resulted had the unique solution not generated is being specified as the total replacement cost of entire Radio Base Control System. As the team could find a solution within a definite time frame, total replacement could be avoided. This loss is not quantifiable, but it was certain a total replacement would have involved high cost in terms of foreign exchange.

Hence, the benefit out of the unique solution was obvious. The development saved money and time that would have been spent in full scale replacement. Further, it gave OIL complete control over the installed system in terms of ease of operation and maintenance without any further need to depend on outsourcing.

For future help: The application is project specific and cannot be replicated as such. But this provided an impetus to other such project specific application in subsequent period when the team designed the Tank Gauge Receiver Interface during replacement and upgrading of the Pipeline SCADA system.

The entire episode shows the confidence level of people involved in tackling a difficult challenge for a very vital requirement and taking cue from this type of initiative will certainly encourage others to take up such challenging job.

“Success is getting what you want; happiness is wanting what you get.”

– Dave Gardner


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24



25

Size

of C

ard

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EPISodE 4

From oIl PS-8 Sonapur Telecom Section

Preamble: For ensuring oil flow along the OIL pipeline, with smooth

monitoring and safe transportation, a vital service is rendered round the

year by the telecom section. So far reported availability of the service

has been 99% over a decade. However, unavoidable situations like

flash floods, unwarranted changing of river courses, landslides and

other disasters often leads to untimely and unpredictable disruption

of services. It also affects disruption of band-with services provided

to Airtel, BSNL and NRL. In these cases, emergency restoration jobs

are unavoidable, in some cases difficult situations. This is about such

a case under jurisdiction of PS-8.

The case happened on the fateful day of 15.9.12. An otherwise small

canal broke the canal bund and swept everything in its way. The

overflowing water swept away the Optical Fiber Communication (OFC)

cable causing link failure and disruption of services.

The standard procedure to restore the cut link was not workable in

this situation, a situation never faced by the otherwise experienced

team of pipeline maintenance. A temporal solution was evolved by

the team, but that was also difficult as it was not done earlier. The

ravaging canal itself was the greatest hurdle amongst others. With

difficulties the team jumped into operation at night time and completed

the temporary solution the following day by 12:50 hours and finally the

permanent restoration after another 10 days. A gain of huge exchequer

is indicated. A case of extra ordinary team work.

Mr. J N Das

Mr. Jayanta Narayan Das is presently working in OIL as Dy Chief Engineer Pipeline (Telecom) at PS-8 Sonapur. He is a B. TECH in Elect & Telecom Engg from NIT Calicut and an MBA from IGNOU. He has worked in various pump stations and Headquarters of OIL Pipeline in independent capacities and was actively involved in executing and commissioning of various projects. He has successfully completed Lead Auditor Courses in ISO 14001:2004 (EMS) and ISO 9001:2008 (QMS) from DNV.Email: [email protected] Mobile: +919933348618


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Oil India Limited, a premier Navaratna Energy Company under Ministry Of Petroleum and Natural Gas of Government of India, constantly striving ahead in Exploring and Producing Hydrocarbon and Natural Gas from Domestic as well as fields from abroad.

Oil India Limited Pipeline division remain busy in transporting Hydrocarbon as per allotted quota to the national refineries round the year. OIL Pipeline has Pumping Stations and Repeater Stations for smooth transportation of Crude Oil ( OIL, ONGCL & RAVAA fields) to the national refineries of North East region.

Pump Station No: 8 Sonapur is a Base Station cum Boosting Station situated in West Bengal at the foothill of mighty Himalayas and Kanchanjenga near to Siliguri and Bagdogra cities.

Telecommunication Section of Pipeline Sphere plays a major and predominant role in monitoring and integrity for safe transportation of highly hazardous crude oil to the refineries. Telecom provides the fully automation of pumping pattern through our internally laid integrated Optical Fiber Communication [OFC] network along our ROW [Right Of Way] commissioned a decade ago, besides lending dark fibers to service providers for business network and in turn earn revenue.

The Optical Fiber Route stretching along the Right of Way (ROW) parallel to the crude Pipeline is required to be maintained at high standards round the year for smooth and uninterruptible pumping operations. The Telecom Section with its limited resources constantly maintain the Optical Link integrity by more than 99 percent availability since its commissioning. The laid down procedures of the Preventive and the Breakdown Maintenance of the Optical Fiber Communication (OFC) Link are religiously followed and maintained at highest of standards. However due to uncontrollable parameters like flash floods, change of river course, landslides, third party cuts and other natural calamities and disaster or act of God, the OFC link reliability is compromised. Inspite of these odd eventualities and circumstances, the OFC link is restored at minimum possible time.

The OFC route and terrain under PS8 Sonapur base sector is one of the most vulnerable sector prone to OFC link breaks mostly due to unforeseen cuts during odd hours specially during rough monsoon. Even then PS8 Telecom is always ready to overcome the situation at any cost.

Since commissioning of the OFC link, PS8 Sonapur Telecom team has attended and restored innumerable OFC cuts not only under PS 8 sector directly but also has supported PS 7 Madarihat, RT Rangapani Terminal and PS 9 Dumar Pump Station

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in time of need. These frequent cuts and restoration of OFC link has in one way build up the confidence and experience of our dynamic, highly motivated, dedicated and energetic workforce.

Every year during the monsoon season, the Telecom section has to remain vigilant as the rivers in the Dooars region flowing down the Himalayas and Bhutan are always changing courses not only damaging the OFC routes but also causing great losses to public life and property. More importantly Oil India Ltd had leased pair of Dark fibers and bandwidth services to AIRTEL, BSNL Siliguri and NRL Siliguri Receipt Terminal long the same OFC cable.

On the fateful day of 15-09-2012, the Gheesh river flowing down the Dooars regionue to perennial rainfall overflowed. The otherwise small Canal in the Andhajhora (PL KM Chainage 784 near NH 31) and barely 1 Km from Repeater Station 13 Odlabari region connected to the Gheesh river was protected by a small bund. After the canal bund protecting it gave way, which until then the water level of the Andhajhora canal never exceeded 1 metre in depth, suddenly the water current and volume increased sweeping everything it could find in its way. The submerged portion of the canal where the ROW crosses, was hardly 20 feet wide and 3 feet deep could easily be crossed earlier on foot, which was then converted to more than 200 feet wide and 10 feet deep resulting from the water gushing out from river Gheesh. The banks of the canal were overflown and the houses and settlements besides the bank were submerged and washed away.

Small Andhajhora canal turned out to be a mighty river overnight with high water current stream and highly unsafe to work. The OFC cable was totally washed out resulted in Communication (link) break with the rest of the Pipeline sector around 0930 Hrs. And also the services to different customers were disrupted.

For any link or communication break which is clearly evident at Master Control Station , PHQ, Noonmati, the Shift Engineer present at duty informed the respective Telecom –in – charge or Station – in – charge of the possible link break. As usual when the Telecom PS 8 Installation Manager was informed of availability of data till RS 13 Odlabari, immediately arranged and sent a team to locate and rectify the OFC cut area. When the PS8 Telecom team reached RS 13 and found out the possible optical distance break from RS13 within 1km from RS13 towards Rangapani Terminal, it was concluded that the Gheesh river had swept the cable and ruptured the optical fibers carrying both ours and business link.

As a standard procedure for any OFC cut, the cut ends are identified and spliced at both ends keeping some OFC cable looped in an enclosure inside a RCC chamber


29

5-6 ft deep at either ends. But in this case, the cut ends could not be found as it was submerged inside the voluminous and high current water. It became a great concern or the team to restore the link as such a grim situation was never faced before. It was decided by PS8 to lay an overhead OFC from RS 13 (PL KM Chainage 783) to the nearest OFC chamber (PL KM Chainage 786) which was 3 km apart to restore the link temporarily to overcome the situation. Such a long stretch of overhead was never laid before and also the overhead by no means could be laid across the ravaging canal. The team had only 1000 meters of OFC and so another roll of 2000 meters of OFC and other OFC accessories were immediately dispatched from PS8 to the site through alternate route as Sevoke Road was closed due to landslide and torrential rain. The displaced people around the Andhajhora area were shifted to NH31 with few belongings whatever they could save. The NH31 was overcrowded and hence the restoration job could not be carried out during daylight. The team waited till midnight quenching in drizzling rain, so that they could carry out the laying of Overhead cable without much interference. The team comprising of 11 members including 7 labors started the job. As the Local authorities from Maalbazar and Odlabari sub-division were engaged with he rehabilitation of the displaced people, the few labors that could be arranged were engaged by them and no extra workforce could be hired. The Team laid the overhead OFC cable supported along the Roof tops, Trees, Electric poles, Petrol Pump Boundary wall, Telephone poles and Street lamp posts along the NH31 fastened with GI wires. The OFC from RS 13 (Fiber Termination Box) to the next chamber had to be spliced (connected) at 4 places ---- two for the two ends and two for joining the OFC cables in between. With much effort and labor the OFC cable was laid and temporarily spliced for live and business fibers and at both ends with Jointing Kits hung overhead covered with a polythene sheet to save from continuous downpour. The communication link was temporarily restored the following day on 16-09-2012 around 1250 Hrs with outage amounting to 1640 minutes. The whole team did a commendable and challenging job totally drenched at night downpours.

Total materials used or expenses incurred

1. OFC 2KM DRUM + 400 M + 500 M = 3KM (aprrox)

2. Jointing Kits : 2 Nos.

3. GI wire : 10 Kg

4. Misc Expenses : Labours cost, bamboo poles, fooding and other expenses.

5. Transportation of materials.

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Daily supervision by ROW patrol Party was carried out to look after this 3 Km overhead cable until permanent restoration of OFC route was done. After two weeks, when the river water level subsided, site preparation was started for permanent restoration on 25-09-2012 across Andhajhora. The rehabilitation of the displaced people and the strengthening of the river banks with boulder sausage were going on by State Government agencies. Hence Excavators for carrying out trenching could not be found, as most of them were engaged by the local authorities .With much difficulty a party agreed to provide one POKLAND Excavator for 4 days with much higher rates.

Open cut trenching across Andhajhora diverting water flow on 50/50 basis was done . Across the river 4-5 feet depth maintained from river bed water level and on either side of the banks 8 feet deep maintained. Splicing chamber were placed 20 meters apart on either sides of the canal. Two nos. of HDPE ducts were laid including the stand by Duct as standard followed. A good amount of Loop of OFC kept on either sides of the Splicing Chamber. OFC passed through HDPE DUCT which passed through 100 mm dia GI pipes and further covered with 6 inch CC Hume pipes as an additional layer of protection.

Meanwhile on 26-09-2012 NH 31 was totally collapsed and cut off at the approach of the Juranti river Bridge (PL KM 789) due to flood and natural erosion. The PS 8 Team and the materials had to be mobilized to the site through alternate route along Teesta Barrage and deplorable road condition. Splicing of all the 24 fibers were done on either sides and services transferred from 3 KM temporarily laid Overhead to Underground OFC route with minimum downtime on 28-09-2012. Total Outage due to services transferred to Underground OFC route was 114 minutes from 1419 hrs to 1613 Hrs on 28-09-2012. Prior to transfer of services permanent layout of OFC carried out to minimize downtime.

Materials used for permanent oFC link restoration

1. HDPE Ducts =200 Metres [Yellow : 100 & Green : 100]

2. 4” GI pipes : 10 Nos = 63 mtrs

3. 6” CC Hume Pipes:6 pcs = 12 mtrs

4. CC Splicing chamber : 2 Nos. and 4 Nos. Lid

5. CC Marker posts for OFC : 2 nos.

6. Flat Electronic Markers : 2 Nos. for each Splicing chamber

7. Jointing Kits : 2 Nos.

8. OFC Cable : 315 Mtrs divided in 2 laps with loops across the canal turned river.

Total Outage due to Temporary and Permanent restoration = 1754 minutes


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Services affected : OIL Pipeline Voice and Data Communication, IOCL GSPL Communication, AIRTEL, BSNL and NRL Communication.

Here PS8 Telecom, a dedicated team achieved successfully in restoring the OFC link on 16-09-2012 extending a challenging task maintaining high safety standards, looking into the grim and grave situation of the ground realities and the surrounding environment with full sincerity and in turn saved a huge exchequer from OIL internal communication and from the business service providers.

The tangible losses cannot be accounted accurately as numerous inherent costs are involved which cannot be segregated . However an approximation can be made n the bills supplied by contractor and resources required for carrying out both temporary and permanent restoration and the costs involved for daily supervision until permanent restoration.

The contractor amount can be deduced or evaluated from SES No. 100286644 @ Rs. 66,909 dtd 05.10.2012.

Total Materials used for restoration costs around Rs. 30,000

Cost involved during daily supervision for 10 days : Rs.10,000.

The total losses could be approximated had there been no washout to be Rs. 1,07,000.

The tangible gain as such cannot be directly monetized . However effort has been made to account it as accurate as possible. The link failure between any station cuts off the communication entirely between the rest of the pipeline. Any link failure could result in catastrophic event due to inability of co-ordination between pump stations which is very much essential for safe and reliable pumping operations . In event of any catastrophic event the pumping has to be stopped, resulting in a huge loss of revenue perday for inability to pump crude oil (and product to Rangapani Terminal, NRL, Siliguri Terminal) to designated refineries. (Actual loss amount is ascertained from Oil Movement Section of Pipeline HeadQuarters) which comes out to be enormous and also national loss. And the businesses of the customers like BSNL and AIRTEL are affected though loss due to unavailability for providing services are less but Quality of Service and reputation of these companies are affected which are intangible losses.

IMPoRTANT NoTE :- Here in this case, the way PS8 Telecom team looking into the precarious and grave situation and working like a war footing way, restored

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the OFC Link with all Voice, data and business services at the least possible time is more important in value than quantified monetary losses. Here compared to money, RESTORATION DOWN TIME LOSS is more added to value as a tangible gain. This case as an exemplary and a footprint in the record of OFC link restoration under PS8 Sonapur Telecom.

The preventive maintenance of OFC route is carried out religiously and monitored directly by the Installation Manager himself. But such unique event can’t be ruled out as human influence on such natural calamity is limited. However for such eventuality the Workforce is required to be a very alert and it should be ensured that all possible resources required for mitigating such event are readily available.

Before Washout/Normal OFC Route


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After washout

Temporary Link restoration through Overhead OFC cable (dotted lines)

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Permanent Restoration of OFC across the canal through GI pipe

“The Chinese use two brush strokes to write the word “crisis.”

One brush stroke stands for danger, the other for opportunity.

In a crisis, be aware of danger--but recognize the opportunity.”

– John Kennedy


35

EPISodE 5

dealing Problems Related to drilling Rig EquipmentThree typical cases are referred here very briefly related to drilling rig equipment

Problem-1:

Frequent wear out / mud cut of valve cover gasket as well as sealing areas of fluid end (module) of A 1400 /1700 PT mud pump in drilling rigs . This problem led to increase in shut down of drilling operation, overtime and mileage (if it occurs at odd hour). In deep drilling wells, this problem is more frequent due to rise in temperature of mud.

Solution: The above problem was a unique operational problem and it was solved by the following ways-

i) Changed the material of the valve cover gasket, i.e from nitrile rubber to Carbo- oxylated nitrile rubber which can withstand higher temperature as well as higher wear resistant.

ii) Increased the thickness of the valve cover gasket i.e from 8.9 mm to 9.3 mm

• Tangible loss of drilling metreage due to shut down of drilling operation, Increased expenditure due to overtime

• Thus the problem was solved by taking one time appropriate actions. This is not included in SOP because this is not a procedure. It is about one time actions that solved the problem for ever.

• Tangible gain: There is no down time for this vital equipment in drilling well and no expenditure due to overtime etc. after adoption of the solution.

• Probable application area: All types of mud pump used in drilling Rigs

Mr. Swadesh Dey

Mr. Swadesh Dey, joined OIL in 1980 as an Executive Trainee after graduating from Assam Engineering College, Guwahati as a Mechanical Engineer. He has worked in various exploration camps after a brief stint at Digboi Oil Fields (1982-1984). Presently, he is officiating as Head-Drilling (TS).

Email: [email protected]; Mobile: 9435038456

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General Remarks: as an after action of the learning specification of the material was changed both in terms of dimension as well as material of construction.

Problem - 2

Frequent damage of Fan shaft bearing of D 399 Caterpillar Engine (power pack). The process of replacement of fan shaft bearing requires tremendous efforts and time consuming. This resulted not only increase in down time of power pack (Rig Engine) but also result increase in overtime.

Solution: The above problem was solved by the following ways

i) Used water resistance and high quality grease in place of MP grease.

ii) Selected better quality of pedestal bearing by changing the specification, identified source, terms & conditions during the procurement process of bearing.

• Tangible loss due to the problem- loss of drilling metreage due to shut down condition of the power pack.

• Tangible gain out of the solution: There is no down time for this vital equipment in drilling well and no expenditure due to material, overtime etc

• Probable application area : All power packs used in drilling Rigs.

General Remarks: Replacement of bearing of Caterpillar Engine fan shaft is a job of huge involvement, sometimes it takes whole day for 5/6 persons. With the above solution the problem got solved permanently, the problem does not recur now.

Problem - 3

Unscrewing of piston rod frequently from the crosshead of duplex double acting Rig pump of its own when the pump is in operation even after having check nut, resulting in shut down of rig pump and hence rig hours.

Solution: Above problem was rectified / solved permanently by putting a layer of Thread Lock Compound on the threaded position of the piston rod and fixing the same in the crosshead.

General Remarks: For the above problem initially we did not have any solution, however innovative idea worked here. It took only few minutes to rectify the problem. This problem occurs in old reciprocating pumps where crosshead thread gets worn out.


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EPISodE 6

dealing an Unjustified Claim and Winning over a legal Battle.

Dr B N Sahoo

Preamble: This episode is related to a case lodged by a local

complainant related to OIL’s operations at Moran. It was a false

complaint alleging damage of tea sampling due to flaring and leakage

of chemicals from OCS. After proper enquiry complaint was found to

be unjustified. Complainant legally fought the case up to Gauhati High

Court. Finally OIL won the case and it saved the company’s money to

the tune of INR 17,00,000/-. Knowledge of the case might help others,

specifically those who are involved with field jobs.

Incident

Complainant (name withdrawn) alleged damage of Tea sampling due to flaring & leakage of chemical water from Moran OCS. After a preliminary joint assessment conducted by S&E Department, the claims were found to be unjustified. However, the complainant sent legal notice for compensation payment to us and appealed to the Circle Officer, Mahmara Circle, Pollution Control Board, Assam. Our reply to the legal notice was given. Since the party was not satisfied with our reply, the case was filed by the complainant in Gauhati High Court.

Steps taken

1. Immediately assessment teams from Legal, Moran OCS and S&E Department carried out inspection of the site. The claims were found not genuine and the same was communicated to the complainant.

2. Proper documentation of evidences, showing no damage of tea samplings were taken and recorded.

Dr. B.N. Sahoo is presently officiating as Chief Engineer in the Safety and Environment Department of OIL.

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3. Proper facts and figures were presented to representatives from PCBA and Addl. Deputy Commissioner, Sibsagar scrutinizing the case.

4. After pursuing the case for two years, OIL won the high court case and saved the company `17,00,000.00 from the unjustified claims of the complainant. The case was won due to the diligent team efforts shown by working continuously towards safe guarding company’s integrity and ethics.

lessons learnt

1. Compensation cases to be handled very meticulously. No compensation should be given for illegal claims of complainants even after pressure from pressure groups.

2. All concern departments should take photographic evidences of alleged damage area immediately on receipt of complaints for future reference.

Concluding Remarks

Probable Application

The case has thrown light on the importance of keeping proper documentation of complaints such as photographs, minutes of field visits to be used as genuine evidence, if required. Knowledge about the case might help others, specifically those who are involved with field jobs.

“Nothing great has ever been achieved except by those

who dared believe that something inside them was

superior to circumstances” – Bruce Barton


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EPISodE 7

Modifications of Steering System of Chinese Make RG Series Work over outfit

Mr. K Loganathan

Preamble: A major problem happened due to premature steering

pump failure of the power steering of a Chinese make Work-over Outfit.

Chinese make spares were not available; Indian agent became non-

responsive, absence of technical leaflet or product catalogue to raise

indent. Unavoidable problem, no immediate solution was there. The

situation led the department to analyse the actual system. Diagnosis

& scarcity led to a search in the scrape yard. Operational units was

searched out and with certain technical modifications, the entire outfit

was made operational. The heavy duty outfit in its first trial successfully

covered a 50 KM journey.

Outfit was out of operation for three weeks. When problem got rectified,

cost saving in terms of the redesigned unit is stated as INR 6 Lakhs;

and saving of downtime of 1 year for the outfit. Finally, for the modified

unit, availability of spares has become easier. Immense help in terms

of reference to others facing similar problems is expected.

Problem Encountered

The work over outfit RG - E (OIL 5121) developed major steering problem due to premature failure of the power steering. The outfit was immovable due to steering problem and was out of operation for about three weeks.

Chinese make spares were not available in India. The Indian Agent also did not respond to our request for supplying spares. There was no technical leaflet or product catalogue to raise the indent.

Mr. K Loganathan is presently officiating as Head, Transport, Duliajan. He has facilitated in forwarding the successful episode as an outcome of a Team effort of the Transport Department.

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Analysis of the problem

The system used by the manufacturer was basically a worm nut type steering gearbox assisted by a hydraulic system. The worm nut materials were found to be soft and the re-circulating balls came out through a widened gap resulting in extreme steering problem.

Solution of the problem

As there was no immediate solution, it was decided by us to replace the power steering gearbox with a modified new steering system based on hydraulically assisted rack & pinion system. We visited some of our old scrap work over units of Skytop make and extracted some usable spares like steering gearbox, drop arm, control valve etc.

We serviced the units and found them to be operational. We then made a torsion bar properly machined in our workshop and connected it through a bevel gear assembly with the rack of the steering gearbox. A directional control valve was fitted near the drop arm ball end along with the drag link. The output lines of the directional control valves were attached to the hydraulic lines of the power cylinder. The input to the directional control valve was taken from the hydraulic tank.

After all the modifications and bleeding the system, we tested the unit and found the steering system working satisfactorily.

The work over unit was finally make operational and was transferred to Chabua about 50 KM from Duliajan without problem.

Concluding Remarks

(i) The similar modified system can be used in other work over outfits in case of emergency.

(ii) The availability of spares of the modified system will be easier,

(iii) Immense help in terms of reference to others facing similar problems is expected.


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EPISodE 8

A Big Challenge Undertaken by oIl Management to Streamline Medicine Procurement System Through Materials department

Mr. Dulal Bhattacharjee

Preamble: This write up is based on contributor’s involvement in the

issue of “how the process of procurement of medicine was transferred

from Medical Department to Materials Department” consequent upon

internal audit objection. He has tried to highlight the transition story.

It basically came to his mind when one Senior Purchase Officer in

Kolkata Office asked him about how medicine purchase came to the

purview of Materials Department. The contribution is purely based on

memory only.

Prior to 1992-93, medicine purchase was made directly by the Medical

Department; the volume of purchase was quite substantial. Stated

direct purchase cost was around INR 3.0 crores. At one point of time

company decided to change the purchase procedure through tendering

process bringing in transparency. A big challenge was entrusted to

the Materials Department for the changeover as there was already

overload of jobs and the new job required extensive involvement.

Finally job was undertaken, and a streamlined process established

through meticulous planning and committed involvement. Initial

estimated gain was around Rs. 1.50 crores. Uniqueness is evident

since the big challenge was unexpected on part of the contributor as

well as for the department at the time of happening. It was a solution

to an unusual situation, turned out to be a successful one.

The contributor of the case is presently working as Senior Manager-Materials in OIL’s Kolkata Branch. The case belongs to a time when he was posted in the Materials Department, Duliajan.

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OIL INDIA LIMITED from its founder inherited the mantra of ' healthy employee for healthy organisation' and therefore health care of the employee is as always of high importance. An OIL set up is generally having a built-in medical facility. The Field HQ of OIL is at Duliajan having a well equipped state of the art Hospital for its employees, dependents, families and resident public. Obviously the cost of maintenance is quite substantial and a good part accounts for medicine.

Prior to 1992-93, medicine purchase was made directly by the Medical department itself and purchase was more or less like spot purchase. The volume of purchase was quite substantial and no one ever thought of interfering in the activity of Medical because the department deals with most vital aspect of Life saving. But with time any system gets affected by virus if the regular checks and balances are not put in place.

The Internal Audit report understood to have stirred enough to pursue OIL Management to take a call on the issue and series of meetings of all high officials were taking place in the Mini conference room. What we could gather was that total value of medicine purchase was quite high, of the order of Rs. 3.00 crores per annum. However, no tendering process was followed. Purchases were made at MRP rates, No proper check on expiry dates and there was allegedly no transparency . So there was enough ground for suspicion, right or wrong.

It was learnt that Head of Materials Department, Mr. J K Talukdar was requested in the meeting by the then RCE, GM (F&A) and the Head of Internal Audit to take over medicine purchase. However, he expressed his reluctance citing that the Department was already overloaded. However, Mr. Talukdar finally agreed to give a try to the personal request of the then RCE, Mr. N N Gogoi subject to a few conditions. This personal agreement between RCE and CMM was only known when I was summoned by Mr A K Khatoniar, the then CMM (Purchase) who advised me to meet the HOD, Mr. Talukdar who gave me an idea about his plan and asked me to meet him for medicine purchase jobs only during lunch breaks. It was a challenge thrown to me and I accepted the same in right earnest because I knew that it was a great opportunity for me to learn something more.

My HOD made it clear to the higher Management that for purchase of medicine through Materials Department:

a) A fast track approach will be initiated and the normal purchase procedure will not be feasible to be followed.

b) Tendering process to be made only once a year.


43

c) Indent for one year's approximate requirement to be furnished by medical Department

d) Medicine required should preferably in generic names etc.

In a meeting attended by the then DGM (C&P), Head of Internal audit, GM(F&A), CMM, CMO and myself; CMM explained his views of the proposed policy for procurement of Medicine thru tendering norms. Minutes of all such meetings were prepared by me. The details of the new policy are being elaborated at a later stage.

But before that all the manufacturers of medicines in the country like Glaxo, Ranbaxy, Ciba Geigy, Torrent etc. were approached by us to confirm their readiness to supply medicines for our hospital in a phased manner to meet our requirements throughout the year. The manufacturers, in response, gave us the list of their C&F agents, distributors, authorised dealers etc, in northeast India, mostly from Dibrugarh, Tinsukia and Guwahati who are authorised to supply medicines to Hospitals on behalf of the manufacturers. I was advised to meet the dealers in Dibrugarh and Tinsukia and discuss about the nitty gritty of medicine supplies to Hospitals. During the interactions, it emerged that medicine manufacturers do maintain different rates for bulk supply to different category of organisations. They had Institutional supply rates for registered Hospitals, Wholesale rates to Dealers, trade price to retailers and MRP etc. This vital information made our life easier in terms of genuineness of price of medicines because all prices are related to the batch no. of production. In fact Institutional supply rate was cheapest of all.

But when 'RIGHT PRICE' factor was resolved, the next question obviously comes what will be the right source and how to select the source amongst so many dealers. Mr Talukdar decided to call all the dealers/distributors in the region in a meeting to know more about the subject. Accordingly, the meeting was organised and open interactive session followed. The parties were explained the following four points and sought their acceptance to make the system transparent and full proof.

1. Since the rate of medicine is fixed by the manufacturers for hospital supply all parties have to submit their quotation/bill with the manufacturers' price list duly vetted by the manufacturers.

2. Since the rates are common for a particular product, bidders need not quote any rates against the tender, they have to offer a discount on the fixed rate and whoever will quote, the highest discount will be rewarded with the order.

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3. The dealers must undertake that the medicines at the time of actual supply have at least 50% of the total shelf life available with the receiver.

4. The delivery of the medicine will be routed through the receiving section of Materials Department to check the quantities & date of expiry. All receipts will be witnessed and certified by the representatives from Materials, CISF/Security and Medical Deptt.

The above points were adequately discussed in the meeting and minuted where all the parties appreciated the logic behind it and confirmed their supports and participation.

Finally, the matter took a positive shape and decided to launch the first action. Around 130 tenders were floated manufacturer-wise with all dealers. The NIT terms and conditions were different from usual ones and all the important features were formulated under the guidance of Mr J K Talukdar. There was favourable response from all bidders and the discounts offered by the bidders were varying from 2% to 8% and in case of saline, I remember it was as high as 35%. The tenders were roughly for one year's requirement but the supply was to be made throughout the year against delivery orders as per the requirement of Medical department issued from time to time as and when required. However for emergency situation, Medical department could buy the medicines directly from the dealers.

I still remember that the huge tabulation of offers was made by me and all the orders were recommended in favour of 20 to 30 bidders item-wise on merit. Total value of purchase was about Rs. 1.50 crores. There was a considerable amount of savings in costs. Normally, yearly consumption of medicines was about Rs, 3.00 crores. It was huge blow to one or two party who used to supply earlier but joy for 20/30 bidders as the process was an eye opener to all of us. Everyone be it gainer or loser appreciated the process as it was all along TRANSPARENT.

Concluding Remarks

The gain factor indicated in the story is as under :

The case highlights basically the process part, and is based on contributor’s memory only; hence record of estimated loss prior to changeover could not be ascertained. But a gain has been indicated with the analysis of the cost of purchase which is mainly on two counts (1) quantity of purchase (2) the price of item. Rate was earlier on the basis of MRP. When changed over to procurement through tendering took place, it was on the basis of ‘institutional supply rate’ or Trade price which became lower than the MRP.


45

Then there was discount on above rate. So resulting rate became cheaper than earlier.

Secondly, Buyer was directly receiving the medicines. But after changeover, receipts were thru Materials in presence of representatives from Medical & Security/CISF department. Hence there was proper check both in regard to quantity and shelf life of medicines at the time of receipt.

Initially, there was no tendering so there was no competition, it was just spot purchase. On the other hand, with the new initiatives a very sound process established by which there was gain in the price factor i.e. buying at institutional supply rate in place of MRP and on the top of it discount earned by generating competition through tendering as well as streamlining the receiving part of the medicines which ensured right quantity and right shelf life availability. These were the major gains stated.

It was a solution to an unusual situation, turned out to be a successful one. The contributor wants to give credit to the then HOD who responded positively with analytical approach for the need of the hour and introduced a transparent policy with active participation of all involved.

“Life is 10 percent what you make it, and 90 percent how you take it. “

– Irving Berlin

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EPISodE 9

Unexpected Bursting of SMF BatteryMr. Arun Kumar Dutta

Preamble: This unprecedented incident happened on 30th August,

2012. There was a sudden burst of one of the batteries of the DG set,

which is of SMF type, i.e. sealed and maintenance free. Although no

fault on maintenance part, the malfunctioning of the safety release

valves of the battery resulted into the incident. Fortunately in the

incident a human life was saved. A technical enquiry resulted into

certain recommendations for such volatile items which are widely

used in most of the OCSs, GCSs and other critical applications. This

case highlights need for extra attention for possible design fault or

malfunctioning of volatile items.

On 30th August, 2012 at 10:00 am at Moran Power Station, while starting emergency DG set for testing purpose, one of the 2 nos. batteries (12V) burst with big sound and inside acid of the battery came out. Fortunately on the spot batteries and starting switch of the DG set are in the opposite sides of the DG set. As such the person who was starting the DG Set did not come in contact of acid that came out from the battery after burst. DG set itself saved the operator from the contact of acid. There was no human injury and damage to the equipments/machines other than battery itself.

Details of the damaged battery along with few photographs are annexed herewith.

The incident was independently investigated by Mr. Biswajit Das, Sr.EE (Gen - Moran), Mr. Bikash Bharali, Sr. Engr (Field Engg. - Moran) & Mr. B.J. Gogoi, Sr. EE (Gen - Moran).

Mr. Arun Kr. Dutta was officiating as Head Electrical (E&P Operations) at Duliajan while forwarding the contribution. He has now superannuated from the services of the company.


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Investigation Report

• ThebatterythatburstinMoranPowerStation(MPS)isaSMF(SealedMaintenanceFree) battery. These are not fully maintenance free batteries. As per OEM manual distilled water needs to be topped up after 6 to 9 months depending on the colour of Charge Eye (level indicator) fitted on the top of battery. The new battery was put on service around 6 months back and colour of Charge Eye (level indicator) found green. This means the battery was not due for distilled water top up.

• Becauseoftheelectrolysisofwaterpresentintheelectrolyte,batteriesproducehydrogen and oxygen gas. This process is known as ‘gassing’. This type of cell recombines any hydrogen and oxygen produced inside the cell and maintains water level intact. Since these batteries are completely sealed no gas comes out of the cell in normal situation. Therefore in normal situation if any spark occurs at the battery terminal it should not cause any explosion as spark will not be able to travel inside.

• Asperroutinepracticewealwaysputbatterychargeroffabout15minutesbeforestarting of the DG set. The bursting not occurred during charging of the battery; rather it happened during discharging (Cranking time of DG set).

• Thebattery isof150A-Hr ratingandasperOEMmanual thesebatteriesmaybe charged at 10 to 15% of battery capacity. That means at the rate of 15 to 22.5 Amps. In our case batteries are charged at the rate of maximum 10 amps & at maximum set voltage of 25 Volts and charger remains under tickle charging mode. Therefore there is no chance of overcharging of the batteries.

• Thebatteryhastotal6cellsandtherearetwosafetyreleaseplugs,oneeachforevery three cells. Please see the photographs of the bursting battery (annexed) for more clarity. These plugs should operate in case of development of abnormal inside pressure and before occurrence such burst. Function of these plugs is similar to the safety relief valve in any pressure vessel.

As visible in photograph (annexed) of MPS incident one of these plug though moved partially but failed to open completely before occurrence of burst of battery. This is the root cause of this failure. It seems this is a manufacturing defect because these plugs are factory fitted only. OEM manual is also silent on the calibration/ testing of these safety plugs. The matter may be rightly taken up with OEM from the safety point of view.

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As visible in the photographs (ref. Annexure), these plugs are located in such a position that chance of accumulation of dirt and debris is minimum. However along with these batteries OEM has also not provided any information about the way of taking care of these plugs.

Moreover design of the gas pressure release line (inside the battery) which leads to above mentioned plug is such that it is always not a through pass of gas; it depends on the tightening of the cork meant for distilled water pouring. Photograph (ref. Annexure) showing the hole just above the thread of the cork may be referred in this regard. In our opinion design of the corks and gas pressure release line need some better design considering safety from similar burst. Matter may be taken up with OEM.

Recommendations in General

1. Batteries should be always placed at a distance in a safe place considering occurrence of such burst.

2. Batteries may be put inside suitable box. However, the box should have sufficient ventilation to prevent accumulation of any hazardous gas inside.

3. While procuring such new batteries, such incidents should be kept in mind and OEM’s recommendation may be sought.

Final Comments

The battery was SMF type and was not supposed to be attended for any maintenance. OEM recommends, only topping up of distilled water depending upon the color of the level indicator. Had this incident not taken place the problem due to defect in safety release plugs of the battery, could not have surfaced out resulting into the safety recommendations for such cases. Hence, the problem is unusual.

outcome of the typical solution:The recommendations will increase the safety to human beings and other material loss if such incidence reoccurs again. Moreover after this incidence FE Dept. has decided to use higher capacity battery (180 Amp-Hr.) now in place of 150 Amp-Hr for such DG sets. The resulting gain will be safety to operators and their co-workers (Human beings) who are involved in operation of DG sets etc and avoidance of other losses. Moreover with the use of increased capacity of battery, reliability of DG sets will increase and such incidence will decrease. DG sets are widely used at most of the OCS and GCS and for several other applications in our company. As such awareness about occurrence of such incident is necessary and by adopting


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the suggestions any injury to persons under such accident in future can be avoided. Solution as provided in the form of recommendations is good enough to avoid injury to person under such happenings. Formal reporting of the incident to S&E Department was done immediately after the happening. Since DG sets are being looked after by FE Dept., representative from FE department was also involved in the enquiry. Now, power station batteries are kept inside a wooden box as a precautionary action to avoid human injury. There is no empirical formula for safe distance; however, 2/3 meter of distance would be good enough. While maintaining the safe distance connecting cable to battery should be protected against mechanical injury and against the fall of persons. Wooden box is good enough as suitable box. Size of the box would depend on the size of the battery.

data of the burst battery

Make: Cummins ; Battery No: 508117-10814; Model: TRUSTART Automotive Battery

Part No: AX1013421, 12V 150 Ah; Month of Manufacture: 08/2011

Net Weight: 46.2 Kg; Manufactured at “ Amara Raja Batteries Ltd.”

"Knowing is not enough; we must apply.

Wishing is not enough; we must do." – Johann Wolfgang Von Goethe

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Fig – 1 & Fig – 2: Photographs of the damaged battery

Fig – 4: Position of Safety Relief Plugs in the battery

Fig – 5: Pressure Release Line (for movement of internally produced gas) which leads to

Safety Relief Plugs

Fig – 3 Safety Relief Plugs. One plug has moved partially but failed to open completely causing battery to burst


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Fig – 6: Pressure release line passes through the Corks which are meant for topping up of water in the battery

Fig – 7 & 8: There are two holes on the sides of the cork, which are supposed to set aligned with the Pressure Release line, so that internally formed gas gets a thoroughfare. Holes will not set aligned if the cork is not tightened correctly to the position

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EPISodE 10

A Unique Troubleshooting Wit

This unique challenge was faced by the contributor during the advent

of the ‘SERVICE ENTRY SHEET' in the SAP system, while processing

of payment through LIV document. He adopted a technique that proved

to be very effective and innovative.

With the advent of ' SERVICE ENTRY SHEET' in OIL INDIA ltd. in a bid to phase out the contractual payment through FI module and encourage the processing of payment through LIV document, we were in a disarray at the cross-road of transition time as nobody could help me out. The problem became more critical in respect of processing of 'car rental contract bills' with the amendment in Service Tax Rules w.e.f. 1st July, 2012 under 'Reverse Charge Mechanism' where the onus of 40% of Service Tax liability is imposed on the 'Receiver of Service'. I was in a fix on what to do to insulate the element of car parking fees from the ambit of service tax because Service Tax is not applicable on parking fees, which is paid first and claimed later for reimbursement against submission of documentary evidence. Then I hit upon an idea. I segregated the total amount of parking from the hiring charge of light motor vehicle bills and booked the same by debiting under a separate G/L account, which I removed from total hiring charge bill in order to avoid the Service Tax liability on parking fees. This technique proved to be very effective, innovative and paved way for hassle free processing of bills for light motor vehicles.

Mr. Soumendra Kumar Choudhury

Mr Soumendra Kumar Choudhury is presently employed at OIL’s Kolkata Branch as Manager (F&A) with 13 years experience in OIL. His academic/professional qualifications include a B.Com (Hons.); FMSPI (Finance); FCMA; CS (Inter). He has prior experience of 8 years in two other industries. His achievements include winner of State Award in 1995 and National Award in 1997 as the BEST DISABLED EMPLOYEE.

Email: [email protected]; Mobile- 9903033260


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The outcome of the typical solution:

The unnecessary financial outgo of service tax on car parking fees have been done away with because it is an item of reimbursement and does not come under the ambit of service tax. The entire mode of calculation has been captured in the xls format which requires only the input data to arrive at the net amount payable to the vendor, on average 15 to 20 car rental bills are processed during the month. With the implementation of the solution, processing of car rental bills has become much easier in the xls format. The contributor expects that the The methodology would be of great help for future use in respect of processing of any service oriented bill.

“An enterprising person is one who sees opportunity in all areas of life.”

– Jim Rohn

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EPISodE 11

Women Empowerment at Gandhia

Preamble: It’s a case study of women empowerment which got

generated as circumstance demanded and due to application of

thought process in a different direction. The place is called Gandhia,

a village, which accommodates (4) four oil wells in Panitola area of

Tinsukia district, upper Assam, nearly 40 kms away from Duliajan

township, the field headquarter of OIL. Perennial local problems

were created in the area during 2006-07, when the first completed

well started producing crude oil. Getting sight of viable solution was

next to impossible as the problems creators consisted of a sizeable

portion of the local populate. Women power of the local women folk

gave the solution, when they were encouraged to come forward to

take responsibility of security and serenity of the area influenced by

emotional intelligence ability of the dealing officials concerned.

Problems encountered by the company were varied like frequent stoppage of crude oil bowser movements, obstructions to ongoing activities for setup of EPS. Even after setting up of the EPS and the associated crude oil pipeline, flow pipes were cut. As a result unwarranted oil leakage took place creating administrative problems as well as environmental issues. OIL professionals including security people were obstructed in many occasions hampering work progress at various times. At certain times security people had to resort to blank fires for disbursing violent mobs and for self-defense. The nagging problem remained for about one year. The security measures adopted at that point of time proved to be less effective as because miscreants were mostly

The contributor is presently officiating as Chief Manager, Security, Oil India Limited, Duliajan, the main architect of the entire episode. A Bachelor of Arts Graduate, Sri Baruah is having experience of 22 yrs in OIL. Job profile includes experience in security and administrative matters in various capacities in Central Govt. as well as Public Sector Undertaking. Prior to joining OIL, he was a special security officer to the Prime Minister of India.

Email: [email protected]; Mobile: 9435038605;

Mr. Prasanta Kr. Baruah


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from the local community. Even after gaining community help from OIL in regard to upliftment of facilities like schools, temples, community halls etc., a certain portion of the local people appeared to be on the lookout of creating problem. So, in spite of deploying local youths as security guards, cases of thefts, miscreant activities could not be averted. At certain point of time the situation appeared to be out of control. OIL’s security machinery was almost at a loss in order to find out a way out to ensure smooth flow of producing OIL.

The helpless situation compelled the people concerned to think differently. A new strategy evolved wherein it was decided to have a face to face interaction with the women community of the village. With due consent & help from the local police authority, a sizeable population of the village women folk along with the village head sat together. The impact of the happenings was explained threadbare. It was appropriately clarified as to what was happening at that point of time was in fact very much detrimental in regard to progress of the whole village community. Very politely and amicably it was explained to them that their own child are going to be affected because of the ongoing miscreant activities and the disturbances created by some of their own people. It was like showing the clear picture of the implications in advance and the impact on their future generation. This way the ladies could visualize with a common understanding that in order to ensure a peaceful & harmonious situation in their village they need to co-operate with OIL officials and so they decided then and there to make themselves to lend their co-operation. That was the turning point showing the glimpse of the hope for the way out. The ladies aptly understood & whole heartedly accepted the fact that the disturbances are mostly created by their own people, they cannot trust them anymore to restore normalcy. So they decided to come forward on their own taking the onus of ensuring safety and security of all vital equipments in the EPS, the crude oil line and smooth passage of OIL personnel to the installations and the well sites. All together 36 ladies in the age group of 45-50 years came forward. Some of them were mothers, some were sisters and close relatives hopefully to some of the miscreants. Because of their emotional bonding with the problem makers immediately most of the problems stopped happening when they took charge in their new role. It is also important to note here that the ladies were not actually employed as regulars nor even engaged as casual security personnel. The package was entirely different. Initially, a lump sum honorarium of only ` 6,000/- per month was given to the entire group (later on increased); they were explained & they accepted that the honorarium is actually a recognition for their noble effort. They were in fact not supposed to guard like usual security people standing at the site for hours together, but their influence & emotional attachment with their own people was basically expected to ensure the round-the-

56


clock vigil. The money they earned so far has reportedly been utilised for community purposes only. It is worth mentioning here that the entire effort is still continuing after more than (5) five years hence with much less disturbances than anybody can think of. Although, single incidents do happened in between, that didn’t prove to be of much significance. The contribution of these energized women, though at the very bottom line, has in fact provided the much needed protection to company’s vital assets. Their natural personal relationship with their own people played the vital role which is still continuing in a more powerful way than the usual physical presence at the site round the clock.

At the deeper level, if we see, it’s basically application of the emotional learning that if we can feel and manage emotions of ours and those of others, we can take the most appropriate actions even for seemingly disturbing situations. All that OIL could achieve in the situation as above was basically through triggering the emotional aspect of all the loving ladies, who are mostly caring by nature. Because of this natural capability probably, they on their turn could successfully apply their emotional bonding with their brothers, sons and the likes which made the inevitable happen in the desired way.

How the idea emerged?

The dealing official responsible for security of OIL’s property and people, somehow at the deeper level within him, could connect to a thought and belief that the women in general are of very caring nature. With this ability they develop a natural ability to maintain relationship and hence influence. They love to take care of whom they love and thus gain their confidence in leading them. This was a compelling ongoing thought within him may be for a period of one year. During this ongoing process, the problem at the OIL location emerged big and big and everybody was on the look out of the probable solution. Probably by that time, our nodal officer was habituated in ‘thinking while doing’ and could successfully link the caring attitude of the women with the problem in hand. The effort ultimately paid the due dividend.

Initially, while proposing for the discussion in this new direction, lot of resistance and inhibitions were there for the new initiative, because of the existing mindset or mental model that “women folk can never ensure security”. But, there were certain enabling factors too like helpful and positive attitude of the officer-in-charge of the local police station. His supportive attitude played a major role in going ahead. Subsequently, during the entire period, the police also played their role by giving regular patrolling and assuring the village ladies community of any help required at any point of time.


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By the time of reporting this incident other situations are also improving like improvement in road communication, upliftment of community facilities inside the village. The long term result achieved so far is a harmonious relationship of OIL personnel with the local people there. In the disturbing period of 2006-07 for almost a year the number of FIRs lodged signifies the impact of the disturbing situation. But, since the last FIR was filed in 2009, in between no FIR has to be filed by OIL.

The implication

Oil India Limited is being able to continually successfully extract hydrocarbon from the producing wells there from at the present rate of 40-50 klpd per well contributing towards company’s exchequer and the nation’s energy security as a result of this effort. A nagging problem could be averted at the very root itself with application of emotional learning with self developed effort. It defeats certain belief about women and establishes strong relationship of EI to business results.

“Sometimes we stare so long at a door that is closing that we see too late the one that is open.”

– Alexander Graham Bell

The learning and

knowledge that we have

is, at the most, but little

compared with that of

which we are ignorant

– Plato

ParT ii

VigiLanCe Case sTUdies

In the foregoing pages actual vigilance case studies

have been depicted that were dealt by the department.

Mentioning the details, has been avoided to convert

the cases as tools of learning through awareness. Any

resemblance to whatsoever, is purely unintentional

and the learning has to be taken in a constructive way.

Index

Sl. No. Case Title Page No.

1 An Employee Doing Business with the Company 61

2 Misappropriation of Company’s Property 63

3 Enhancement of Job Quantum in Contract 65

4 Complaint in Regard to Recruitment of Executive 66

5 Paying Additional Mobilisation Charges 68

6 Awarding AMC at Higher Rates than Rates Stipulated 70

7 Non Renewal of PBG after Contract Extension 72

8 Contract on Radiographic Inspection of Pipeline Welding 73

9 Hiring Services for Drilling Location 75

10 Repeated Single Source Purchase 76

11 Discrepancy in Awarding a Service Contract 77

12 Irregularities in Purchase of Materials 79

13 Irregularities in Awarding of Jobs and Releasing of Payment 81

14 Discrepancies in Awarding and Execution of A Service Contract 83

15 Irregularities in issuing Purchase Order 84

16 Alleged Excess Claim 85

17 Reimbursement of Self Lease Accommodation 86

18 Purchase of Chemical 88

19 False Claim by a Referral Hospital of OIL 90

20 Purchase of Oil Well Equipment 91

21 Non Levy of Liquidated Damages 93


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CASE STUdY 1

An Employee doing Business with the Company

Background

The case is based on a complaint that an existing employee of the company was doing business with the company in the name of a contractor firm by remaining its sole and silent proprietor and thus was running many contracts in the firm’s name for a long time. The following facts were revealed during the course of the investigation.

Facts

The case study is related to a department which carries seismic survey operations in various areas, through eligible contractors in OIL operational areas. The employee under question was found to be having close association with the firm associated with carrying out various jobs of the department including survey contracts. The said employee was found to be associated with the particular firm, in preparation of bids, execution of contracts, making correspondence with the company, on their behalf. He was further found writing cheques in the name of the firm in his own hand writing and also collection of cheques of the firm in respect of the contracts awarded, including regular transaction of money etc. from current account of the firm to his own account and that of his wife. The financial transactions related to himself and his wife with the firm were of regular nature. He was also found to be involved in financial transactions with another firm having business with the Company in the same department.

Conclusion

Disciplinary Authority found that all the charges leveled against him were proved. Charge sheet was issued to the employee and Disciplinary Proceedings were conducted. It revealed that the employee had violated rule nos. 13.1, 13.2, 4.1.2, 4.1.3, 5.1, 5.5 and 14.1 etc. of the OECDA i.e. Oil Executives’ CDA Rules1982 (Amended) and was finally given a Major Penalty of demotion to a lower grade.

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The aforementioned rules of the company are mentioned below for ready reference:

13.1: No employee of the Company shall, except with the previous sanction of the competent authority; engage directly or indirectly in any trade or business or undertake any other employment.

13.2: Every employee of the Company shall report to the competent authority; any member of his family is engaged in a trade or business or owns or manages insurance agency or Commission agency.

(He had not declared to the company that his wife was engaged in business as required under rules 13.1 and 13.2 of the OECDA Rules)

4.1.2: Maintain devotion to duty; and

4.1.3: Do nothing which is unbecoming of a public servant.

5.1: Theft, fraud or dishonesty in connection with the business or property of the Company or of property of another person with the premises of the Company.

5.5: Acting in a manner prejudicial to the interests of the Company.

14.1: No employee shall, save in the ordinary course of business with a bank, the Life Insurance Corporation or a firm of standing, borrow money from or lend money to or otherwise place himself under pecuniary obligation to any person with whom he has or is likely to have official dealings or permit any such borrowing, lending or pecuniary obligation in his name or for his benefit or for the benefit of any member of his family.

“Don’t argue for other people’s weaknesses. Don’t argue for your own.

When you make a mistake, admit it, correct it, and learn from it immediately.”

- Stephen R. Covey


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CASE STUdY 2

Misappropriation of Company’s Property

Background

Empty casks of Lube oil / gear oil etc. supplied to the outstations in and around FHQ, Duliajan are to be returned back to the Materials Department, Duliajan. An employee posted in a particular outstation lodged a complaint to the CVO alleging that an officer Shri ABC posted at the outstation drew 4 nos. of such empty casks and transferred the same to his residence located in another outstation by the Dak Truck (a Truck which is a mode of transporting materials in between the outstations and the FHQ).

Facts

Based on the complaint an investigation was done. Following facts came to light:

The Investigations revealed that 4 nos. of empty casks of 200 ltrs were loaded into a Dak Truck at the particular outstation. A gate pass at the outstation gate showed that the empty casks were being sent to Duliajan stores. However, the godown number was not mentioned on the gate pass and Delivery Note was also not enclosed. It was also noticed that the gate pass was prepared by Shri ABC, an officer posted at the particular outstation. It was found out that the casks were off loaded at the residence of Shri ABC at another location in between.

The material under discussion was actually transferred by the said officer Shri ABC vide a Material Gate Pass which was prepared by him. No ‘delivery note’ was given along with the gate pass which is required as per established company procedure for transferring company material from one installation to another. Mr ABC claimed that he handed over the delivery note to the Dak Truck driver but the concerned driver denied the same, copy of which was not even found in the respective department. It can be inferred that no delivery note was prepared for the material on the particular date for the item. The said officer later on transferred the drums to Duliajan by Dak Truck with a Delivery Note but the copy of this Delivery Note was also not found in the respective department. Shri ABC also failed to bring the fact to the knowledge of his controlling officer as was evident from a letter written by the controlling officer to Shri ABC.

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Conclusion

From the foregoing it is evident that the charges against Shri ABC, have been proved. He failed to exhibit integrity towards the Company. However, since the loss to the company could be averted and the total cost of the material being only Rs 800/- as indicated by IO, a Censure letter was issued to Shri ABC following due procedure for imposing minor penalty. In the instant case the officer violated Oil Executives’ CDA rule nos 4.1 & 5.1 which are reproduced below:

4.1 Every employee of the Company shall at all times:

4.1.1 Maintain absolute integrity;

4.1.2 Maintain devotion to duty; and

4.1.3 Do nothing which is unbecoming of a public servant.

5.1 Theft, fraud or dishonesty in connection with the business or property of the Company or of property of another person within the premises of the Company.

“Don’t let yesterday take up too much of today.” -- Will Rogers, Humorist


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CASE STUdY 3

Enhancement of Job Quantum in Contract

Background A contract was awarded to a Company to construct an Optical Fiber Cable (OFC) and other related works along the Right of Way (ROW) of the OIL’s trunk pipeline between two locations. There was a provision of 10 KM of OFC to be laid through Horizontal Deviation Drilling (HDD) and the rest of the 1157KM through Open Cut Method. A compliant received by CBI relating to the contract was forwarded to OIL. The complaint alleged that the site engineer had taken a bribe of Rs 2.0 Lakh from the contractor M/s RPG and recommended to the higher authority for enhancement of the 10 KM HDD to 40KM causing additional financial burden to the company.

FactsM/s RPG was awarded the contract being the lowest bidder. The contractor was supposed to finish all work by December 2005 but was given extension up to April, 2007. HDD job was enhanced from 10KM to about 80KM on recommendation of the Site engineer. The deviation was made in the contract for operational advantage with approval of the competent authority. Allegation of taking bribe of Rs 2.0 Lakh was not proved, no action on this account against any company officer was recommended. Incidentally, the complainant withdrew the complaint in writing to CBI through his principal contractor (M/s RPG) stating that he made the complaint with some wrong impression. Although no malafide interest was found and no monetary loss was there, since the concerned officers exceeded their limits of deviation / increasing the quantity of work and altered the terms and condition of the contract, it was suggested to caution the officers in question.

ConclusionThe discrepancy might have occurred as the operating department did not take care to ascertain the exact requirement before finalizing the contract. Company officers should take utmost care to ascertain exact requirement while framing tender documents. The instant case does point towards the inefficient and unprofessional manner in which the estimation for HDD was made. It is therefore advised that the estimation of quantities i.e. preparation of BOQ (Bill of Quantities) for any contract should be made with utmost care to avoid such discrepancies during the time of execution. It was also observed during investigation that the contractor violated the provisions in the contract by not paying to the sub-contractor’s personnel.

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CASE STUdY 4

Complaint in Regard to Recruitment of Executive

Background

A Vigilance Complaint was registered based on referral by the Central Vigilance Commission (CVC). The complaint was made by one candidate who had applied for a senior level post in the company against an advertisement. The candidate alleged that there was malafide interest in the manner that his candidature for the particular post was rejected on medical grounds, on the basis of ‘Gross Colour Blindness’ found by the medical board after Pre Employment Medical Examination (PEME) at Apollo Gleneagles Hospital, Kolkata. He alleged that ‘Gross Colour Blindness’ cannot be a valid reason for rejecting his candidature for the post as the post does not require any job in which this can be an impediment. Other allegations were that he was informed about his rejection (on medical grounds) only when he had written to the company several times.

Facts : After investigation the following emerged:

The company does not have a policy to inform the unsuccessful candidates about the outcome of the PEME / Test / Interview. The company carries out PEME at its central hospital at Duliajan or in one of the accredited / empanelled hospitals elsewhere. The Medical Board had studied the reports and gave its decision as per the PEME policy of the company. The desired candidate for the particular post was supposed to carry out mixed colour data interpretation including colour pie diagram which would be difficult for a person with ‘Gross Colour Blindness’. After investigations, no malafide interest could be found and none of the allegations could be substantiated. The investigation report was sent to CVC. The Commission agreed with the views of CVO and advised closure of the case. However, it advised that in order to bring in transparency in the selection process, the company should stipulate medical fitness requirement levels for various posts. An advice was sent to the Management to implement the suggestions of the CVC. The advice has been implemented.


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lessons learnt

Officials concerned should be extremely careful in replying to queries regarding various matters. In the instant case the candidate was informed about some other ailments when he queried for the second time, which however, were not the basis of rejection. Stipulations in a transparent manner should have been there for the level of medical fitness required for various posts to avoid queries at a later stage.

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CASE STUdY 5

Paying Additional Mobilisation Charges

Background

An Intensive Examination was carried out of a Contract for 3D Seismic Data Acquisition, Processing and Interpretation for one Project by CTE’s Organization. The CTE referred 12 paras to the CVO for clarifications. The replies to the paras were sent to the CTE after obtaining clarifications from the Management. The CTE accepted the clarifications on 11 paras. The Central Vigilance Commission (CVC) directed CVO to fix responsibility in the matter of payment of US$ 25000.00 as Mobilization Charges again in the Contract. The Central Vigilance Commission had inferred that since the record of the price negotiation meeting were not maintained, there was no proof of the due effort put by the negotiating officers to impress on the contractor to reduce the mobilization charges. Hence the Commission directed the CVO to fix responsibility.

Facts

A Project of Oil India Limited awarded a contract for 3D Seismic Data Acquisition, Processing and Interpretation for an area of 250 Sq. Km., the report of the same was submitted to the contractor at New Delhi on 21st and 22nd Feb.’2005. During the presentation it was felt that data acquisition, processing and interpretation is required for an additional area of 62.5 Sq Km. in the adjoining area. A team of five officers were nominated to carry out the negotiations with the contractor. The team negotiated with the contractor to carry out the job at the same rates, terms and conditions of the original contract; the company had an option to get an additional job of 25% carried out at the same rates terms and condition as of the original contract. However, the contractor while agreeing to carry out the job at the same rates, terms and conditions also demanded the same mobilization charges of US$ 25000.00 as the original contract since he had demobilized the equipment and the manpower from the site. The CTE asked for the minutes of the negotiation which could not be provided. CVC then opined that since the minutes of the negotiation meeting are not available it seems that the negotiating team did not put in enough effort to convince the contractor not to charge the mobilization charges or to reduce them. The CVC therefore desired to fix responsibility. After obtaining the clarifications from the officers involved in the negotiations it was revealed that:


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There was neither the procedure nor the practice to record the minutes of the negotiation meetings. The proposals were put up on the basis of the letter of offer received from the vendor after the negotiations.

The contractors/service providers normally move their equipment out of the site as soon as the data acquisition job is completed and this was the accepted practice in the industry. The terms of the contract that the company had the option of ordering for acquisition, processing and interpretation of additional data was valid only if the same is asked from the contractor immediately after the original data acquisition job was over.

The Management did not mention that there was no system of recording the minutes of negotiation meetings in their replies to the queries from the CTE. The Management also held the officers negotiating in the matter responsible for the payment of the mobilization charges.

However in view of the clarifications provided by the suspected officers and further clarifications sought from the Management it was reasoned by the Vigilance Dept. that no malafide was intended in the payment of the mobilization charges to the contractor. The same was conveyed to the CVC.

observation of CVC

The CVC advised that the officers should be warned to be more careful in future. Action was taken as advised by the Commission.

“Think you can, think you can’t;

either way, you’ll be right.” – Henry Ford

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CASE STUdY 6

Awarding AMC at Higher Rates than Rates Stipulated

Background :A vigilance complaint was registered on the basis of Audit Queries raised by the Internal Audit Dept. against two contracts for maintenance of a particular type of machine. Comments of the audit report included the following-

‘The xyz machines covered by the subject contracts were procured by a department. The purchase orders of the machines stipulated that on expiry of the warranty period, the suppliers will have to carry out Annual Maintenance Contract (AMC) at the rate as specified in the Purchase Order. However, after expiry of warranty period, the AMCs were awarded at much higher rates than the rates stipulated in the purchase orders resulting in financial loss to the company’.

Facts

The machines were purchased in two lots of 5 and 24 nos. separately.

(i) In the purchase order of 5 machines, 4 machines were purchased with the stipulation in the purchase order (PO) that on completion of one year warranty period the company will have an option to enter into an Annual Maintenance Contract (AMC) for at least 4 (four) years at the rates mentioned in the purchase order i.e. @ Rs. 9000.00 (inclusive of cost of spares but excluding VAT/Service Tax). The purchase order of the remaining machine was having the stipulation of AMC rate with the vendor @ 14000.00 per year (inclusive of the cost of spares but exclusive of consumables, applicable VAT & Service tax). However, the AMC for these machines was awarded @ Rs. 12020.00 per year (Taxes: VAT @ 12.5% + service tax @ 12.36% extra as applicable)

(ii) The other lot of machines (three models) was purchased having different options of AMC in the POs. In the purchase order for two models the AMC provision was @ Rs. 6250.00 plus service tax of 12.24% per year and the third lot @ Rs 6500.00 plus service tax of 12.24% per year. But, the AMC was awarded at the following rates- @ Rs. 15600.00 for the first two models and @ Rs. 16800.00 for the third model.


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Moreover, the above rates were made applicable for the first year per machine plus the applicable taxes. In the 2nd year rate enhancement was allowed up to 12% above the 1st year rate and for the 3rd year it was 12% above the 2nd year rate.

While putting up the proposal in both the cases the fact that the company had an option to go for an AMC at the rates specified in the purchase contract was not brought to the notice of the approving authority.

In the second case of AMC awarded, it may be noted that the earlier AMC had uniform yearly contract rate whereas this AMC had rates increasing @ 12% on the rate of the previous year. The rates were much higher than the earlier AMC. The quotation on which the proposal dated 11th December, 2007 was based was received by the department on 17th January, 2008 only (a later date). However, the officer concerned had informed that he had prepared the proposal on the basis of the quotation dated 19th November, 2007 where the quoted rates were same as in quotation dated 17th January, 2008.

Conclusion

Not bringing the facts to the notice of the approving authority regarding the option available to the company to get into an AMC at pre-determined rates, which were lower than the rates of AMCs being discussed, was viewed with objection. If new terms and conditions were to be included in the new AMCs (as was claimed by the suspected officer) the fact should have been recorded and brought to notice. It was advised to award minor penalty to the officer who made and put up the proposal. The act of the officer was in violation of rules 4.1.1, 4.1.2, 5.5 and 5.9 of the Oil Executives’ CDA rules 1982 (Amended) which are reproduced below:

4.1.1 Maintain absolute integrity;

4.1.2 Maintain devotion to duty;

5.5 Acting in a manner prejudicial to the interests of the Company.

5.9 Neglect of work or negligence in the performance of duty including malingering or slowing down of work.

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CASE STUdY 7

Non Renewal of PBG After Contract Extension

Background A complaint was registered pertaining to an irregularity relating to performance bank guarantee (PBG) for contract no XYZ (laying of HDPE duct) was observed. PBG was not renewed & enhanced though the contract period was extended and contract value was enhanced.

Facts The job of laying HDPE duct for Optical Fiber Cable along Oil Pipeline from Naharkatiya, Assam to Barauni, Bihar, for one part of 942 km was given to M/s XYZ Cables; vide a contract in the year 2003. The original contract value was Rs. 13.51 Crores with target completion date of July 2004. However it was extended to Dec 2005 without imposition of LD, and contract value was enhanced to Rs. 22.09 Crores with approval of competent authority in Sept 2005. The target date was further extended to April 2007 with imposition of LD. By this date the project was completed.

During investigation it emerged that PBG was renewed up to 31.03.2008, which was one year beyond revised project completion date of 30.04.2007. Hence PBG was valid. OIL officers made sufficient effort to obtain enhanced PBG from the contractor, on failure of which, it was decided to withhold 10% of all payments against actual job done by the contractor till PBG is not furnished, to safeguard the interest of the Company. However, since approval to adopt this procedure to deduct 10% from running bills of the vendor was not obtained from the competent authority this could be perceived as procedural lapse.

Conclusion Since no malafide intention was found, it was decided to close the complaint. It was advised to issue warning letter to the concerned officers. The value of the work under the contract was revised but the PBG though valid to cover the period of the contract was not enhanced as per the revised value of the contract. This was a violation of the guidelines given in the contract manual. The system of deduction of 10% of money from the running bills of the contractor in lieu of the PBG as per revised value of the contract was not as per the provisions provided in the contract manual.


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CASE STUdY 8

Contract on Radiographic Inspection of Pipeline Welding

Background

The case relates to an allegation that in the work to lay the pipeline through ‘Micro-Tunneling Method’, the underground pipelines cross through seven rivers, the job of Radiographic Testing on the newly constructed pipeline joints, was assigned to a company M/s LP(P) Ltd., the principal contractor. The testing work was thereafter sublet to a Company M/s MPP. This was in turn further assigned by M/s MPP to the complainant (Company). The complainant stated that the rates they were offered for doing the job were very low as per charges of X-ray. The said Company asked them to do Gamma- ray instead of X-ray to bring down cost, which they did not do. Thereafter, the job was given to another Company who were doing that work by using Gamma –rays. As complained, the testing work done through Gamma ray is cheaper but does not detect the probabilities of leakage, which may also lead to any untoward incident despite spending money. Also the same act was violating the norms and terms of the contract, which stipulated work of radiography of wielded joints of Pipe Line through X-ray only.

Facts

In the instant case, the contractor had used the Gamma Rays in 49 pipe joints, as found during pipeline inspection, in case of those joints which were inaccessible to the X-ray machine. This was duly approved both by the consultant and the concerned authorities of OIL. The contractor did not violate any terms and conditions of the said contract by engaging another firm, to carry out the Radiographic tests by using Gamma Rays, in lieu of the X-rays. The Investing Officers (IOs) had even physically verified/ inspected the records/films used and have opined that the “Kodak”, brand films used were as per ISI standard; and also standard equipment such as the Pentameters were used in the Radio graphic testing.

As per particular clauses of the contract, it was mentioned that “deviation is acceptable in view of… but cost benefit, if any, should be passed on to OIL”. Confirmation was

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sought whether the cost benefit was passed on to OIL. It was also enquired about the rate at which the contractor was paid. The reply tendered was that the costs of these tests are summarily included in the total cost of the said contract. The rate/cost of Gamma Ray Testing and the X-Ray testing as per the contract could not be provided and hence the response to the queries was not found satisfactory. Moreover the basis of computing cost benefit to OIL, was not based on any specific contract rate, but calculated on the basis of operating costs incurred, as determined by the PMC. The computation forwarded was found to be arbitrarily fixed/computed by the PMC. Since, provisions of the contract, under the heading ‘specific conditions’ (i.e. use of Gamma Rays, in lieu of X-Rays) provides such a deviation, the contract should have the provision of specific contract rate for under taking such jobs. No separate rates were found mentioned in the contract. And the modus for calculation should not have been left to the discretion of the PMC as was done in the instant case. Although the company was remitted some amount, the rate fixed by the PMC was without any reference rate in the contract.

The Disciplinary Authority (DA) was informed that concerned officers should be duly advised to keep provision for all items likely to be used in the contract to avoid such problems in future.

Conclusion :

The contract was not properly made. Hence, the proper cost benefit could not be passed on to the company, considering the admissible fact of using low cost Gamma Ray testing in lieu of the X-Ray. Further, because of lack of far sightedness, Company had to depend on the estimate provided by PMC.


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CASE STUdY 9

Hiring Services for drilling location

Background

One well was to be drilled in a Drilling Location, loc-xyz in a Company’s Operational Area, under a NELP Block. A particular service was required for the drilling operation. Tender was floated to hire the services. There was an allegation of making excess payment for providing the service.

Facts

In response to an Expression of Interest in the newspapers, only one quotation was received. Negotiations were held with the lone bidder and the quoted rate of around Rs. 3 lakh per month was brought down. After approval, Letter of Intent (LOI) was issued to the party advising them to mobilize the services by a particular date. The contractor mobilized the services late. Subsequently, after completion of the job, the party was advised to de-mobilize the services. The contractor submitted a bill for an excess period than the period of actual services provided. The excess payment made was Rs. 1,16,854/-. Excess payment was recovered from the running bills of other jobs from the contractor and Disciplinary Authority (DA) was advised to issue warning to the officers concerned.

Conclusions

Paying the excess amount was a lapse on part of the officers who prepared the COP and checked the measurement. Bid closing date was short; same was not extended when a single bid was received. The findings signify the lapse on part of the officers’ concerned and attracted misconduct as per 4.1.2 & 5.5 of Oil Executives’ CDA rules 1982 (Amended).

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CASE STUdY 10

Repeated Single Source Purchase

Background

Complaint in the matter of materials being purchased from single source continuously in a particular office of the Company.

Facts

In the instant case, enquiries were sent to 5 parties, quotation was received from one party only. Bid closing date was extended by 2 weeks but no more bids were received. Quoted price was higher by 53% compared to last Purchase Order (PO). After negotiation 10% discount was obtained and PO was placed after approval as per DOP 30 (c). The reasonableness or justification of high price was no where recorded. The earlier PO was also made (almost two and half years ago) by sending enquiry to the same 5 parties and order was placed on single offer basis from the same party. Tender was neither advertised through press nor published in web as the value was less than the stipulated amounts.

Conclusion

The accessories purchased were of general nature. Parties to whom limited tender was issued were listed in a particular commodity code. Vendor list was not updated for a very long time (more than 5 to 6 years) and there is no laid down procedure for updating vendor list. In the particular office, despite the order being placed over and over again on the basis of single offer received, no ‘red flag’ was raised either to revise the vendor list or to carry out purchase through open tender.

Responsibility could not be fixed due to multiple decision points in updating vendor list such as materials planning, materials procurement and user departments. An advice was forwarded to the authorities in 2010, for evolving a well documented system to review and update the vendor list periodically to avoid a monopolistic situation where the price and quality are at stake.


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CASE STUdY 11

discrepancy in Awarding a Service Contract

Background

Complaint regarding the following-

1. A contract was awarded for only 5 jobs against NIT requirement of 31 nos.

2. A policy decision taken to change process of doing the job.

3. The manner in which two tenders were cancelled.

A particular department of the company carries out a service job in the installations / locations in the oilfield through contracts. For such a requirement, three tenders were floated for services in different locations. In a contract awarded against a particular tender, jobs allocated were reduced to 5 nos. instead of the NIT requirement for 31 jobs. The other two tenders were cancelled.

The reason for allocating reduced no. of jobs for the finalized contract, in the first tender, was stated to be poor (past) performance of the contractor. Hence, decision was kept pending to award jobs for the rest 26 subject till successful completion of initial 5 jobs awarded to the contractor. The other two Tenders were cancelled as per recommendation of HOD. Reasons stated: in one tender, a party quoted very high rate and another party although quoted low rate was having poor past performance record. In case of the remaining tender, none of the bidders were found acceptable.

In between, OIL made a policy change to go for mechanized mode of execution of the job instead of manual mode due to technical advancement even though cost was high.

Findings

The contract for execution of the 5 jobs was awarded bypassing other technically qualified bidders without recording any reasons. TC members had taken arbitrary decision in excess of power / jurisdiction vested on them, which is unethical and irregular.

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In regard to policy change incorporating mechanized mode of execution, HOD provided justification stating advantages for the same, and the policy was approved by the competent authority. For the second tender, the reasons cited above were substantiated by advice from competent authority to cancel the tender and re-float. In the last case, offers were not acceptable as per technical scrutiny. In these cases, no malafide intentions were observed.

Warning was recommended & issued to the TC members for taking arbitrary and unethical decision.

Conclusion

In the first case, the concerned officers followed a procedure to award the contract which was not in keeping with the prevalent tendering guidelines of the company. In the second tender, the offer of one bidder was rejected on the basis of poor performance in an earlier contract, which should not have been done after opening the bids. The contractor should have been (earlier) black-listed on the basis of the poor performance and not allowed to participate in the tender.


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CASE STUdY 12

Irregularities in Purchase of Materials

Background

A complaint was received in the office of CVO alleging irregularities done in a particular department of the company in the purchase of certain material. The allegations were that-

a. An order was placed on M/s XYZ for purchase of a huge quantity of material. The party did not supply in time and asked for time extension twice.

b. OIL officials did not wait for delivery during the second extension and instead placed an order on M/s HJK, for another huge quantity at a huge price differential of 3.0 crores. The materials were to be supplied in two lots. Although the materials were supposed to be off-loaded at place ‘A’ as per the purchase proposal approved by the competent authority, the order was placed with delivery at place ‘B’, the base station. However, the delivery of the second lot was advised at ‘A’.

Facts

Correspondence was made with M/s XYZ, to deliver the material on an urgent basis but, since there was delay the company en-cashed their Bank Guarantee. However, the party shipped the ordered material on a later date.

Regarding the order on M/s HJK, it was revealed that the proposal was made with delivery at ‘A’ with a simultaneous action for making a transportation contract for transferring the same from ‘A to B’. However, on closer scrutiny it was revealed that though the proposal talked about delivery at ‘A’ but at the end of the proposal, it recommended delivery at location ‘B’. The order was placed on M/s HJK with delivery instruction at ‘B’. However, this mistake was noticed and subsequently M/s HJK was asked to divert back the material to ‘A’ which the supplier did not oblige. Later an amendment was issued instructing M/s HJK to deliver the second lot at ‘A’ as was approved in the proposal.

The officers concerned partly admitted the mistake in the proposal and did make amendments when mistake was discovered by them. However, they also tried to

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justify the delivery of the first lot at ‘B’ on the plea that the transportation contract for transporting the pipes from ‘A to B’ was not ready at the time of placement of the order. It was also revealed that none of the approving authorities could detect the discrepancy in the proposal.

Conclusion

Since no malafide intention could be attributed in the matter, the complaint was closed. The findings in the complaint were informed to the management warning letters were issued to the officers concerned.

Benjamin Franklin


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CASE STUdY 13

Irregularities in Awarding of Jobs and Releasing of Payment

Background

The case relates to irregularities in awarding contracts and release of payments. As part of certain celebrations, it was decided to hold an exhibition with industrial models and some audiovisuals. Allegations of irregularities in awarding a job advice to M/s XYZ Creations, bypassing normal laid down procedures of procurement of OIL, were raised. The committee constituted for the model/exhibition was not consulted for procurement of models and also certification of payment. No care was taken for selection of the party and their offer was not justified with any supporting document. No internal estimate was prepared for the job/service.

Facts

A purchase order was placed to a vendor directly by an Executive, the Secretary of the Committee responsible for holding the big event. The order was for the supply of two models providing the associated service (like exhibition display & audio-visual shows) for a value of Rs. 8.10 lakhs. The required procedures were not followed. The vendor was also given an advance of Rs. 3.24 lakhs (40% of the value of the order). The balance amount of Rs. 4.86 lakhs was released on completion of the job.

The obtained clarifications revealed that the understanding of the system of procurement was not clear even at the levels of functional heads. The advice from the Executive to pay an amount without a proper purchase order also did not raise a Red Flag (alarm) and the payment was processed. An amount to the tune of 40% of order value was advised by the Executive and released. It may be noted that payment of advance is allowed in exceptional circumstances only with certain pre-conditions.

The explanation given was that celebration of such type of functions are not regular events and are conducted through a duly constituted committee for managing the various events of such celebration. The committee is empowered to take decision about purchase and contract which are of special nature and not like the case of

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normal course of business of the company. In the instant case, since the committee had decided to award the contract on a total negotiated cost of Rs 8.10 lakhs, the payment was released after deducting applicable taxes based on the certification of the organizing secretary of the Committee. However, concerned commercial functional head informed that Delegation of Powers (DOP) do not have any such provision and all procurement are to be made in accordance with provision of DOP only.

It is evident from above that the action of the executive and the committee was in violation of the laid down procedure for purchase/contract of the company. The officer concerned carried out the purchase bypassing the established procedure of the company and failed to check the purchase outside the system.

The highest authority was apprised and the discrepancies were brought to the knowledge of all the officers highlighting the requirement to comply with the procedures of the company, and non-compliance warrant appropriate action.

“I love the man who can smile in trouble,

gather strength from distress and grow brave by

reflection.” – Thomas Paine


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CASE STUdY 14

discrepancies in Awarding and Execution of A Service Contract

Background

Renovation of a Company’s Guest House was undertaken at a very short notice. Preliminary enquiries revealed some discrepancies in the manner the job was awarded and executed. A regular vigilance complaint was registered and investigated.

Facts

The investigations revealed that:

The concerned officials got the job done in a hurry because of instructions that some dignitaries would be visiting the company and staying in the Guest House. The officers tried to expedite the work so that the renovation is completed before the ensuing visit of the dignitary. In order to have the job completed they made some mistakes and also overlooked some established company procedure regarding award of contract. They also did not take the Performance Guarantee from the successful bidder and it was taken only after it was pointed out by the IO. However, in the entire process the officers have made one serious mistake that they allowed the vendor who prepared the budgetary estimate in the tender to participate in the tender and to execute the works. This is strictly prohibited by the Central Vigilance Commission vide their Office Order No. 75/12/04 issued vide ref. 98/DSP/3 dated 24th Dec.’2004. The officers were issued warning letters.

Suggestions

It was therefore suggested suitably to inform all the officers that despite urgency, the officers should refrain from short cutting the established procedures of the company regarding Contracts and Purchase. It was also suggested that the officers should be informed about the provisions of the guidelines issued by the CVC vide their office order no. 75/12/04 issued vide ref. 98/DSP/3 dated 24th December 2004 regarding the participation of vendors who have provided consultancy/budgetary quotations.

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CASE STUdY 15

Irregularities in Issuing Purchase order

Background

It was alleged that an officer favored one particular vendor M/s XYZ Enterprises, by issuing them more purchase orders (POs) in comparison to other vendors.

It can be mentioned here that the company has a well established system of purchase where the powers vested with the competent authority are sub-delegated to an officer down below. The powers allow the officer to:

a. Receive purchase requisition (PRs)b. Scrutiny and categorization of the received PRsc. Creation and printing of Dummy PO as per categoryd. Calling of vendors in waiting in the category for collection of PO.

Facts

During the investigation it was revealed that M/s XYZ Enterprises was given 30% of the total orders in monetary terms followed by other parties getting 21.58%, 16.6%, 14.87%, 12.84% and 3.89% of the orders respectively. Although there were 16 vendors in the list of vendors for the particular items but only 5 were active and used to get orders. There was a practice to issue orders on seriatim basis but this was not strictly followed by the officer to whom it was entrusted and such non-compliance becomes misconduct as per clause 5.5 of the Oil Executives’ CDA Rules.

Suggestions

The vendors should be categorized on the basis of their performance and orders issued accordingly to maintain quality and punctuality in supply of material. The performance of the officer-in-charge for that type of purchase may be reviewed on a half yearly basis to arrest any discrepancy in the procurement pattern. The vendor list should be reviewed every year and non-responsive and inactive vendors should be deleted from the list.

The functional head was advised to take action to review the list of vendors and remove the names of the vendors who are inactive. This should be done regularly and standing instructions may be issued. Officer concerned should be issued a warning letter to be careful in execution of the jobs in the future.


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CASE STUdY 16

Alleged Excess Claim

Background This case relates to a complaint regarding alleged reimbursement of medical bills & Leave Travel Concession/ LFA from OIL in respect of his dependent parents, of an employee, in excess than the permissible limit.

FactsShri ABC, an employee of the Company (OIL), in his declaration to the company regarding his parents stated as below:

(a) That, they are dependent on him and are not employed anywhere or carrying out any trade/ business.

(b) That, they physically reside with him at his place of work, all the time and have not come to stay with him temporarily only to avail of the medical benefits being given by the Company.

(c) That, their monthly income from all sources like Pension/Land holding/Home income/any trade or business does not exceed than the prescribed amount of the Company.

(d) That, the employee shall communicate to the concerned office any change in the relevant information at the appropriate time and

(e) That, if the above information furnished, found to be false at a later date the Company shall be at liberty to take appropriate disciplinary action against him under the Company’s Standing Order and also have the right to recover any costs incurred owing to such false declaration.

Investigation revealed that father of Shri ABC was in receipt of pension during the period 01.01.1996 to 31.12.2008. During the same period, Shri ABC claimed for medical expenses for Rs 4,224.00 & Rs 27,832.00 in respect of his dependent parents, which was above the prescribed ceiling fixed by OIL.

It was an appropriate case for initiation of disciplinary action under the Company’s Standing Order. However, as the charged employee had already been discharged from the Company’s service no recommendation was initiated for any disciplinary action against him. However, since OIL has the right to recover any costs incurred, if any, owing to such false declaration, by the employee, it was therefore recommended to the Disciplinary Authority to recover the amount of Rs 32,056.00 from the final settlement.

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CASE STUdY 17

Reimbursement of Self lease Accommodation

Background

A complaint was received in the CVO’s office alleging that Shri ABC an officer of OIL, has committed the following acts, which is blatant violation of the laid down rules of the Company-

a) That Shri ABC claimed LFA for two of his sons who were employed since long and for his mother who never stayed with him in his place of present posting.

b) He continues to claim medical reimbursement also, despite his two sons employed, while the information about his son’s employment is known in the public domain.

c) That while he is taking “self lease” for his own flat he stays in a rented house in another location.

Facts

The allegation of undue LFA/LTC claim by Shri ABC for two of his sons who were employed since long and for his mother (who never stayed with him at his place of present posting), was not pursued, in the light of a letter from the competent authority, wherein it was stated that the rules for claiming LFA/LTC by the dependents of executives, in the Executive Personnel Policy Manual does not clearly define the term wholly dependents. The competent authority suggested that the cases related to claiming of LFA/LTC by employees in the past might be closed, as the definition, itself was not very clear, giving the employees the benefit of doubt, as also opined by the legal counsel.

Next, the allegation of undue medical reimbursement claim of Shri ABC for two of his sons though employed cannot be conclusively proved, since the complainant had provided the name of one of his sons & his employer in detail while in the case of the other son, no specific detail regarding the name of the son or his employer was provided. Nevertheless, it was tried to verify the information provided with his employer


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(as alleged), but no confirmation could be achieved. Therefore, in the absence of any specific detail/ material evidence the point was not pursued further.

Lastly, the allegation that Shri ABC was taking ‘self lease’ for his flat at a particular place was pursued. It was found, the Self Lease Agreement of Shri ABC revealed that he had entered into the self lease agreement of the above flat w.e.f 10.06.05 for a period of five (5) years with OIL. Further, on perusal of his pay slips, it was seen that he was availing “self leased accommodation reimbursement”, up to the month of December 2007. Further, as evident from the address mentioned on his telephone bill dated 28.05.06, for which he had claimed reimbursement from OIL, it revealed that Shri ABC was in fact residing at a different flat in another locality, from the month of April’ 06, in clear violation of the following condition of the self lease agreement which states:

“The above house will be used exclusively by you and your family for your residential purposes and will not be sublet by you or will be given to any other OIL personnel for residential use, nor shall the self-leased accommodation be used for any commercial use / purpose.”

This fact was accepted by Shri ABC and thus, the charge was established.

Conclusion

Shri ABC availed self leased reimbursement for his flat, w.e.f. June10, ‘05 for a period of five (5) years, with the condition that the above house will be used exclusively by him and his family. But he stayed in a rented accommodation at a flat in a different locality, from April, ‘06 to December 31, ‘07. However, it is also pertinent to mention here that Shri ABC had himself informed the Company and had stopped receiving the self-lease accommodation from the month of January, 08 onwards. Disciplinary Authority in October, 2010 was advised to recover from pay the loss caused to the Company being the differential amount between the Self Leased Accommodation Reimbursed and House Rent Allowance, which otherwise he was entitled, together with proportionate recovery of the House Maintenance Allowance (HMA), for the period April-2006 to December-2007 along with the perquisite tax paid by the company.

The officer concerned had claimed reimbursements against self lease and put his “self leased” house on rent which is misconduct under clause 4.1& 4.1.1 of OIL Executives’ CDA Rules.

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CASE STUdY 18

Purchase of Chemical

Background

An NIT was floated for the supply of a drilling well consumable in April, 2007. The eligibility criteria for issue of tender documents was that the party should have executed one order for supplying the material of not less than a value of Rs. 38.85 lakhs in the last five years. The tender papers could be obtained from any office of the company at Duliajan, Noida, Guwahati or Kolkata.

One party M/s XY, Jodhpur lodged a complaint that the party was not issued the tender papers from Duliajan office of the company since it did not satisfy the eligibility criteria of executing one order of value not less than Rs.38.85 lakhs in the last five years. However, the party was issued the tender papers at Noida and Kolkata. It also alleged that the party’s offer was not considered even though they submitted the bid in time.

Facts

The investigations revealed that the documents produced by M/s XY were for an order from Bokaro Steel Plant. The value of the order was Rs. 60.0 lakhs (Rs 25.246 lakhs materials cost and Rs. 34.8894 lakhs transportation cost). The concerned officer at Duliajan rejected their request for issuing the tender documents on the plea that the material cost was only Rs. 25.246 lakhs as against Rs 38.85 lakhs required as per the NIT. Whereas the officers at Noida and Kolkata took the total value of the order i.e. Cost including freight which was Rs. 60.0 lakhs and issued the tender documents.

Further enquiries revealed that till December 2005 i.e. prior to ERP implementation freight charges were not included in calculating order value. But, post ERP implementation total cost of the order was being considered as ‘cost including freight’. However, the junior officer was not aware of this post ERP implementation provision, hence he refused to issue the tender documents at Duliajan.

The instance of not opening bid of the party M/s XY occurred because the bid envelope was not properly marked/super scribed as per tender guideline and hence was not properly identified and could not be accepted.


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The complaint was closed however, DA was advised to issue a caution letter to the Asstt. Purchase Officer in the matter, who had refused to issue the tender documents to M/s XY at Duliajan.

Conclusion

The case emerged due to lack of knowledge of the officer concerned. The resources spent in preliminary investigation of the case could have been saved if the following existed:

Uniform process in evaluating bids. It is well understood that evaluation process varies from tender to tender; however, scope of doubt should be minimized to possible extent, for instance, in this case whether freight charge should be included in calculating the total order value or not should have been clear. An easily accessible repository of these clarifications can be developed.

“To be conscious that you are ignorant of the facts

is a great step to knowledge.”

– Benjamin Disraeli

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CASE STUdY 19

False Claim by a Referral Hospital of oIl

BackgroundA complaint was forwarded by the Management wherein the complainant Shri AB, an employee of the company had alleged that the hospital namely XYZ LTD., where he was treated from 04-01-2010 to 25-01-2010 submitted a bill for an amount of Rs. 1,67,667.00 whereas, at the time of discharge his son-in-law had signed a bill of Rs. 77,210.00 only. However, the bill which was submitted by the hospital was allegedly stated to be signed by his daughter which she denied.

Facts The complaint was assigned for investigation. IO obtained the sample signature of the daughter of the employee, who was identified by her father. The Sample Signature of the daughter of the employee together with her signature on a letter dated 24-05-2010 and two copies of Discharge Certificate and one copy of the bill (disputed documents) were sent to the Forensic Science Laboratory, (FSL) Assam. The Forensic Science Laboratory, Assam has opined that the lady signed the bill and discharge certificate (disputed documents). Statements of the daughter of the employee and his son-in-law were also taken.

CVO advised that a second opinion may be obtained from CFSL, Chandigarh. The observations of the laboratory at Chandigarh remained inconclusive after two attempts. Since opinion of CFSL, Chandigarh remained inconclusive the matter was closed by the order of CVO. However, the office of the CVO concluded that the incident occurred due to the fact that at the time of discharge from the hospital, though the patient or his/her attendant is asked to sign the hospital bills but they are not given a copy of the bill which led to the alleged misappropriation in the bills submitted by the hospital.

Conclusion In view of above, it was advised for a systemic change in the system of processing the bills to the management so that henceforth, the patient who is referred for outside treatment should obtain a copy of bills signed by him/her or his/her attendant at the time of discharge from the hospital and submit the same to his respective HOD/Admin department at the time of joining back for duty. The management issued an advisory in this regard to all the offices of the company which is being adhered to. Thus Vigilance department was able to remove a lacunae in the system.


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CASE STUdY 20

Purchase of oil Well Equipment

Background

A complaint was received in the office of CVO alleging that M/s XYZ supplied one number Oil field equipment at a total cost of Rs. 30 lakhs in Oct.’2009. As per terms of the order, the supplier was to obtain permission from a particular Statutory Authority of Assam for commissioning and operation. Full payment was released in Dec.’2009 violating the payment terms of the order without obtaining Bank Guarantee and satisfactory commissioning of the unit and permission from the Statutory Authority of Assam for commissioning and operation. The equipment should have been of recent make but the one supplied was manufactured old.

Facts

A purchase order was placed on M/s XYZ for the supply of one Oil field equipment. As per terms of the order the supplier had to obtain permission from Statutory Authority, Assam for commissioning/operation of the equipment. They were supposed to submit necessary certificates from the statutory authorities. Payment terms were as under-

• 20%advanceagainstBGonwhichinterestwillbepayablebythesupplier.

• 20%oftheordervalueadvanceonapprovalofdrawingagainstBG.

a. 60% of the order value against dispatch documents through bank against BG with validity upto 30-12-2005 or up to successful installation/commission of the unit. Delivery was to be completed by 31-12-2005

b. The material was delivered on 11-01-2010 against delivery schedule of 15-12-2005. The extension however, was given in the interest of the operation of the company after due deliberation in the LMC without waiver of LD.

c. The unit supplied was different from what was mentioned in the order, however, this happened since the quoted model was no longer in manufacture.

d. The Oil field equipment was successfully commissioned on 10-06-2010.

e. The HOD of the indenting & operating dept. informed that the necessary

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authorization was obtained from the Statutory Body of Assam and a provisional order dated 03-03-2010 as per section 9 of Indian Statutory Act 1923 from Inspector of Statutory was obtained. However, the provisional order is temporary and valid for six months only and in order to continue using the Oil field equipment a permanent order should be obtained by the Dept.

Conclusion

Since no malafide intension could be attributed in the matter, the complaint was closed. However, following were advised for system improvements:

i. While formulating tender documents or finalizing purchase orders ambiguous terms should be avoided.

ii. The pages of the order file should be numbered.

iii. Action should be initiated to obtain a permanent certificate against the provisional certificate required for the particular unit under discussion.


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CASE STUdY 21

Non levy of liquidated damages

Background

A complaint was forwarded by Central Vigilance Commission (CVC) for non levy of LD amounting to Crores of Rupees for a delayed supply by M/s XYZ . The case was investigated and report submitted to CVC .

Facts

A Purchase Order was placed on L1 bidder M/s XYZ (after reverse auction) for supply of material at FOR destination. Estimated total value was about Rs 20 crores. The supplier manufactured the materials and got them inspected and cleared by Third Party Inspection (TPI) agency and then requested within schedule delivery time to transport the materials by multimodal transportation, i.e. by rail cum road. They offered to bear any additional cost and also to pass on any savings if the transportation cost is less than the order value.

Initially local authorities decided not to change the mode; the decision was conveyed to M/s XYZ by OIL. The party requested OIL many times and continuously followed up their request for few months to convince management that transportation by rail cum road will be the safest mode of transportation. Finally local management agreed to the request and amended the mode of dispatch from road to ‘rail cum road’. Since several months passed in the process, the supplier (M/s XYZ) requested for extension of delivery period.

The matter was deliberated again after about five months from the schedule date of delivery and decisions were taken:

i) To agree to supplier’s request to amend the mode of transportation from road to road cum rail provided supplier agree to reduce the FOR destination price of the order by an amount of about Rs 60 lakh. (being the difference between OIL’s calculated freight and the freight mentioned by the vendor.)

ii) The supplier should provide documentary evidence for road cum rail freight from factory to destination and if the actual freight is found to be lower than the freight

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mentioned in the order, OIL shall pay the lower amount on account of above transportation.

iii) Date of completion of third party inspection to be considered as the date of delivery for the purpose of ascertaining delivery period of the order.

This decision was conveyed to M/s XYZ and amendment to PO was issued .

The vendor dispatched the entire quantity by road, since NE Railways had closed the inwards booking to the desired Railway Sliding. Earlier it was being argued that the road transport mode will not be safe.

observations

1 Having decided to stick to the original terms of Contract, a decision to reverse this was taken.

2 There was an inordinate delay in deciding about the transportation mode and this resulted in delay of supply of materials by a period of 8 months without levying any LD.

3 By deciding to consider the third party inspection date as the delivery date, the party was favoured which led to not imposing LD amounting to more than a crore of rupees.

Actions

1. LD of more than one crore rupees was recovered from the Party.

2. As per advice from CVC Concerned authorities were cautioned.

lessons from the case

A wrong decision taken by an individual officer or by a committee of officers is a wrong decision. In the case of a committee, the members are jointly and equally responsible.

It is unwise to be too sure of one’s own wisdom. It is healthy to be reminded that the strongest

might weaken and the wisest might err.– Mahatma Gandhi


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– Mahatma Gandhi




Richard P. Feynman

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A COMPILATION BY

VIGILANCE DEPARTMENT


DOING THINGS RIGHT

Registered Offi ce:P.O. Duliajan

Dist. DibrugarhAssam - 786 602

Ph: 0374 2800427 Fax: 0374 2800522

Corporate Offi ce: OIL House, Plot Number 19, Sector 16A, Noida, District Gautam Budh Nagar, Uttar Pradesh 201301, IndiaTel: +91 (120) 2488 333

www.oil-india.com

Disclaimer : All the Episodes published here are based on supplements from Internal Contributors/Authors, solely for the academic purpose of knowledge sharing. Editorial Team does not take responsibility whatsoever for the published information.

“ If you tell the truth

you don’t have to

remember anything.”– Mark Twain

Documents

Selected Case Studies - Oil India Things Right.pdf · Mr. Arun Kumar Dutta, Head Elect (E&P) Retd. 46 10 A Unique Troubleshooting Wit - Mr. Soumendra Kumar Choudhury, Manager (F&A),