BOARD'S REPORT

Dear Shareholders,

It gives me great pleasure to present, on behalf of the Board of Directors of your Company, the 22nd Annual Report on the business and operations of Oil And Natural Gas Corporation Ltd. (ONGC) and its Audited Statements of Accounts for the year ended March 31, 2015, together with the Auditors' Report and Comments on the Accounts by the Comptroller and Auditor General (CAG) of India.

Your Company along with its group companies has registered yet another year of sustained performance. Exploration and production of crude oil and gas, our core business, set various milestones during the year. Besides that performance in the areas where ONGC has engaged substantially also witnessed success with positive contributions.

ONGC has steadfastly focussed on organic growth through its exploratory endeavours and build a healthy reserve profile for the future. During FY'15, the Company registered Reserve Replacement Ratio (RRR) of 1.38 (with 2P reserves) with 22 oil and gas discoveries in various basins of  the country. This has been possible because of extensive exploration in known basins as well as frontier plays. Domestic crude oil and natural gas production of ONGC along with its share in the domestic joint ventures (PSC-JVs) during FY'15 has been 49.46 million metric tonnes of oil and oil equivalent gas (MMtoe) which is about 2.7% lower than FY'14 production (50.84 MMtoe). On standalone basis crude oil production from ONGC operated fields has been 22.26 million metric tonnes (MMT) against production of 22.25 MMT during FY'14. This goes to the credit of your Company that production decline could be arrested due to prudent reservoir management practices adopted in the matured fields and bringing new fields on stream.

Major Highlights: FY'2014-15

Salient highlights with respect to performance of your Company during FY'2014-15 are as below:

• 22 oil & gas discoveries in domestic acreages with accretion of 61.05 MMToe of 2P reserves.

• RRR (2P) for FY'2014-15 was 1.38; in excess of One consecutively for 9 years.

• Despite natural decline in matured fields, crude oil production from domestic fields maintained at 25.94 MMT. Major upside in production was registered from the Western offshore fields with incremental oil gain of 4.3%.

• New and marginal fields contributed about 12.3% of crude oil (2.74 MMT out of 22.26 MMT from domestic operated fields) and 15.2% of natural gas production (3.35 BCM out of 22.02 BCM from domestic operated fields). 34.5% of crude oil production was contributed by the IOR/EOR and redevelopment schemes.

• The gross revenue from operations during FY'2014-15 has been Rs.830,935 million; 1.3% lower than FY'14.

• Rs.362,996 million contribution towards sharing the under-recoveries of OMCs during FY'2014-15 impacting ONGC's Profit Before Tax (PBT) by Rs.309,596 million and Profit After Tax (PAT) by Rs.204,370 million. Despite this Net Profit has been Rs.177,330 million; 19.7% lower than the profit during previous year FY'2013-14.

• Hon'ble Prime Minister Mr. Narendra Modi dedicated the 2nd unit of OTPC Power Plant at Palatana, Tripura, to the Nation on December 1, 2014. The 726.6 MW gas-based power plant of ONGC Tripura Power Company is the biggest project in North East part of India in terms of investment in E&P, gas and power transmission. It is also credited as the largest Clean Development Mechanism (CDM) projects of the world.

• Your Company decided to invest Rs.249,000 million in five major projects in estern Offshore for sustaining crude oil and gas production.

• HRD process platform of ONGC was installed successfully on January 15, 2015 using the state-of-the-ar t Float-Over technology. This is the first such endeavour in the history of ONGC, where installation of an add-on platform with the existing operational platform has been completed successfully.

•The operationalization of FPSO at Cluster-7 project on February 26, 2015 resulted in doubling the crude oil production from around 7,500 barrels per day (bpd) to around 15,000 bpd.

•ONGC Videsh Ltd. (100% subsidiary of your Company) registered 8.87 Mmtoe of O+OEG production during FY'2014-15 against 8.36 Mmtoe during FY'2013-14. Production upside primarily came from BC-10 field in Brazil, blocks in Myanmar and the Sakhalin project in Russia.

•Despite higher production, ONGC Videsh's Revenue during FY'2014-15 has been down by 14% due to lower oil prices globally. PAT has been down by 57% due to lower oil prices, exchange losses, higher financing cost and higher depletion charges.

•During the year ONGC Videsh made a maiden venture in New Zealand with exploratory acreages.

•MRPL commissioned all the units under Phase-III refinery expansion project during the year and registered the highest-ever thru-put of 14.65 MMT

• Turnover of MRPL for the year was down by 17% due to lower products' prices and it registered a net loss of Rs.11,700 million against Net profit of Rs.6,010 million in FY'2013-14 due to exchange and inventory losses.

Besides excellence in core operational activities your Company positioned itself as a valuable corporate citizen through its mapped defined actions towards inclusive growth of the Society/Community and green initiatives as per the commitment and our performance was globally recognized. ONGC was ranked at 183rd position among 2000 top global companies in Forbes Global 2000 list published in May'2015. In the global oil and gas operation industry, ONGC has moved up three places to occupy the 18th position. ONGC has been ranked as the Top energy company in India, in the coveted Platt's Top 250 Global Energy Company Rankings 2014. ONGC improved upon its global ranking by a notch to be positioned 21st among the global energy majors. ONGC has also maintained its position as the 3rd largest Exploration and Production (E&P) company in the world. In the latest Newsweek Green Rankings, the world's most recognized assessment of corporate environmental performance, ONGC has made a quantum leap to be ranked 217 globally (it was positioned 386th in 2012 Green rankings). The company now stands third amongst only seven Indian companies named in the prestigious list.

Performance 2014-15

Exploration

During the year 2014-15, ONGC has made 22 Oil and gas discoveries in domestic acreages (operated by ONGC). Out of 22, 10 discoveries are in Offshore and 12 in Onshore; 10 discoveries were made in the new prospects whereas 12 were new pool discoveries. 7 discoveries were made in NELP blocks and 15 in nomination blocks.

Two discoveries (Rudrasagar-184 & Gandhar-699) during 2014-15 in nomination blocks have already been put on production and efforts are on for bringing the other discoveries on production as early as possible. 7 discoveries in NELP blocks (5 Onland, 2 Offshore) are governed by the PSC guidelines and appraisal/  development activities will be taken up keeping in view the timelines of the respective blocks. In addition to these discoveries, exploratory wells conclusively tested and proved to be hydrocarbon bearing will help in field growth of existing fields. Details of the discoveries are as under:

Details of the discoveries in NELP blocks (since inception till 01.04.2015)

Out of the 114 NELP blocks awarded to/ acquired by ONGC as operator, currently ONGC is operating in 49 blocks, balance 65 blocks have been relinquished. Exploration/ appraisal programme is underway in all the active blocks. A total of 47 discoveries as on date (16 in deep-water, 13 in shallow water and 18 in onland) have been made by ONGC in 22 of these NELP blocks (6 deep-water, 6 shallow water & 10 onland). Commencement of production from these discoveries is governed by stipulations laid down in the respective PSCs and is to be taken up after successful completion of appraisal programme followed by submission of DOC and approval of Field Development  Plan. ONGC has put three NELP Blocks on Commercial  Production:

a.  NELP Block CB-ONN-2004/1 (Karannagar)

Onshore NELP Block CB-ONN-2004/1 (Karannagar) located in Ahmedabad was put on commercial production on 24.03.2015 within 24 hours of getting the Mining Lease. This NELP block was awarded to consortium of ONGC and GSPC in VI round of NELP bidding in 2007. ONGC is the operator of block with 60% participatory interest.

b.NELP block CB-ONN-2004/2 (Vadatal)

Vadatal-1 in the NELP block CB-ONN-2004/2 (Vadatal)  was put on production on March 26, 2015. The NELP block CB-ONN-2004/2 was awarded to a consortium of ONGC and GSPC in VI round of NELP bidding in 2007. ONGC is the operator of the block (PI: 55%) with partner GSPC (PI: 45 %.).

c. NELP block CB-ONN-2002/1 (West Patan)

West Patan #3 well in the NELP block CB-ONN-2002/1 (est Patan) was put on commercial production on 31.03.15 on the same day of getting the Mining Lease from the Govt. of Gujarat. The block CB-ONN-2002/1, covering 135 sq. km and falls in the northern part of the Cambay Basin and is located west of Patan town in North Gujarat.

Reserve accretion & Reserve Replacement Ratio (RRR)

Continuing exploration in challenging and frontier areas, your company has accreted 215.65 million metric tonnes of oil equivalent (MMtoe) of In-place volume of hydrocarbon in  the domestic basins (operated by ONGC). As on 01.04.2015, in-place hydrocarbon volume of ONGC as a group stands at 9,283.84 MMtoe; up 4.2% from FY'2013-14 figure of 8,912.81 MMtoe. The ultimate reserves (3P) accretion in domestic area (ONGC operated) during FY'2014-15 has been 70.98 MMtoe and 2P reserve accretion has been 61.06 MMtoe. Total reserve accretion during 2014-15 in domestic basins including ONGC's share in PSC JVs stands at 60.03 MMtoe. Voluntary disclosures in respect of Oil & Gas Reserves, conforming to SPE classification 1994 and US Financial Accounting Standards Board (FASB-69) have been made by your Company.

The following table gives the details of reserve accretion (2P) for the last 5 years in domestic basins as well as from the overseas assets:

Statement of Reserve Recognition Accounting (RRA)

Reserve Recognition Accounting is a voluntary disclosure towards recognizing income at the point of discovery of reserves and seeks to demonstrate the intrinsic strength of an organization engaged in exploration and production of hydrocarbons with reference to its future earning capacity in terms of current prices for income as well as expenditure. This information is based on the estimated net proved reserves (developed and undeveloped) as determined by the Reserves Estimates Committee of the Company.

As per FASB-69 on disclosure about Oil and Gas producing activities, publicly traded enterprises that have significant Oil and Gas producing activities, are to disclose with complete set of annual financial statements, the following supplemental information:

a) Proved Oil and Gas reserve quantities

b) Capitalized costs relating to Oiland Gas producing activities

c) Cost incurred for property acquisition, exploration and development activities

d) Results of operations for Oil and Gas producing activities

e) A standardized measure of discounted future net cash flows relating to proved Oil and Gas reserve quantities

Your Company has disclosed information in respect of (a) to (d) above in the Annual Financial Statements.

Your Company has also made voluntary disclosure on standardized measure of discounted future net cash flows  relating to proved oil and gas reserve at Annexure-A' to this report as statement of Reserve Recognition Accounting  (RRA).

Oil & Gas production

During FY '15, your Company retained its position as the largest producer of oil and gas in the country and contributed 69 per cent of oil and 70 per cent of natural gas production of the country from its domestic operations. On  standalone basis, in FY'15 ONGC's domestic crude oil production registered 22.26 MMt against 22.25 MMt in FY'14, reversing the production decline in domestic fields. The major contribution came from estern Offshore, which produced 4.3 per cent more than the production during last year.

Details of crude oil and natural gas production from domestic basins along with that of Value Added Products (VAP) are as below

Oil & Gas production of ONGC Group, including PSC-JVs and from overseas Assets for FY'15 has been 58.33 MMtoe (against 59.21 MMtoe during FY'14).

Out of the total production of 31.47 MMT of crude oil, 70.8 per cent production came from ONGC operated domestic fields, 17.5 per cent from the overseas assets and balance 11.7 per cent from domestic joint ventures. As far as natural gas production is concerned, majority of production (82 per cent) came from ONGC operated domestic fields, 12.4 per cent from overseas assets and 5.6 per cent from domestic joint ventures.

Production from overseas assets

ONGC Videsh, has thirteen (13) producing assets in ten countries - Venezuela (1), Brazil (1), Colombia (1), Sudan (1), South Sudan (2), Syria (1), Vietnam (1), Mayanmar (2), Russia (2) and Azerbaijan (1).

Total production from these overseas assets during FY'15 has been 8.87 MMtoe of O+OEG (Crude oil: 5.53 MMT & Gas: 3.34 BCM).

Ajerbaijan has contributed 12% as compared to around 0.1% last year. Resumption of operations in South Sudan & Sudan has also contributed to this year's increased volume contributing 13.2% this year as compared to 8.2% last year. Russia & Vietnam continued to be the biggest contributor to overseas production volume with 29.4% and 23% respectively.

Unconventional sources of energy

ONGC plans to continue its endeavor for exploration and development of Unconventional & other resources like Shale Gas, CBM, etc. ONGC has prioritized suitable actions for exploration and exploitation of Non-Conventional and Alternate Sources of energy which has the potential to change the energy business landscape in the country as it is happening in the other parts of the world. The initiatives by ONGC in these areas are summarized below;

a. Shale Gas

ONGC has the distinction of establishing the first flow of shale gas in the country on 25th January, 2011 from RNSG#1 well (R&D Pilot Project, Durgapur).

ONGC has chalked out plan of drilling of pilot shale gas and oil wells in most of the identified blocks in Cambay,Krishna-Godavari,Cauvery and Assam &Assam-Arakan Basins. During October, 2013 Government of India brought out shale gas policy which allows National Oil Companies viz. ONGC and OIL to initiate shale gas and oil assessment activities in their allocated nomination blocks in phased manner. As per the new Policy, 50 nomination PML blocks have been identified in four Basins - 28 PMLs in Cambay, 3 PMLs in A&AA, 10 PMLs in Krishna-Godavari and 9 PMLs in Cauvery basins for Shale Gas assessment within three year period of Phase-I. A total of 57 pilot/assessment wells are to be drilled by April, 2017

During 2014-15, ONGC has drilled five exploratory wells for shale gas exploration (4 dual and 1 exclusive) in Cambay, Cauvery, Krishna-Godavari and Assam-Arakan Basins and samples have been collected for assessment of Shale Gas potential. Most of the studies in wells drilled last year have been completed and the integration/ assessment exercise is in progress. Based on the review of data collected in wells JMSGA and GNSGA, prospective intervals have been identified in Cambay Shale which are planned to be hydro-fractured shortly. Presently, 2 Shale gas wells (GNSGB & GNSGC, Cambay Basin) and 1conventional well with dual objective (WPGAA,KG Basin) are under drilling.

b. Coal Bed Methane (CBM)

Of the total thirty-three CBM Blocks awarded by GOI to various operators through four rounds of bidding and nomination, ONGC was awarded nine CBM blocks. Due to poor CBM potential, concluded on the basis of the data generated in the exploratory activities, five Blocks viz. Satpura (Madhya Pradesh), ardha (Maharashtra), Barmer-Sanchor (Rajasthan), North Karanpura (est) and South Karanpura (Jharkhand) have been relinquished.

Currently, ONGC is operating four CBM Blocks i.e., Jharia, Bokaro, North Karanpura (Jharkhand) and Raniganj (est Bengal),FDP of which has been approved. Nearly 400 wells and 2000 hydro-fracturing jobs have to be carried out in the coming 4-5 years as per timelines of the CBM Contract. In view of the mammoth and time bound task, ONGC is in the process of farming out its participative interest (PI) to experienced CBM players through formation of JV. Farm out Agreement (FoA) for North Karanpura Block has been signed on October 7, 2014 with M/s Prabha Energy Pvt. Ltd (PEPL) with assignment of 25% PI from ONGC's share. Documents have been submitted to DGH for Government's approval of PI assignment. Joint Venture for farming out in Bokaro Block is being negotiated. Further, of fers for formation of Joint Venture for Jharia and Raniganj blocks are being invited. Sale of incidentally CBM gas from existing wells at Parbatpur of Jharia block is continuing and as on April 1, 2015 cumulative gas supply has been 13,875,102 SCM.

c. Underground Coal Gasification (UCG)

ONGC with GIPCL selected Vastan Mine block site in Gujarat as an R&D project to establish UCG technology. All the ground work and inputs for construction and implementation of UCG Pilot Project at Vastan, has been completed and further development is awaiting award of Mining Lease by Ministry of Coal (MoC), GoI.

Further, a number of sites have been jointly identified by ONGC & Neyveli Lignite Corporation Limited (NLC) for studying their suitability to UCG. These are Tadkeshwar in Gujarat and Hodu-Sindhari & East Kurla in Rajasthan. One more site was jointly identified by ONGC & GMDC viz. Surkha in Bhavnagar district, Gujarat. The data of all the fields have already been analyzed for evaluating the suitability of these sites for UCG. All the sites have been found suitable for UCG exploration.

Oil & Gas Projects

In recent years your Company took up 15 projects for development of 39 new/marginal oil and gas fields with an investment of Rs.386,024 million. Out of these 15 projects, 11 projects have already been completed. Production from development of G-1 & GS-15 fields has already commenced. Rest three projects, Development of WO-16 Cluster, C-26 Cluster and B-127 Cluster, are under implementation and are expected to be completed in FY'17. Further, Improved Oil Recovery (IOR), Enhanced Oil Recovery (EOR) and redevelopment projects were also taken up by your Company for prudent reservoir management and arresting decline from matured fields. 21 of 26 such projects have so far been completed. Two projects i.e., "Heera & South Heera Redevelopment Project" and "Development of Western Periphery of Mumbai High South" project is likely to be completed by Mid FY'16 and the remaining three projects i.e., "Redevelopment of Mumbai High North Phase-III", "Redevelopment of Mumbai High South Phase-III" and "Additional development of Vasai East" will be completed by the year 2017-18.

Details about the projects completed during the year 2014-15, new projects taken up are given as below:

The decrease in Profit during FY 14 -15 as compared to FY 13-14 is mainly due to higher exploratory wells written off and reduction in quantity sold as well as lower price realization of value added products. Pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014, a separate statement containing the salient features of the financial statement of its subsidiaries, associate company and joint venture in Form AOC-1 forms part of the Financial Statements.

2. Dividend

Your Company paid interim dividend of Rs. 9.00 per share (180 per cent) in two phases(Rs.5.00 and Rs.4.00). The Board of Directors has recommended a final dividend of Rs. 0.50 per share(10 per cent) making the aggregate dividend at Rs.9.50 per share (190 per cent) for FY 14-15 i.e. same as compared to dividend for the year 2013-14. The total dividend will be Rs.81,278 million, besides Rs.16,256 million as tax on dividend amounting to 55% of PAT.

3. Management Discussion and Analysis Report

As per the terms of Clause 49VIIID of the Listing Agreement with the Stock Exchanges, the Management Discussion and Analysis Report (MDAR) has been included and forms part of the Annual Report of the Company.

4. Financial Accounting

The Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with all applicable Accounting Standards and Successful Efforts Method of accounting as per the Revised Guidance Note on Accounting for Oil & Gas Producing Activities issued by The Institute of Chartered

Accountants of India (ICAI) effective from 01.04.2013 and provisions of the Companies Act, 2013. Further, as per Ministry of Corporate Affairs (MCA) notification, the financial statements have been prepared under the Schedule III format of the Companies Act, 2013.

Loans, Guarantees or Investments

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

Related Party Transaction

Particulars of contracts or arrangements with related parties referred to in Section 188 of the Companies Act, 2013 in the form AOC-2 form part of Board's Report and placed at Annexure-B. 5. Subsidiaries

I ONGC Videsh Limited (ONGC Videsh)

ONGC Videsh, the wholly-owned subsidiary of your Company for E&P activities outside India, has participation in 36 projects in 17 countries viz., Azerbaijan, Bangladesh, Brazil, Colombia, Iran, Iraq, Kazakhstan, Libya, Mozambique, Myanmar, New Zealand, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam. Out of 36 projects, 13 are producing, 4 are discovered/ under development, 17 are exploratory and remaining 2 are pipeline projects.

ONGC Videsh is currently producing about 167 thousand barrels of oil and oil equivalent gas per day and has total oil and gas (2P) reserves of about 612 MMtoe as on 31st March 2015. During FY'15, there is an increase in oil and gas production by 6.19% (Oil 0.86% and Gas 16.37%) as compared to previous fiscal year. The incremental  production is primarily due to better management of fields  and addition in the portfolio.

ONGC Videsh's share in production of oil and oil equivalent gas (O+OEG), together with its wholly-owned subsidiaries, ONGC Nile Ganga B.V., ONGC Amazon Alaknanda Limited, Imperial Energy Limited and Carabobo One AB, was 8.874 MMtoe during FY'15 as compared to 8.357 MMtoe during FY' 14. The oil production increased from 5.486 MMT during FY'14 to 5.533 MMT during FY'15 (0.86% higher) primarily due to increased share of additional 12% PI in Block BC-10, Brazil.

During FY'15, the company has earned profit after tax of Rs. 19,042 million, a decrease of 57% as compared to FY'14. Despite higher production during FY'15, the decrease in profit is mainly due tolower oil prices, higher financing cost including exchange loss, higher depletion charge, and impairment provision in one of the assets.

(A) Significant Acquisitions, Alliances and Operations highlights of ONGC Videshduring FY'15 are as follows:

a) Block PEP 57090, New Zealand: ONGC Videsh was awarded an exploration permit PEP 57090 in the Taranaki offshore basin by Government of New Zealand on 9th December, 2014. ONGC Videsh has now started operations in Pacific Region.

b) During FY'15, ONGC Videsh has signed the following MoUs:

(i) MoU with ROSNEFT was executed on 24th May, 2014 for cooperation in subsurface surveys, exploration and appraisal activities and hydrocarbon production in Russia's offshore Arctic.

(ii) MoU with TPAO (the Turkish Petroleum

Company) was executed on 18th June 2014 for working together for E&P activities in Turkey, joint participation in bidding for opportunities including exploration bid rounds in third countries and pursuit of hydrocarbon opportunities related research and development activities.

(iii) MoU with YPF S.A. Argentina was executed on

1st September, 2014 for working to explore possibility of cooperation in the areas of Unconventional and Conventional Hydrocarbon Assets in Argentina, E&P activities in India and in third countries, research & development activities and human resources development.

(iv) LoI with Petro Vietnam was executed on 15th September, 2014, for expansion of exploration activities by ONGC Videsh in Vietnam by considering participation in 2-3 additional blocks subject to technical and commercial viability and requisite approvals.

(v) MoU with Pemex-Exploracion Y Produccion (PEP) was executed on 25th September, 2014, for cooperation in the hydrocarbon sector in the fields of technology, human resources, research & development.

(vi) MoU with Mubadala Petroleum, UAE was executed on 29th September, 201 4, for collaboration in potential upstream oil & gas exploration, development and producing projects and LNG opportunities.

(vii) HoA with PVEP was executed on 28th October, 2014, for mutual cooperation and participation in Blocks 102/10 & 106/10 of PVEP and Block 128 of ONGC Videsh in offshore Vietnam subject to due diligence and negotiations on the terms of participation.

(c) Operations

i. In Sakhalin-1 Project, the topside of "Berkut"-world's biggest offshore platform in Arkutun-Dagi field, was successfully floated over from South Korea to Russia and installed on 20th June, 2014 with production commencing from 5th January, 2015.

ii. Gas Export Pipeline Remediation project in Block BC-10, Brazil was successfully commissioned on 1st November, 2014 leading to gas export about 0.27 MMSCMD.

iii. In A-1/A3 Project, Myanmar, plateau gas production rate of 14.2 MMSCMD was achieved on 2nd December, 2014.

iv. Oil production from Petro Carabobo, Venezuela, crossed 16,000 BOPD on 16th March, 2015 with average oil production of 9,775 BOPD during FY'15 as compared to 3,293 BOPD during FY'14.

v. First crude oil cargo of 1.2 million barrel of Petro Carabobowas lifted by RIL on 25th May, 2014 from Venezuela.

vi. The ongoing geo-political situation in Syria including EU sanctions and the resulting restrictions on contractors continue adversely affecting Syrian operations since December, 2011.

vii. The operations in South Sudan projects are temporarily under shutdown after internal conflicts and adverse security situation in the country since 22nd December, 2013. The operations in South Sudan shall resume once security situation improves.

Direct Subsidiaries of ONGC Videsh

i. ONGC Nile Ganga B.V. (ONGBV)

I ONGBV, a subsidiary of ONGC Videsh, is engaged in E&P activities in Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25 per cent Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 0.705 MMT during 2014-15. ONGBV also holds 25 per cent PI in Greater Pioneer Operating Company (GPOC), South Sudan. Due to adverse geo-political conditions, ONGC Videsh could not produce in GPOC, South Sudan during FY'15.

ONGBV holds 16.66 per cent to 18.75 per cent PI in four Production Sharing Contracts in Al Furat Project (AFPC), Syria. Due to force majeure condition in Syria, there was no production in AFPC project during FY'15. ONGBV holds 40 per cent PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil production of about 0.645 MMT during FY' 15. ONGBV holds 27 per cent PI in BC-10 Project in Brazil through its wholly owned subsidiary ONGC Campos Ltd. with its share of oil and gas production of about 0.854 MMtoe during FY' 15. It also holds 25 percent PI in Block BM-SEAL-4 located in deep-water offshore, Brazil through its wholly owned subsidiary ONGC Campos Ltd. ONGBV also holds 8.347 per cent PI in South East Asia Gas Pipeline Co. Ltd., (SEAGP) for Pipeline project, Myanmar through its wholly owned subsidiary ONGC Caspian E&P B.V.

ONGC Narmada Limited (ONL)

I ONL has been retained for acquisition of future E&P projects in Nigeria.

iii ONGC Amazon Alaknanda Limited (OAAL)

OAAL, a wholly-owned subsidiary of ONGC Videsh, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China. During FY' 15, ONGC Videsh's share of oil production in MECL was about 0.626 MMT.

iv. Imperial Energy Limited

Imperial Energy Limited, a wholly-owned subsidiar y of ONGC Videsh incorporated in Cyprus, has its main activities in the Tomsk region of Western Siberia, Russia. During FY’ 15, Imperial Energy’s oil and gas production was about 0.289 MMToe.

v. Carabobo One AB

Carabobo One AB, a subsidiary of ONGC Videsh incorporated in Sweden, indirectly holds 11 per cent PI in Carabobo-1 Project, Venezuela. During FY' 15, Carabobo's oil production was about 0.066 MMT.

vi. ONGC (BTC) Limited :

ONGC (BTC) Limited holding 2.36 per cent interest in the Baku-Tbilisi-Ceyhan Pipeline ("BTC") owns and operates 1,768 km oil pipeline running through Azerbaijan, Georgia and Turkey. The pipeline mainly carries crude from the ACG fields from Azerbaijan to the Mediterranean Sea.

vii. Beas Rovuma Energy Mozambique Limited:

Beas Rovuma Energy Mozambique Limited was incorporated in British Vergin Islands (BVI) and holding 6% PI in Rovuma Area 1, Mozambique.

viii.ONGC Videsh Atlantic Inc.:

ONGC Videsh Atlantic Inc. is incorporated in Texas, United States of America, to work in co-ordination with Anadarko (Operator of Rovuma Area 1, Mozambique) and to establish G&G centre etc.

ix. ONGC Videsh Rovuma Limited:

ONGC Videsh Rovuma Limited was incorporated in Mauritius for structuring of 10% PI in ONGC Videsh's Rovuma Area 1, Mozambique.

II Mangalore Refinery and Petrochemicals Limited (MRPL)

Your Company continues to hold 71.62 per cent equity stake in MRPL, a Schedule A Mini Ratna, which is a single location 15 MMTPA Refinery on the West coast.

Performance Highlights FY 2014-15

MRPL achieved the highest-ever thru'put of 14.65 MMT in FY 14-15 against 14.55 MMT in FY 13-14 .

MRPL exported 4.98 MMT of products against 6.72 MMT in the previous year. The exports were low compared to the previous year due to the commissioning of Delayed Coker Unit and increased domestic sale of Kerosene and HSD .

Crude sourcing (Receipts): 14.35 MMT; Iran (34.83 per cent), Saudi Arabia (19.67 per cent), ADNOC (12.12 per cent), Kuwait (15.12 per cent), Basrah Light (0.8 percent) Mumbai High (5.03 per cent), Ravva and KG basin (3.50 per cent) Sonangol (3.81 percent) Spot (5.12 per cent).

Marketing and Retail Operations

MRPL continues to expand its market spread in the direct sales segment of petroleum products in the state of Karnataka and its adjoining states. MRPL has significant market share and direct customer relations for products such as Bitumen, Fuel Oil, Sulphur, Diesel, Petcoke and Mixed Xylene in its refinery zone. The total sales volume of direct marketing products during the FY 2014-15 was 820 TMT with a sales value of Rs. 22,970 million compared to volume of 507 TMT and sales value of Rs. 25,890 million in the previous FY 2013-14.

Phase III - Brownfield expansion Project

All the units of MRPLs Phase III up-gradation and expansion project have been commissioned . The Polypropylene unit was inaugurated by Hon'ble Minister (I/C) P&NG on  05-04-2015.

Acquisition of controlling stake in OMPL

MRPL has increased its stake in OMPL to 51 % by subscribing to the right issue made by OMPL Subsequently OMPL has become subsidiary of MRPL and a Government company under Companies Act, 2013.

6. Annual Report of Subsidiaries and Consolidated

Financial Statement

In accordance with Section 134 of the Companies Act, 2013 and the Accounting Standard (AS)-21 on "Consolidated Financial Statements" read with AS-23 on "Accounting for Investments in Associates" and AS-27 on "Financial Reporting of Interests in Joint Ventures", audited Consolidated Financial Statements for the year ended 31st March, 2015 of the Company and its subsidiaries form part of the Annual Report.

Full Annual Report of subsidiaries of ONGC will be made available to any shareholder, if he/she desires, which is also available on Company's website. Further, Annual Reports of MRPL and ONGC Videsh are also available on website www.mrpl.co.in and www.ongcvidesh.com respectively.

7. Joint Ventures/ Associates

ONGC Petro-additions Limited (OPaL)

ONGC Petro-additions Limited (OPaL), has been promoted by your company asa Joint Venture (JV) Company, with envisaged  equity stake of 26% along with GAIL (15.5%). GSPC also has a token presence in OPaL.

The balance equity of 58.5% isStrategic Partners/ FIs / IPO. to ject be tied up with OPaL is a mega petrochemical pro at Dahej SEZ for utilizing in-house production of C2-C3 and Naphtha from various units of ONGC.

Present status

Overall Cumulative progress is 95 %.  i.s ct  Total cumulative expenditure as on 31st March 2015 5 213,110 million. Approved project cost is 5270,110 million

• Debt closure has been attained for approved proje  cost of 5 270,110 million with the execution of Rupee Term Loan agreement.

• Phase-wise commissioning of the complex has commenced with stabilized operations envisaged in Q3  2015-16.

ii. ONGC Tripura Power Company Ltd (OTPC)

Your Company has promoted OTPC I with an envisaged stake of 50% along  ome.iwMo.roij.L with Govt. of Tripura (0.5%) and IL&FS Energy Development Co. Ltd. (IEDCL-an IL&FS subsidiary) (26%); the balance 23.5% has been tied up with India Infrastructure Fund-II acting through IDFC alternatives Limited.  OTPC has set up a 726.6 MW (2 X 363.3 MW) gas based Combined Cycle Power Plant (CCCP) at Palatana, Tripura. The basic objective of the project is to monetize idle gas assets of ONGC in land-locked Tripura state and to boost exploratory efforts in the region.

Present Status

• OTPC's first unit (Unit-1) was dedicated to the Nation by the Hon'ble President of India on 21stJune, 2013 and its commercial operation was achieved on 4thJanuary 2014 in presence of representatives of beneficiary states. The second unit was dedicated to nation by Hon'ble Prime Minister of India on 1st December, 2014 and its commercial operation was achieved on 24th March, 2015.

The Plant has been granted provisional tariff by Central Electricity Regulatory Commission (CERC). The Ministry of Power has allocated more than 86% of power from the project (two units) to the NER beneficiary states while 98 MW is allocated to OTPC for merchant sales. The OTPC has signed a gas sale and purchase agreement (GSPA) with ONGC for supplying Daily contracted Quantity of 2.65 MMSCMD of gas.

• The 663 KM long 400 KV double circuit transmission network Palatana-Bongaigaon transmission has been commissioned up to Bongaigaon by North-East Transmission Company Limited (NETCL), a joint venture of Power Grid Corporation, OTPC and Governments of the North-Eastern states. This development is helping in evacuating power from both Unit-1and Unit-2.

• The total expenditure incurred on the project till 31st March, 2015 is Rs.37511 million against the total estimated cost of Rs.40,470million.

iii. ONGC Mangalore Petrochemicals Limited (OMPL)

Your company has promoted OMPL which has set up Aromatic Complex with an annual capacity 914 KTPA of Para-xylene and 283 KPTA of Benzene in Mangalore Special Economic Zone as value chain integration project of ONGC. The total project cost is about 568,750 million and commenced commercial operation from 1st October, 2014. 2,59,618 MT of Para-xylene and 61,788 MT of Benzene, have since been exported in the financial year, as the production is being ramped up. After successful commissioning of OMPL in October, 2014, MRPL has increased its equity from 3% to 51.002% in February, 2015 with balance 48.998% held by ONGC and thus OMPL has become a subsidiary of MRPL.

iv. Dahej SEZ Ltd (DSL)

Your company as Lead Promoter has developed a multi-product SEZ at Dahej in coastal Gujarat .Your Company is setting up C2-C3 Extraction Plant on its own and value-chain integration project

OPaL through JV route in this SEZ Area. Your company has 23% equity in the project with GIDC having 26% and balance 51% is proposed to be tied up through IPO / Strategic / Financial Investor.

Present status:

• SEZ is already operational and units in SEZ have clocked export of Rs.19,740 million in FY 2013-14 and 521,050 million in FY 2014-15.

v. Mangalore Special Economic Zone Limited (MSEZ) with an envisaged equity stake of 26%

along with KIADB (23%), IL&FS (50%),  OMPL (0.96%) and KCCI (0.04%), ONGC has set up MSEZ to serve as site for development of necessary infrastructure to facilitate and locate ONGC/MRPL's Aromatic complex being promoted by ONGC.

Present Status:

Commercial Operation Date (COD) has been declared  on 1st April, 2015.

vi. Petronet MHB Limited (PMHBL)

PMHBL is a JV company wherein your company has an equity stake of 28.7% along with HPCL (28.7%) and PIL Petronet MHB limited (7.9%) with balance 34.57per cent of equity being held by leading banks.

• PMHBL owns and operates a multi-product pipeline to transport MRPLs products to the hinterland of Karnataka.

• In FY'15 PMHBL pipeline has achieved a throughput of 3.141MMT against total throughput of 3.073 MMT last year. As per audited results for the year 2014-15, the turnover and PAT of PMHBL are Rs.1,071 million and Rs. 341million respectively.

vii. ONGC TERI Biotech Limited (OTBL)

ONGC TERI Biotech Limited  ( O TB L ) wh i c h was incorporated on 26th March,  2007 is a Joint-venture

ONGC TERI Biotech Limited

Company of ONGC in association with The Energy Research Institute (TERI), with shareholding of 49.98%  &  re  of  48.02%, respectively. Through the efforts of joint search of ONGC & TERI over the years, OTBL is fering below mentioned technologies and providing  various Biotechnical Solutions to Oil and Gas Industry, both in India and abroad:

OilzapperTechnology(Bioremediation)- used to eliminate & tackle Oil Spills, Oily Sludge, and hazardous hydro carbon waste;

Paraffin Degrading Bacteria (PDB)- used to prevent Paraffin Deposition in Oil well Tubing; Wax Deposition Prevention (WDP)- used to prevent Paraffin Deposition in surface and sub-surface flow lines;

Microbial Enhanced Oil Recovery (MeOR)- used for  Enhanced Oil Recovery by mobilizing crude oil trapped in pores of Oil Reservoirs. During 2014-15 the turnover of OTBL was Rs.180.0 Million with Profit after Tax of Rs. 45.1 Million as against turnover of Rs.141.0 Million and Profit after Tax of Rs. 44.8 Million in the previous year.

viii. Petronet LNG Limited (PLL)

ONGC has 12.5 per cent equity stake in PLL, identical to stakes held by other Oil PSU co-promoters viz., IOCL, GAIL and  BPCL. Dahej LNG terminal of PLL having a capacity of 10 MMTPA is currently meeting nearly 20 per cent of the total gas demand of the country. Dahej LNG Terminal is being further expanded from 10 MMTPA to 15 MMTPA. The construction activities continue as planned and the project is expected to be completed by end 2016.

A new LNG terminal of capacity 5 MMTPA has been set up at Kochi and has already been dedicated to the Nation.

The Company is also planning to set up an LNG terminal of capacity 5 MMTPA at Gangavaram, Andhra Pradesh. The turnover of PLL during 2014-15 is Rs.395,010 million and net profit is Rs.8,825 million.

ix. Pawan Hans Limited (PHL)

_ ONGC has 49 per cent equity  stake in PHL (previously known as Pawan Hans Helicopters

Pawan Hans Limited

[A Government of India Enterprise)

Limited). Balance 51 per cent equity is held by the Government of India. PHL is one of Asia's largest helicopter operators having a well-balanced operational fleet of 46 helicopters. It provides helicopter support for ONGC's offshore operations. PHL was successful in providing all the 12 Dauphin N and N3 helicopters fully compliant with AS-4 as per the new contract with ONGC.

8. Other New Projects/ Business initiatives C2-C3-C4 Extraction Plant

• Your company has set up a C2, C3 and C4 Extraction Plant at Dahej having a capacity to process 5.0 MMTPA Rich Liquefied Natural Gas (LNG) from M/s Petronet LNG Limited (PLL) as feed stock, for extraction of C2, C3 & C4 products.

• The plant will be commissioned shortly.

• These extracted C2, C3 and C4 products would be feed stock for ONGCs promoted Joint Venture OPaL in the same SEZ at Dahej. They would form 40 % feed stock for upcoming OPaL Project.

• However till the starting operations and stabilization of OPaL, ONGC shall be producing LPG by blending C3 & C4 in the requisite ratio and would be sold to Oil Marketing Companies.

9. Alliances & Partnerships for Business Growth

a. MoU between ONGC, BPCL, Mitsui and NMPT

ONGC along its consortium partners BPCL and Japanese conglomerate Mitsui signed a MoU with the New Mangalore Port trust (NMPT) on 18t h March, 2013. The MoU documents Port's No-Objection to carry out feasibility studies and intention to extend all cooperation to the consortium in this regard. The consortium has carried out the pre-feasibility study of the project and found that terminal is technically feasible and the same had been presented to NMPT. Based on the report, NMPT has conveyed its no objection to the consortium, for carrying out detailed feasibility studies for the identified locations, subject to adherence to navigational safety requirements. Commercial prefeasibility study is being carried out.

b. MoU for setting up a Special Purpose Vehicle (SPV) for implementing Renewable Energy projects

Your company is likely to be a lead partner in a Joint Venture Company being set up through Special Purpose Vehicle (SPV) for implementing large scale grid-connected solar, wind and other renewable energy (including hybrid) power projects.

An MOU for creating such a JVC was signed on 25th February, 2014 between the Ministry of New & Renewable Energy and Ministry of Petroleum & Natural Gas, Govt of India.

This JVC shall be for grid connected renewable energy and would be led by ONGC as the lead partner with likely 26% equity and other Oil upstream companies like OIL and GAIL along with EIL, IREDA and SECI as partners, equity percentage of each one of them to be decided later. Feasibility study for formation of SPV has been done by EIL and report has been submitted to MoPNG.

10. Information Technology

Considering the need to ensure implementation of cutting edge technology in all areas of operations and to ensure data integrity and security, ONGC has deployed state-of-the-art IT tools and technologies. In a knowledge-driven and technology-intensive industry such as oil & gas E&P, information technology establishes the vital synergy across the company's many locations and varied workforce, essentially serving as its operations' lifeline. Many of the IT achievements of the Company are regarded as benchmarks in the industry in terms of implementation of widespread systems integration and process automation.

Highlights for the year 2014-15

• Consequent to allotment of transponder on GSAT 10 satellite in lieu of INSAT 3E by Department of Space, Govt. of India, Satcom stations were successfully migrated to GSAT 10 satellite using in-house capabilities. On the directive from MoP&NG, a meeting was held with representatives of Indian Space Research Organisation (ISRO) on 05.09.2014 to work-out the use of space applications in E&P sector. ISRO has constituted a five member team which will interact with ONGC team to work-out the use of space applications in E&P sector.

• ISO/IEC 20000: 2011 accreditation for IT Services has been extended to all locations covering entire ONGC, after successful external audit during 8th-12th September, 2014.

• Crisis Management Plan (CMP) for Countering Cyber Attacks and Cyber Terrorism prepared based on CERT-In template and got validated from security expert of CMC and submitted to EC for approval. CMP Incident Management team was constituted at corporate level, which will meet weekly or in case of requirement, to oversee resolution of incidents and discuss mitigation plans for upcoming / known threats & which are communicated by NCIIPC, CERT-in etc.

• Infocom has developed "O Drive" facility for ONGCians. With "O Drive" facility, documents can be stored in a centralized server which can be accessed from anywhere. This effort is alternative option to the usage of USB drives and thus contributes for Information security

• Developed a complete pipeline information system In-house and rolled out at Mehsana& Rajahmundry Assets. The system feature includes facility to view other geographical information such as nearby locations of hospitals, schools fire stations etc., facility to measure distance between any two points, liquid flow direction animation etc. Distinctive colours adopted for different type of lines. The facility can be accessed from anywhere on ONGC Intranet with user login authentication.

• Participated in the CERT-in simulated cyber-attacks based Cyber Security Drill on 23.12.2014, along with 47 other organizations, to assess ONGC preparedness to withstand the possible cyber-attacks. The Cyber Security Drill was completed successfully and Cyber Security Crisis Management Team was able to detect and analyze the incidents and inform CERT-in within given time.

• A portal for Public Grievances was developed in-house to facilitate public to launch their complaints online. This web-based Grievance redressal initiative of ONGC reinforces focus on Digital India project which aims to leverage technology to maintain the Citizen-Government Interface with the highest integrity. Through this portal, citizen/vendor/employee/former-employee can register their grievances relating to any operational wing of ONGC, through an online/single window system. Facility available for monitoring the complaint status by the complainer.

• A portal for JRM (Joint Review Meeting) of Technology and Field services was developed in-house to cater to the complete JRM requirements for conducting the meeting smoothly. JRM members can upload the presentations, tour program details, ATR for previous meetings etc. Notifications/ messages can be generated through this portal and be sent as SMS as well as mail to the members.

11. Health, Safety and Environment(HSE)

Safety, Occupational health and protection of environment in and around its workingareas are prime concerns of ONGC. ONGC has implemented globally recognized QHSE Management System conforming to requirements of QHSE Certifications ISO 9001 ISO 14001 and ISO 18001(OHSAS) at ONGC facilities and certified by reputed certification agencies at all its operational units. During the year 2014-15, 412 Nos. of i n stal l ati on s o f ON G C wer e au d i ted for certification/surveillance audit. Corporate guidelines on incident reporting, investigation and monitoring of recommendations was developed and implemented for maintaining uniformity throughout the organization in line with international practice.

A few highlights of HSE during 2014-15 are:

• Regular QHSE internal audits

• Fire safety measures including regular fire and  earthquake mock drills

• Training on HSE related topics

• Environmental analysis

• PME of employees and Health Awareness programs

• Water and electricity conservation Noise and pollution reduction measures

• Material Safety Data Sheets(MSDS)

• Personal protective Equipment’s(PPE)

• Solid waste management and Developing Ewaste disposal procedure

• Identification and implementation of Environment

Management Programmes (EMP).

• Occupation Health & Safety(OHS) programs as per need of the unit

• Energy conservation awareness through display  and communication

• Accident near miss and Governance Risk  Compliance (GRC) reporting.

• Mines Vocational Training for Petty Contractual  Workers

ONGC is now an Accredited Environment Impact Assessment (EIA) Consultant organization by Ministry of Environment & Forest (MoEF) in Oil and Gas Exploration Development and Production in Offshore/Onshore areas and Petroleum refining industry.

Approval by DSIR

ONGC Institutes have received the renewal of recognition of In-house R&D unit by Department of Scientific and Industrial Research (DSIR) for a period of five years (valid till 31st March, 2018) on 26.03.2013. This will enable ONGC Institutes to continue claiming weighted deduction in Income Tax (200%) against the expenditure towards R&D activities.

Patenting R&D Work

1. One Patent proposal of IRS, Ahmedabad on "Process and composition for cleaning scale deposits of effluent dispatch lines" has been submitted to Centralized Patent Cell, KDMIPE in March, 2015.

2. Patent application has been made by CEELL for  patenting the innovative technique for TOC estimation. The TOC estimated by this technique in first shale gas well matches very well with TOC data obtained through laboratory study on cutting samples. This validates the new technique developed by CEWELL and its applicability in Indian basins.

12. Carbon Management & Sustainability Development

ONGC being one of the premier energy majors of the world and the highest profit earning PSU of India realises its responsibilities in ensuring sustained development through protection of the ecological system. It therefore strives to position itself as a leading organisation in sustainable management and is aiming to achieve sustainable development through a holistic approach to carbon management. ONGC believes that focused Carbon Management efforts are an ideal route  to suspend  cover the elements of our business specific tainable development issues across the iron mental dimensions. A critical area of  environmental sustainability is mitigation of global greenhouse gas from operations. It isan organizational objective for us to progressively reduce our carbon footprint by working towards reduction in both direct and indirect energy consumption.

Sustainable development requires contribution of all the societal players and with increasingly dominant role of modern day corporates; they can contribute significantly towards sustainable development. ONGC has created a small group called "Carbon

Management & Sustainability Group" with a mandate for developing CDM projects, Sustainability reporting, Carbon & ater Management and focussed R&D in the area of low carbon. The following efforts undertaken by ONGC illustrate its commitment to Sustainable Development:

Project status:

1. Clean Development Mechanism (CDM):

ONGC commenced its CDM journey in 2006. Till date, ONGC has registered 12 CDM projects with UNFCCC. 2 new CDM projects validated and 2 already registered projects successfully verified for issuance of CERs.

Validation of New CDM projects

1. Gas Flare Recovery at GGS Chariali, Assam

2. Energy Savings by replacement of MOL pump at Neelam&Heera Asset

Verification & Issuance of Registered CDM projects

1. Gas Flaring Reduction at Uran Plant

2. 51 MW wind power project of ONGC at Surajbari

2. Carbon and Water Foot printing: Carbon Foot printing:

GHG Accounting & GHG mitigation projects

Comprehensive company-wide GHG accounting had been completed for the base year 2010-11 and it is found that ONGC has 8,234,853 and 281,178 tons of CO2 emissions under Scope 1 - Direct Emissions and Scope 2 - Energy Indirect Emissions respectively. Based on the study, 11 focus areas and projects have been identified. It is proposed to undertake the feasibility study of eleven identified GHG mitigation projects.

Global Methane Initiative (GMI):

The Global Methane Initiative (GMI) is an action-oriented initiative from United State Environmental Protection Agency (USEPA) to reduce global fugitive methane emissions to enhance economic growth, promote energy security, improve the environment, and reduce greenhouse gases emission. The Global Methane Initiative facilitates cooperative mitigation activities that result in bringing more gas to markets through Identification, Quantification, and Reduction (IQR) path.

ONGC entered into a MoU with the USEPA in August 2007, to undertake Methane to Market (now GMI) projects in ONGC and over the years since its joining into the program, ONGC has formed a dedicated team and has procured methane emission detection and measurement equipment in order to undertake Fugitive Emission detection and quantification at its operating facilities and has reduced approx. 14 MMSCM over the years. This is equivalent to reductions of over 2 lakhs tCO2e emitting into atmosphere.

Fugitive emission Identification & Quantification (IQ) jobs have been completed as per Performance Contract (PC) targets. Assam Asset, Ankleshwar Asset &Hazira plant were mapped  for fugitive emissions. The reports have been submitted to  respective work centres to take corrective actions.

Water Foot printing:

Sustainable water management:

Every business depends and impacts on water resources. The future of business depends on the sustainability of water resources, which are increasingly under pressure. With freshwater supplies tightening due to overuse and more extreme weather patterns, business is coming under more pressure to measure and cut water use. ONGC is concerned towards the risks and benefits of water management and exploring new techniques to cut consumption. ONGC's Sustainable ater Management policy is based on philosophy of 4 "R" i.e. Reduce, Reuse, Recycle & Replenish. CM&SG is entrusted with the responsibility of steering SM projects across ONGC. CM&SG is working on following projects in this area:

Water footprint study in Ahmedabad Asset and IPSHEM,

Goa:

For the first time an in-house footprint study has been done without engaging any external agency. The project was completed ahead of schedule.

Setting up sea water desalination plant at Uran:

LOA for techno-commercial and environmental feasibility study for proposed 20 MLD sea water desalination plant has been placed on M/s MECON India.

Setting up desalination plants at ONGC work centres  located near coastal areas and at MRPL:

It is proposed to set up desalination plants at ONGC work centres located near coastal areas (Hazira Plant, Ankleshwar Asset, Cauvery Asset-Karaikal, Rajahmundry Asset & Eastern Offshore Asset-Kakinada) and at MRPL as a SM measure, in order to mitigate future sustainability risk due to declining fresh water availability. It is proposed to initially conduct techno-commercial and environmental feasibility study and based on the affirmative outcome of the feasibility report, implementation of setting up desalination plant at the respective work centre may be undertaken.

Rain water Harvesting:

Rain ater Harvesting (RWH) projects are implemented/ being implemented at different work centres of ONGC under the umbrella of Sustainable Water Management. The harvested water is being used for beneficial use like gardening, toilet flushing, etc and also for recharging of ground water aquifers. The RH projects have been taken up at Ahmedabad Asset, Tripura Asset, WOB Vadodara and

IPSHEM Goa.

Sewage Treatment Plant (STP) at Mehsana Asset:

Administrative approval accorded for setting up three STP's (each of capacity 100 KLD) at ONGC Nagar, Mehsana. Finalization of scope of work and tendering process is being taken up by Mehsana Asset.

Produced Water Management at Mehsana Asset:

CM&SG and Mehsana Asset have jointly undertaken produced water management in a holistic manner through a Multi-disciplinary Team (MDT) under sustainable water management umbrella in line with EC decision.

Integrated Watershed/Check dam Management at Mehsana:

ONGC as a responsible corporate wants to expand its activities in sustainable water management beyond its operational boundaries. As a first step Mehsana Asset has been chosen as it is one of the worst affected regions as far as water scarcity is concerned. The project will be a CSR project in association with CM&SG, Mehsana Asset and local concerned authorities. The project is at present exists as a concept and implementation roadmap is being worked out.

SD through focussed R&D and collaborations

ONGC is committed towards reduction of greenhouse gases (GHG) emissions and is actively pursuing various R&D projects towards CO2 capture and sequestration in following ways:

• Sequestration by Algal biomass

• Conversion into useful products

ONGC has signed NDA (Non-Disclosure Agreement)  with following Finnish agencies

• Ripasso Energy, Sweden in the field of Solar CSP-ST technology,

• Chempolis, Finland in the area of 3G bio refinery.

• Cleen, Finland in the area of CCSP, EFEU and BEST  program

• VTT, Finland in the area of water management

At present, however, CM&SG has been pursuing the CCSP programme with CLEEN for the CO2 capture and reformation programme at Hazira plant.

Setting up of 3G Bio-refinery

ONGC is planning to setup a 3G bio-refinery (first of its kind in India) to meet the government mandate of E95 (blending of 5% ethanol to gasoline). To this effect, ONGC had signed NDA &MoU with Chempolis, Finland. This endeavor would create a new business dimension for ONGC. Chempolis had conducted feasibility study for the state of Punjab and the same is under consideration.

Carbon Capture & Sequestration

ONGC has also collaborated with CLEEN, Finland in the area of carbon capture and joined its program named Carbon Capture & Storage Program (CCSP). This program works on sharing knowledge among consortium members and working on the specific goals. Consortium agreement has been signed for ONGC specific work package at Hazira.

Solar power CSP-ST technology

Ripasso Energy has specific and unique expertise in the Concentrated Solar Power (CSP) technology. CSP technology is based on "Stirling Engine technology", a unit  has a typical power output of 30 KW. An inherited modular design ideally suited for volume electricity production with an outstanding conversion efficiency of 32%, provides a number of benefits compared to other solar thermal technologies. CM&SG is in talk with Rippaso Energy for establishing a 3MW pilot solar power project at Gamnewala, Jaisalmer. The project proposal is under consideration.

Pilot project on CO2 sequestration through microalgae  at Hazira plant

Algae have recently received a lot of attention as a new biomass source for the production of renewable energy. Some of the main characteristics which set algae apart from other biomass sources are that algae have a high biomass yield per unit of light and area, can have a high oil or starch content, do not require agricultural land, fresh water is not essential and nutrients can be supplied by wastewater and CO2 by combustion gas.

The pilot project was set up at Hazira plant with an aim to sequester CO2 from vent gas (released during sweeting process of sour gas) with the microalgae and convert into value added products. The results are encouraging which shows that 50% of the CO2 from the SRU vent could be absorbed by the absorption medium in the absorption column at a pressure of 0.5 Bar. The carbonated medium, when transferred to the raceway pond, inoculated with microalgal strain, showed appreciable algal growth (18 g/m2/day), which was harvested. The harvested biomass was tested at BITS Pilani, Goa Campus for the potential of bio-methane generation. It was found that the biomass have good potential of bio-methane generation. (336 Litre/ when fed with 0.5 KgVS /m3/day).

Waste to Fuel project (under Swach Bharat Abhiyan)

MoP&NG has desired to take a project on waste to fuel at Puri, Odisha under Swachh Bharat Abhiyan (SBA) as a part of Corporate Social Responsibility. The project being of specialized nature and involving technical expertise is being steered by CM&SG. Following steps were taken:

• MDT has been formulated to take project forward

• Meeting with Puri administration had been concluded.

• Draft EoI has been put up for approval before floating for identifying technology and prospective bidders.

Disclosing sustainability performance- Sustainability

Reporting

Sustainability reporting, the practice of measuring, disclosing, and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development is being increasingly adopted by organizations. Sustainability Reporting is also believed to lead to improved sustainable development outcomes as it allows organizations to measure, track, and improve their performance on specific issues along the three bottom lines.

Published third party assured A+ sustainability report

for ONGC group of companies including ONGC Videsh and MRPL (GRI-G3.0 complaint with Oil and  supplement and BRR).

Capacity building & knowledge Disseminatio

CM&SG has three tier knowledge dissemination  approaches on carbon, water management and sustainable development.

• Annual Training Program at ONGC Academy

• Programs at Petrotech

• Awareness programs at different work-centers

Total seven awareness programs were conducted by CM&SG at CFB Silchar, RFB Jodhpur, estern Offshore Basin Mumbai, MBA Basin Kolkata, Cauvery Asset Karaikal, OB Vadodara and Cauvery & KG-PG Basin. Total 240 executives participated in the program.

A two day 3rd CM&SG meet was conducted at Goa in January, 2015 for an in depth interaction of CM&SG and SD officers from all ONGC work centers to strategize the pursuit of SD activities in ONGC.

A two day seminar on "Innovation for Sustainability ividend" was conducted by CM&SG in association with etrotech Society at Delhi during November, 2014. The seminar was attended by representatives across Indian oil & gas industries, institutes working in the sustainability and representatives from ONGC.

SD brochure was published during 3rd CM&SG meet. The brochure would be a communication tool to communicate ONGC's triple bottom line performance (economic, social and environmental) and sustainability practices. This brochure highlights the considerable work done in the sustainability space, SD initiatives and performance.  

Film on Sustainability was unveiled during 3rd CM&SG meet by Governor of Goa in the presence of Director-I/c-  CM&SG.This small film highlights the journey of ONGC in  the pursuit of sustainable development.

Stake holder engagement meet

Two stakeholders engagement meets were organized to map and prioritise the key sustainability issues of ONGC. The first meet was meant for internal stakeholders who had prioritized the set of issues which would impact the business sustainability of ONGC. The second meet was for the external stakeholders who had prioritized the issues whose impacts on ONGC would impact their business sustainability. The outcome of the two reports, upon juxtaposition, has generated the key materiality issues of ONGC to work upon. This is the first time such an exercise was undertaken.

Other Initatives:

Corporate Waste Management Policy: Your company

approved Corporate aste Management Policy and the same will be reviewed after every three years.

• Trading policy on monetizing of CER shas been  approved and will be operational shortly.

Carbon Neutrality: ONGC has taken a conscious decision to reduce its carbon footprint as a part of its sustainable development programme. As a first step towards this mission, CM&SG has undertaken a maiden initiative to render the carbon footprints of three major areas neutralised for 2013-14. The areas are :

? Air travel of all ONGC employees including to and fro local surface transportation to airport.

? Consumption of electricity, paper, LPG and fuel for local transportation from IPE Campus, IDT, IEOT, IRS and IPSHEM

? Flaring and electricity consumption of Uran Plant. Carbon neutrality is essentially a concept of having a net zero GHG footprint of an activity. The entire process involved a detailed GHG accounting of the activity and offsetting the footprint. The total footprint of the activities is 1,37, 345 tons of CO2 equivalent and has been offset by retiring an equivalent quantity of carbon credits issued against the registered CDM projects of ONGC.

13. Business Responsibility Report - 2014-15 Securities & Exchange Board of India has introduced Clause 55 to the Listing Agreement with the Stock Exchanges, which states that Listed entities shall submit, as part of their Annual Report, Business Responsibility Report, describing the initiatives taken by them from an environmental, social and governance perspective. Accordingly, the third Business Responsibility Report - 2014-15 has been drawn up and forms part of the Annual Report for 2014-15.

14. Internal Control System

Your Company has a well-established and efficient internal control system and procedure. The Company has a well-defined delegation of financial powers to its various executives through the Book of Delegated Powers (BDP). The Integrated BDP is updated from time-to-time in line with the needs of the organisation as well as to bring further delegation. BDP has been revised during FY 14-15 and the same has been made effective from 01.01.2015. The Company has in-house Internal Audit Department commensurate with its size of operations. Audit observations are periodically reviewed by the Audit &Ethics Committee of the Board and necessary directions are issued whenever required.

15. R&D EFFORTS THROUGH ONGC ENERGY CENTRE  TRUST(OECT)

Your company has taken steps to evaluate various forms of energy to fulfil the country's growing energy needs. Towards this end, your company has established an ONGC Energy Centre Trust (OECT), which is mandated to undertake or assist in programs / projects of fundamental and applied research for improving and developing commercially viable energy mediums and sources beyond hydrocarbons, especially in clean and/or renewable energy options. ONGC Energy Centre (OEC) has been set-up under the aegis of the OEC Trust to work on various clean energy options.

Your company through ONGC Energy Centre has been implementing several Research Projects on new and alternative sources of energy. These Projects are in advanced stages of implementation, in collaboration with various national and international academic, research and industrial organizations. The projects where your company is currently engaged in are:

a) Hydrogen Generation through Thermo-chemical Processes

b) Exploration for Uranium

c) Bioconversion of lignite to Methane

d) Bioconversion of Oil to Methane

e) Kinetic Hydro Power

f) Geothermal Energy

g) Solar Thermal Project

These apart, during 2014-15, ONGC Energy Centrehas also evaluated many new options to expand the research and technology development activities and also to focus on optimum utilization of resources available with ONGC. These efforts have been described in detail in the Annexure Con Energy Conservation.

Further, a Board Level Committee on Research & Development has been constituted. The first meeting of the Committee was held on 27.05.2015 and the terms of reference of the Committee have been approved.

16. Human Resources

Your Company values its Human Resources the most. To keep their morale high, your company extends several welfare benefits to the employees and their families by way of comprehensive medical care, education, housing and social security.

17. Employee Welfare

Your Company continues to extend welfare benefits to the employees and their dependants by way of comprehensive medical care, education, housing, and social security. Your Company continues to align company policies with changing economy and business environment.

Employee Welfare Trusts -

Your Company has established the following major

Trusts for welfare of employees:-

Employees Contributory Provident Fund(ECPF) Trust, manages Provident Fund accounts of employees of your Company.

The Post Retirement Benefit Scheme (PRBS) Trust of  your Company manages the pension fund of employees of your company which has been converted into a Defined Contribution Scheme as per DPE guidelines.In the converted Defined Contribution Scheme, the corpus in the individual employee account shall include employer/ employee contributions and interest thereon. The benefits under the Scheme are dependent on corpus in the individual employee account and accordingly, would be market determined which depends on interest rate, annuity price etc.

The Composite Social Security Scheme(CSSS)

formulated by your company provides an assured ex-gratia payment in the event of unfortunate death or permanent disability of an employee in service. In case of Separation other than Death/Permanent total disability, employees own contribution alongwith interest is refunded.

Gratuity Fund Trust exists for payment of gratuity as

per the provisions of the Gratuity Act. Your Company has a Sahayog Trust for its Sahayog Yojana to provide ex-gratia financial grant for sustenance, medical assistance, treatment, rehabilitation, education, marriage of female dependent and alleviation of any hardship or distress to secure the Welfare of the workforce and their kin, who do not have adequate means of support. The beneficiaries under this scheme includes casual, contingent, daily rated, part time, adhoc, contract appointees, tenure based employees, apprentices and trainees employed by your Company besides regular and past employees. Under the scheme an amount of Rs. 5770 million were disbursed by the Trust during the year.

Extension of Benefits under the Asha Kiran Scheme to retired employees:-

The Asha Kiran Scheme was introduced to meet the emergency needs of the ex-employees retired prior to 01.01.2007, who are passing through distressful situation. The scheme was launched as per DPE guidelines by creating a corpus of 1.5% of PBT. During the year, under this scheme financial assistance of Rs.1780 million was provided to 14698 ex-employee.

Persons with Disabilities

ONGC believes in affording equal opportunities to physically challenged people. As on 31.03.2015, there were 156 permanent employees with disabilities (0.5%) on the rolls of ONGC.

Implementation of Govt. Directives for Priority Section

Your Company complies with the Government directives for Priority Section of the society. The  percentage of Scheduled Castes(SC) and Scheduled

ONGC has entered into an MoU with Super Wave Technology Pvt. Ltd. ( SWTPL) for doing research on alternate technology for hydraulic fracturing. The MoU was signed in the gracious presence of Hon'ble Prime Minister of India Shri Narendra Modi and Hon'ble MoS (I/C), Petroleum & Natural Gas Shri Dharmendra Pradhan.

ONGC has signed a Memorandum of Collaboration with the Indian Institutes of Technology (IITs) to work towards a collective R&D programme for developing indigenous technologies to enhance exploration & exploitation of hydrocarbons and alternate sources of energy in the gracious presence of Hon'ble Minister of Human Resources Smt. Smriti Irani and Hon'ble MoS (I/C), Petroleum & Natural Gas Shri Dharmendra Pradhan.

Tribes (ST) employees were 15 percent and 9 percent respectively as on 31st March, 2015.  Your Company is fully committed for the welfare of SC and ST communities. The following welfare activities are carried out by your Company for their uplif tment in and around its operational areas:-

Annual Component Plan:

Under Annual Component Plan for SC/ST, every year an allocation of Rs.200 million is made. Out of this, Rs. 60 million is distributed amongst all the Work centres of ONGC for taking up activities for welfare of SC/ST Communities in and around the areas of our operations. In addition, Rs. 140 million is managed centrally, and is earmarked for Special projects/ proposals/schemes for the welfare of areas/persons belonging to SC/ST communities. The amount under component plan is utilised for taking up various welfare measures for the welfare and upliftment of the needy people of SC/ST Communities. This fund is especially meant for providing help and support in Education and Training, Community Development and Medical and Health Care.

Scholarship to SC/ST meritorious students

Your Company provides scholarships for meritorious SC & ST students from 100 to 500 for pursuing higher professional courses at different Institutes and Universities across the country in Graduate Engineering, MBBS, PG courses of MBA and Geo-Sciences. The major feature of the scheme is that the scholarships have been equally divided for both Boys and Girl students and the amount of scholarship has been made out to 54,000/- per month per student subject to the conditions of the scheme. The annual budget for the scheme on its total implementation is 576 million per annum.

18. Industrial Relations

During the year your Company maintained harmonious Industrial Relations throughout the Corporation. Mandays loss due to internal industrial action was reported as 'NIL for the year 2014-15.

19. Grievance Management System (GMS) :

Your Company provides an easily accessible machinery to the employees for redressal of their grievances, either through informal channel (open hearing day) or through formal channel. On 26th January, 2015 a web-portal, "Public Grievance Portal", was launched, which will provide redressal of grievances of all stakeholders. This portal is a step further to empower each stakeholder viz. citizen/vendor/employee/former-employee to register their grievances related to any operational wing of ONGC, through a single window on corporate web portal. A structured apparatus has been operationalized to process the grievances within a limited time frame

Public Grievance Management System

All Key Executives of your company have designated a publicized time slot thrice in a week to meet Public Representatives in order to speedily redress their grievances.

20. Implementation under the Right to Information Act

An elaborate mechanism has been set up throughout the organization to deal with requests received under RTI Act, 2005.There are two Central Public Information officers (CPIOs) based at the Registered Office at Delhi and 22 Central Assistant Public Information officers (CAPIOs) have been designated at different work centers across the country to redress the issues under RTI Act 2005.

69 applications were carried forward from the year 2013-14 to 2014-15. 1790 applications were received during the year 2014-15; making a total of 1859. In addition, 66 First appeals were carried forward from the previous year to financial year 2014-15 and 261 were received during the period. All the aforesaid 327 first appeals were disposed off by the appellate authority of ONGC and orders passed by the authority were complied with in stipulated time frame.

21. Implementation of Official Language Policy

Your Company makes concerted effort to spread and promote Official Language. In this effort some of the steps taken during the year were: -

(i) Company has introduced Unicode Hindi software in all our offices. (ii) Hindi workshops are conducted at regular intervals(iii) Hindi seminars and 'Kavi Gosthies' organized in Dehradun and Delhi. (iv) ONGC actively contributed in publishing bilingual Petroleum Terminology, initiated by MoP&NG. (v) Hindi Teaching Scheme of Govt. of India is effectively implemented at all regional work centres.

22. Human Resource Development

33,185 ONGCians (as on 31st March, 2015), which includes 26,656 executives and 9,529 non-executives, dedicated themselves for the excellent performance of your company during the year. The workforce intake strategy pursued by your Company caters to meeting the demands of maintaining a steady flow of talent, in a business which is characterized by high risks and uncertainties, enormous costs, fast changing level of technology, physically challenging work environment, fluctuating product prices and growing competition. Your Company has drawn up a scientific manpower induction plan aligned to the business plans as well factoring the manpower profile of the Company. Your company believes that continuous development of its human resources fosters engagement and drives competitive advantage. Towards that end, during the year, your Company conducted Business Games to hone the business acumen of its executives. Business Game has proved to be very popular initiative and tests the ability of the executives through business quizzes, business simulations and case-study presentations. During the year 2014-15, a total of 144 teams and Rs.76 executives participated in the event. Fun Team Games (FTG) were organized for E0 and staff level employees to inculcate MDT(Multi-disciplinary Team) concept and spirit of camaraderie and belongingness to the organization, which was very well received by the participants. A total of 75 Teams and 300 employees participated in FTG during the year 2014-15. The winners of Business Games and Fun Team Games were felicitated by the CMD on Republic Day Celebrations. Your Company also conducted the Assessment Development Centre (ADC) for 192 DGM level executives (0.81% of executives) and provided them developmental inputs. Your Company has partnered with global HR consulting firms to create a pool of accredited mentors in the organization. These mentors will support organization's effort to hone young minds to successfully respond to the emerging business needs of your Company. As part of this Initiative, in the year 2014-15, 36 mentorship workshops were conducted. Also, 123 mentors have been awarded Basic and Advanced level Accreditations for mentoring.

Training

Your Company attaches utmost importance to the development of its human resource.Your Company has branded the spectrum of its training activities as 'EXPONENT - a comprehensive Programme, which is nurturing the energy leaders of tomorrow. The growth of an ONGCian to an Exponent of energy business is facilitated by ONGC Academy, Regional Training Institutes and other specialised in-house training Institutes and world class training providers in India and abroad.

During the year , a total of 20084 Executives and 4729 non-executives were imparted appropriate training, spanning 176644 executive mandays (Number of executive mandays per executive per year: 7.49) and 16119 non-executive mandays (Number of non­executive mandays per executive per year: 1.69) during 2014-15 at all ork centres. In order to absorb new and emerging technological advancements pertaining to oil and gas exploration and production, 85 programmes, including 26 foreign faculty programmes pertaining to functional disciplines, were organized with the best of faculties from India and abroad during the year To nurture the talent with the objectives to prepare future leaders of the organisation for taking up higher  roles and address key organisational challenges, 338 executives of E7, E6 and E5 level were exposed to Leadership Development Program (LDP), Advanced Management Program (AMP) and Senior Management Program (SMP) respectively, the tailor made Management Programmes with overseas learning component through tie-ups with leading B-schools of the country.

23. Women Empowerment

Women employees constituted over 6 percent of your Company's workforce. During the year, programmes on women empowerment and development, including programmes on gender sensitization were organized. Your Company actively supported and nominated its lady employees for programmes organized by reputed agencies.

Your company scrupulously complies with The Sexual Harassment of Women at orkplace (Prevention, Prohibition and Redressal) Act 2013. Reported cases of Sexual harassment are inquired into by Complaint Committee constituted separately for all the work-centres, for taking disciplinary action against the delinquent employees.

24. Work-Life Balance:-

Your Company continued in its endeavors to ensure work-life balance of its employees. The townships at many work-centers were provided facilities like gymnasiums, music rooms, etc. Outbound programmes with families were also organized at various work-centers. Plays on the importance of 'ork-Life Balance' were staged to create awareness amongst the employees. In addition, cultural programmes involving employees and their families were also conducted. MahilaSamitis and Resident elfare Associations (R As) were involved in the organization of these cultural programs. Your Company has a adventure wing named ONGC Himalayan Association which organizes adventure programmes like mountaineering, trekking, white water rafting, snow skiing, desert Safari, Aero sports etc. which adds towards morale, engagement, team spirit, camaraderie, stress management and spirit to explore unknown among the employees.

25. Sports

Your Company continued its large scale support for development of sports in the country in the form of job offers & scholarships to deserving sportspersons. Sponsorships to various sports associations / federations / sports bodies to organise sports events as well as develop infra-structure were also extended. Your Company extended support in 23 game disciplines to 170 players on regular rolls and 167 players on scholarship. The support has enabled many sportspersons to bring home laurels for the nation and the organisation. Some of the key  achievements during the year are given below:

Your Company was conferred the prestigious Rashtriya  Khel Protsahan Puruskar by Hon'ble President of India  Mr. Pranab Mukherjee at a glittering ceremony in  Rashtrapati Bhavan on the occasion of National Sports  Day on Friday 29th August , 2014. CMD Mr. D.K.Sarraf  received the honour from the President.

Two ONGCians were conferred with the prestigious  "Arjuna Award" for the year 2014; Ms. Heena Sidhu in  Shooting and Mr. V Diju in Badminton. The total number  of National Awardees in the organization stands at 24  (KhelRatna - 1, Padma Shri - 2 & Arjuna - 21)  In Commonwealth Games 2014 held at Glasgow (UK) a  total of 20 ONGC athletes had participated in this 12 day  long mega event and bagged 6 medals (1 Gold, 3 Silver  & 2 Bronze) which is a pretty healthy success rate

In Asian Games 2014 held at Incheon (Korea) a total  of 40 ONGC athletes had participated and bagged  13 medals (4 Gold, 1 Silver & 8 Bronze).

Mr.Sourav Kothari won the Gold Medal at the Asian  Billiards Championship.

Your Company was awarded the prestigious FICCI Certificate of Excellence for the "Award for long time contribution to Indian Football" for the year 2014 [this is the first time in the history that an organisation has been awarded successive FICCI Awards]. Mr. Pankaj Advani of ONGCwon 12th world title in cue sports. In the year 2014-15 he won World Billiards title in time & point format, 6 red world snooker championship and orld team Billiards Championship.

Ms. Rashmi Kumari of ONGC won the singles title of  orld Cup (women) in carom.

26. CORPORATE SOCIAL RESPONSIBILITY (CSR)

Your company is fully engaged in ensuring equitable and sustainable growth of society in and around the area of its operations besides complying with government directives to discharge its social responsibility as a leading Indian corporate. CSR activities are essentially guided by project based approach in line with the provisions of Companies Act, 2013 promulgated by Ministry of Corporate Affairs and Companies (CSR Policy) Rules and the guidelines on CSR& Sustainability issued by Department of Public Enterprise, Government of India. Seeking to herald an inclusive business paradigm, ONGC has CSR interventions that are based on social, environmental, and economic considerations and are well-integrated into the decision-making structures and processes of the organization

Pursuant to enactment  of  Companies Act 2013 and  Companies (CSR Policy) Rules 2014 by Ministry of  Corporate Affairs and Guidelines on CSR and Sustainability by Department of Public Enterprise, the CSR Policy has been approved by the Board of Directors. The same is uploaded on the Company's website. Further, in line with the approval of the Board, ONGC has set up and registered ONGC Foundation under the Societies Registration Act, for carrying out CSR activities. Necessary steps are on hand to recruit manpower for making ONGC Foundation an effective tool for implementation of CSR policy of ONGC. Pursuant to Rule 9 of Companies (Corporate Social Responsibility Policy) Rules, 2014 the Annual Report on CSR activities is annexed herewith as Annexure 'C'.

CSR ACTIVITIES UNDERTAKEN BY ONGC BASED ON ITEMS LISTED IN SCHEDULE VII OF THE COMPANIES  ACT, 2013

o Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and including contribution to Swachch Bharat Kosh set up by Central Government for promotion of sanitation, making available safe drinking water:

o Promoting education, including special education and employment enhancing vocation skills. Especially among children, women, elderly, and the differently abled and livelihood enhancement projects.

o Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups.

o Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water including contribution to clean Ganga fund set up by the central government for rejuvenation of river Ganges.

o Protection of national heritage, alt and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional and handicraftsMeasures for the benefit of armed forces veteranwidows and their dependents.

o Training to promote rural sports, nationally recogs, war nised sports, Paralympics sports and Olympic sports.

o Contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Caste& the Scheduled Tribes, other backward classes, minorities and women.

o Contributions or funds provided to technology incubators located within academic institutions which  are approved by the Central Government.

o Rural development projects.

o Slum area development.

In the last 7 years, your company has contributed  Rs.18,807 Million towards its well-structured and well-  focussedCSR activities.

Out of the CSR Budget of 56,606.12 million, ONGC spent an amount of Rs.4,952.29 million in FY 2014-15. This translates to overall utilization of 74.97% of the  CSR Budget.

Reason for non-utilization of full CSR budget:

• Major Initiatives undertaken were mostly in transition phase so the allocated earmarked budget could not be spent.

• Some of the flagship projects undertaken were of long gestation period with budget spread over 3-5 years thus resulting in lesser utilisation of earmarked budget for the financial year 2014-15.

Some of the landmark CSR initiatives under implementation during the year 2014-15 by your Company include:

(a) Healthcare:

(i) Varisthajana Swasthya Sewa Abhiyan: ONGC and Help-Age India Initiative

To provide basic medical facilities to elderly in terms of medical consultancy, medicine distribution, basic diagnostic test, special health camp and palliative care at their doorstep. A total of 20 Mobile Medicare Units (MMUs) are engaged for taking basic healthcare to the doorsteps of the elderly in nine states, 17 Districts, 35 blocks and 131 Gram Panchayat and 240 villages of India .A total of 11,86,020 beneficiaries were treated for chronic illness such as Hypertension, Diabetes, Osteoarthritis, Dyspepsia& Skin problems etc.

(ii) Community Hospital in Lakhimpur- Kheri, Uttar Pradesh:

The project is unique in terms of using the PPP model in CSR with full Capex of Rs.45 million contribution by ONGC and Opex borne by the Operating Partner. This 26 bedded Community Hospital would cater to Primary and Secondary Health Service Requirements from BPL, Economically Backward Class families. Healthcare services are being provided at 50% less cost than the existing CGHS rates.

(iii) Aids and Appliances to person with disability:
 This is a Pan India CSR project under takea ssociation with Artificial Limbs Manufactu Corporation of India (ALIMCO) and Bhagninring wan  Mahaveer Viklang Sahayata Samiti (BMVSS), Jaipur commonly known as Jaipur Foot benefitting 45,495 Person with Disabilities. Beneficiaries were provided Orthopedic, Hearing and Visually Aids and Appliances. The total financial implication of the project was 5262 million covering 39 ONGC operational areas and 61 Backward Districts in Phase-I of the project which concluded in the financial year  2014-15.

(iv) Government General Hospital (GGH), Kakinada:

ONGC has given financial assistance of 519 million to construct a separate building for blood bank and to equip the hospital with additional equipment for blood bank, general surgery and general medicine departments. This will immensely benefit people of East Godavari District where ONGC has a substantial operational presence

(v) ONGC Mission Ujala:

The project envisages eye screening of 50,000 children in Government Schools in NCR under National Blindness Control Programme of Govt. of India in collaboration with reputed NGO PRAANI. Spectacles to 3,000 children detected with refractive errors along with medicines were provided under this project.

(b) Education & Vocational courses:

i. ONGC-GICEIT Computer Education Program:

Through this project, employment- related free computer education is being imparted to economically underprivileged Youth. The project is implemented in association with Bhartiya Vidhya Bhawan's Gandhi Institute of Computer Education and Information Technology, (GICEIT) at five work centres of ONGC located at Mehsana, Dehradun, Nazira, Karaikal and Rajahmundry. More than 8295 students have received computer training through these centers in the financial year 2014-15.

ii. ONGC-The Akshaya Patra Foundation:

A centralized fully automated mechanized kitchen is being set up to provide mid-day meals to school going children (enrolled in Govt. schools) in the District of Surat. This kitchen was inaugurated by the Hon'ble Chief Minister of Gujarat Smt Anandiben Patel on 15th Feburary, 2015. This kitchen has capacity to feed 2,00,000 children per day. The enrolment as on 31st March, 2015 is 1,90,840.

iii. Community School at Sitapur, Uttar Pradesh:

The project is unique in terms of using the PPP model in CSR with full Capex of 527 million contribution by ONGC and Opex borne by the Operating Partner-Shanti Devi Memorial Charitable Trust.

iv. ONGC Super 30

"ONGC Super 30" is a residential Coaching Programme for IIT aspirants based at Sivasagar Assam. The total cost of the project is 56.70 million. The initiative was conceived to cater to underprivileged and below poverty line students who are unable to get proper coaching to qualify engineering exams due to lack of resources and funds.

(c) Projects for Physically and Mentally challenged

i. ONGC Centre for vocational rehabilitation for the  differently abled:

A financial support of 513 million has been provided to Tamana School of Hope, Vasant Vihar, New Delhi for setting up of Autism Centre and provide vocational training for the mentally challenged young adults and children working for their economic rehabilitation by teaching relevant vocational skills to them.

ii. ONGC -Cheshire Home Project for Physically and  Mentally Challenged:

A project on health rehabilitation and allied services for economically disadvantage children with disabilities living in slums area of Mumbai undertaken with Cheshire Homes (India) Mumbai with financial assistance from ONGC. Children with Disabilities were identified from areas of Hanuman Nagar, Damu Nagar and Shivaji Nagar covering 3 slum communities and provided with rehabilitation treatment and aids with an objective to help them lead a normal life.

(d) Environment Sustainability:

i. Eastern Swamp Deer Conservation Project (Phase II) :

The phase II of the project includes capture of Eastern Swamp Deer from the source i.e Kaziranga National Park and translocate them to Manas National park. This is a research based project to conserve and increase the viable population of Eastern Swamp Deer in their natural habitat at Manas National Park. The total cost of the project is 5 8.9 million.

ii. Harit Moksha: Green Cremation System

This is a unique CSR initiative of ONGC undertaken with MokshdaParyavaranEvam Van SurakshaSamiti (MPEVSS) to reduce wood consumption during traditional cremations through Mokshda Green Cremation Systems (MGCS). The project includes installing 30 units of green cremation system in 8 cities of 7 different states with a budget of 592 million . The project helped in saving approximately 13,700 tonnes of wood & reduced 26,500 tonnes of GHG emissions till date.

(e) Development of Backward Districts:

The sustainable development project is being implemented in Jaisalmer, a backward district in Rajasthan. Project involves setting up of 49 Wind Turbine Generators (WTG) each of capacity of 2.1 MW with total capacity of 102.9 MW in association with M/S Suzlon Energy Ltd. ONGC contribution towards the project is 5 5620 million. 22 nos. of WTG have been installed.

(f) Women Empowerment:

ONGC as a leading organization and among the founder member of Women in Public Sector (IPS) established way back in 1990 under the aegis of SCOPE has always spearheaded women empowerment Initiatives. omen Development Forum (WDF) an internal wing of ONGC women Employees was also formed in line with WIPS to encourage women employee to explore their potential to the fullest.

The basic aims and objectives of WIPS are:

• To promote the growth and development of Women in Public Sector.

• To assist the Public Undertakings in optimising the full potential in omen employees.

• To play a catalytic role in improving the status of  omen in and around PSEs

Women in Public Sector (WIPS) presented ONGC with the Best Enterprise Award for Women Empowerment consecutively for 3 years till 2014. In the year 2015 ONGC was awarded the second prize for the same category.

(g) Other CSR Initiatives:

i) Hortoki Water Supply Scheme: The project aims to

create a sustainable source of safe drinking water to the people of Hortoki Village, Kolasib District, Mizoram. A massive 1.7 Lakhs litre water tank was constructed as part of the project to supply more than 40 lpcd of water till 2043. ONGC has extended support of Rs. 9 million for the project. More than 450 households of Hartoki village are benefited through this project

ii) Rajeev Gandhi International Sports Complex, Dehradun: ONGC in association with Govt. of Uttarakhand is working towards building a Cricket stadium-cum-sports complex with a capacity of 30,000 people extendable to additional seats in future, car parking, a sports academy, a club house or Gymnasium, restaurant and other auxiliary facilities. ONGC has extended financial support of Rs.500 million towards the project. The project is expected to be completed in two years.

iii) Dashrath Stadium at Agartala: The project aims to create an Indoor sports complex in association with DDO Directorate of Youth Affairs. ONGC has extended support of Rs. 243 million for the project.

iv) IIIT, Agartala: ONGC has extended support of Rs.30 million for setting up a new IIIT Campus in Agartala.

In addition to above major CSR initiatives undertaken in 2014-15, ONGC has partnered with many NGO and other non- profit organization in implementing several other CSR initiative across our country. All work centres of ONGC have designated CSR office to take care of the local needs.

As a testimony to our CSR efforts, your company has won many laurels such as:

1. Golden Peacock Award 2014 for CSR during 9th  International Conference on Corporate Social Responsibility-2014

2. ABP News Global CSR Excellence & Leadership Award for Best Overall CSR practices

3. 4th Annual Greentech CSR Platinum Award 2014  in petroleum exploration sector

4. Madan Mohan Malviya Golden Award for outstanding contribution in the field of Education

5. P L Roy CSR Award on 'International Day of Olde Persons' for support to the elderly through its CSR initiative 'Varishthajana Swasthya Sewa Abhiyan'

27. ACCOLADES

Consistent with the trend in preceding years, your Company, its various operating units and its senior management have been recipients of various awards and recognitions. Details of such accolades are placed at Annexure - 'D'.

28. DIRECTORS' RESPONSIBILITY STATEMENT Pursuant to the requirement under Section 134(3)(c) of the Companies Act, 2013, with respect to Directors' Responsibility Statement, it is hereby confirmed that:

(i) In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

(ii) The Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2015 and of the profit of the Company for the year ended on that date;

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

(iv) The Directors have prepared the annual accounts of the Company on a 'going concern' basis;

(v) The Directors have laid down internal financial controls which are being followed by the company and that such internal financial controls are adequate and are operating effectively; and

(vi) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating.

29. CORPORATE GOVERNANCE

Your Company has taken structured initiatives towards Corporate Governance and its practices are valued by various stakeholders. The practices emanate from the need to position multi-layered checks and balances at various levels to ensure transparency of its operations  in the decision making process. In terms of Clause 49 of the Listing Agreement, a report on Corporate Governance for the year ended March 31st March, 2015, supported by a certificate from the Company's Statutory Auditors confirming compliance of conditions, forms part of this Report.

ONGC has implemented the mandatory Guidelines of Department of Public Enterprises (DPE), Government of India, on Corporate Governance to the maximum ex tent possible.

In terms of section 204(1) of the Companies Act, 2013, the Company has engaged M/s P P Agrawal & Co., Company Secretaries in whole-time practice as Secretarial Auditors for conducting Secretarial Compliance Audit for the financial year ended 31st March, 2015. Their report forms part of this Annual Report.

With regard to the observations of Secretarial Auditors as contained in their report, it is submitted that ONGC being a Government company, all directors on the Board of the company are appointed by Government of India. The matter relating to appointment of requisite numbers of Independent Directors has already been taken up with the Government.

The Company has formulated and uploaded the following policies/codes on its website in line with the Companies Act, 2013 and Listing Agreement:

a. Code of Conduct for Board Members and Senior Management Personnel

b. Related Party Transactions Policy & Procedures, 2014

(c) Material Subsidiary Policy

(d) The Code of Internal Procedures and Conduct for prohibition of insider trading in dealing with the securities of ONGC   line with global practices, your Company has made ailable all information, required by investors, on the mpany's corporate website www.ongcindia.com

Apart from the mandatory measures required to be implemented as a part of Corporate Governance, ONGC has gone the extra mile in this regard for the benefit of its stakeholders:

i. Whistle Blower Policy / Vigil Mechanism: A total of 35 Protected Disclosures till 31.03.2015 have been processed through the histle Blower mechanism of ONGC which was implemented from December 01, 2009. The policy ensures that a genuine Whistle Blower is granted due protection from any victimization. The Policy is applicable to all employees of the Company and has been uploaded on the intranet of the Company.

In addition, the Company has a full-fledged Vigilance Department, which is headed by Chief Vigilance Officer who holds the rank of a Functional Director of the Company. ith a view to maintain his independence, the CVO reports to the Chief Vigilance Commissioner of the Government of India.

ii. Enterprise-wide Risk Management (ERM) framework:

In line with the requirements of Clause 49 VI of the Listing Agreement, your Company has developed and rolled out a comprehensive Enterprise-wide Risk Management (ERM) Policy throughout the organization. The Audit & Ethics Committee periodically reviews the risk assessment and minimization process in ONGC.

The Risk Management policy of your Company is as  follows:

"ONGC shall identify the possible risks associated with its business and commits itself to put in place a Risk Management Framework to address the risk  involved on an ongoing basis to ensure achievement of the business objective without any interruptions.

ONGC shall optimize the risks involved by  managing their exposure and bringing them in line  with the acceptable risk appetite of the Company"

The Board of Directors have constituted a Board Level Risk Management Committee in terms of Clause 49 of the Listing Agreement. The first meeting of the Committee was held on 19.03.2015 wherein the risk appetite and present risk profile, development of risk register to comply with clause 49 of the listing agreement and Companies Act, 2013, Risk Management Policy in ONGC, Risk Reporting structure, Risk Management / mitigation process, Governance Risk Management & Compliance (GRC) module roll-out through SAP, Review of risk register and identification of new & emerging risks, categorization and quantification of risks and role of internal audit in ERM etc were reviewed.

iii. Meeting of Independent Directors: No Meeting of Independent Directors was held during 2014-15.

iv. Certificate of Independence by Independent Directors: The Independent Directors have submitted declaration that they meet the criteria of Independence as per section 149(6) of the Companies Act, 2013.

30. STATUTORY DISCLOSURES

Your Directors have made necessary disclosures, as required under various provisions of the Act and Clause 49 of the Listing Agreement.

Extract of Annual Return

As per requirement of section 92(3) of the Companies Act, 2013, the extract of the annual return in form MGT-9 is placed at Annexure-E.

Particulars of Employees

ONGC being a Government Company, the provisions of section 197(12) of the Companies Act, 2013 and  relevant Rules shall not apply in view of the Gazette notification dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs. The terms and conditions of the appointment of Functional Directors is decided by the Government of India. The salary and terms and conditions of the appointment of Chief Financial Officer (CFO) and Company Secretary, KMPs of ONGC, is in line with the parameters prescribed by the Government of India. Performance Related Pay of Functional Directors and other employees including CFO & Company Secretary (KMPs) is in line with the guidelines of Department of Public Enterprises, Government of India.

31. ENERGY CONSERVATION

The information required under Section 134(m)of the Companies Act, 2013, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, is annexed as Annexure - 'F'.

32. AUDIT AND ETHICS COMMITTEE

In compliance with section 177(8) of the Companies Act, 2013, the details regarding Audit & Ethics Committee is provided under Corporate Governance report which forms part of this Annual Report. There has been no instance where the recommendations of the Audit & Ethics Committee have not been accepted by the Board of Directors.

33. AUDITORS

The Statutory Auditors of your Company are appointed by the Comptroller & Auditor General of India (C&AG). M/s Mehra Goel & Co, New Delhi, M/s G D Apte & Co, Mumbai, M/s Lodha and Co, Kolkata, M/s Varma & Varma, Chennai and M/s Khandelwal Jain and Co, Mumbai Chartered Accountants were appointed as joint Statutory Auditors for the financial year 2014-15. The Statutory Auditors have been paid a remuneration of 525.01 million (previous year 522.92 million) towards audit fee and certification of Corporate Governance Report.The above fees are exclusive of applicable service tax and reimbursement of reasonable travelling and out of pocket expenses actually incurred.

34. Auditors' Report on the Accounts

The Comments of Comptroller & Auditor General of India (C&AG) form part of this Report and are attached as per Annexure-'G'. There is no qualification in the Auditors Report and there are no supplementary comments by C&AG under section 143(6)(b) of the Companies Act, 2013 on the Financial Statements of the Company. Notes to the Accounts referred to in the Auditors Report are self-explanatory and therefore do not call for any further comments. You would be pleased to know that your Company has received Nil comments from C&AG and Statutory Auditors for the year 2014-15. This is the ninth year in a row that the organization has received Nil comments.

35. COST AUDIT

Six firms of Cost Accountants were appointed as Cost Auditors for auditing the cost accounts of your Company for the year ended 31st March, 2015 by the Board of Directors. The Cost Audit Report for the year 2013-2014 has been filed under XBRL mode on 25.09.2014 which was well within the due date of filing (i.e.30.09.2014).

36. DIRECTORS

POLICY ON DIRECTORS' APPOINTMENT ETC.

ONGC being a Government Company, the provisions of section 134(3)(e) of the Companies Act, 2013 shall not apply in view of the Gazette notification dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs.

PERFORMANCE EVALUATION ONGC being a Government Company, the provisions of section 134(3)(p) of the Companies Act, 2013 shall not apply in view of the Gazette notification dated 05.06.15 issued by Government of India, Ministry of Corporate Affairs.

APPOINTMENTS / CESSATION ETC

Since the 21st Annual General Meeting held on  19.09.2014, Shri P Uma Shankar, Shri S. Ravi and Shri R.K. Singh (Independent Directors) vacated their office on 19.09.2014 (FN) in terms of Section 161 of the Companies Act, 2013. The tenure of Prof. Samir Kumar Barua and Shri Om Prakash Bhatt (Independent Directors) concluded on 13.12.2014.

On being appointed as Managing Director of ONGC Videsh Ltd, Shri N K Verma relinquished the charge of Director (Exploration), ONGC on 27.08.2014. Shri U.P Singh, Additional Secretary (Exploration), Ministry of Petroleum & Natural Gas, joined the Board as Government nominee Director on 16.10.2014 in place of Shri Aramane Giridhar. Shri A.K. Diwivedi took over as Director (Exploration) on 16.03.2015.Shri A. K. Banerjee, relinquished the charge of the post of Director (Finance) on attaining the age of retirement on 30.04.2015. Ms. Atreyee Das was appointed as Government Nominee Director on 14.05.2015.  

On being appointed as Secretary, Department of School Education and Literacy, Dr. S.C. Khuntia, Special Secratar y, MoP&NG and Government nominee resigned from the Directorship of ONGC on 26.06.2015. Shri Ashok Varma, Director (Onshore) relinquished the charge of Director (Onshore) on 31.07.2015 on attaining the age of superannuation and Shri V P Mahawar, who has been appointed as Director

Onshore) by Ministry of Petroleum & Natural Gas, Government of India, took over charge on 01.08.2015. The Board places on record its deep appreciation for the excellent contributions made by Shri IRs. Uma Shankar, Shri S. Ravi, Shri R.K. Singh, Prof. Samir Kumar Barua, Shri Om Prakash Bhatt, Shri N. K. Verma, Shri Aramane Giridhar, Shri A. K. Banerjee, Dr. S.C. Khuntia and Shri Ashok Varma during their tenure.

The strength of the Board of Directors of ONGC as on 1st August, 2015 is 9, comprising 6 Executive Directors (Functional Directors including CMD) and 3 Non­Executive Directors i.e. two Government nominees and one Independent Director. Ministry of Petroleum & Natural Gas has been requested to appoint requisite number of independent Directors to comply with the provisions of Companies Act, 2013 and Listing Agreement. A total of 13 meetings of the Board of Directors of ONGC were held during the financial year  2014-15.

Details of other Key Managerial Personnel as per Rule 8 (5) (iii) of The Companies (Accounts) Rules, 2014:-

Shri A. K. Srinivasan was appointed as Chief Financial Officer w.e.f.06.05.2015 and as Key Managerial Personnel w.e.f. 28.05.2015.

Shri N. K. Sinha, Company Secretary superannuated on 30.06.2015 on attaining the age of retirement. Shri V. N. Murthy took over as Company Secretary on 01.07.2015.

37. Acknowledgement

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

Your Directors thank all share-owners, business partners and members of the ONGC Family for their faith, trust and confidence reposed in ONGC. Your Directors wish to place on record their sincere appreciation for the unstinting efforts and dedicated contributions put in by the ONGCians at all levels, to ensure that the Company continues to grow and excel.

For and on behalf of the Board of Directors

Dinesh Kumar Sarraf)

Chairman & Managing Director

Place : New Delhi

Date : 1st August, 2015