Professional Documents
Culture Documents
BDP 2014
BDP 2014
Ltd.
The Board of Directors of ONGC, in order to facilitate the business activities of the organization, to foster more
efficient use of resources and to strengthen the position of ONGC as Indias leading energy company, has
brought into force this revised Book of Delegated Powers (BDP) 2014. Through this book, the Board of
Directors has empowered the company executives with authority so as to achieve the vision of being a global
leader in the integrated energy business.
b) Delegation of authority and defining principles of segregation of duties through this BDP is aimed
at two objectives: (i) to define the limitation to decision making authority granted to
individuals/committees, (ii) to set out accountability and responsibility for participants in the activity
by defining decision making authority for the activity.
c) This BDP has been developed using a framework that defines the limitation of authority to an
individual/committee based on risks associated with the activity. For each activity, risk has been
evaluated using different risk dimensions such as financial, human capital, operational, legal &
regulatory, reputational and social.
b) The levels mentioned in the below framework are drawn from ONGCs CRC structure. In case the
stated CRC level is not available in the work center,
(i) Power of decide authority shall be exercised by next higher authority (CRC level)
(ii) Role of Input, Agree and Recommend authority in the decision making process shall be
rendered by the senior most authority (E level which is below the requisite CRC level
authority for respective roles) in the respective units/department/functional area.
c) "Decide" authority is accountable for a decision and its successful execution. Responsibility to
undertake elements of decision making activity and elements of executing the decision are shared
by the Decide authority with individuals below that authority both in the line function and support
functions.
d) For decision making, the roles performed by levels below the Decide authority are segregated
in the manner depicted below using iRAID framework. For executing the decision, the roles will
be segregated using iRAID framework too and they will be set-out in manuals of respective
departments.
Input (i) One or more individual(s) Individual(s) on the back of their experience or with
- To be assigned/ assistance from external agencies/consultants will
nominated/ approached a. Collate relevant and critical insight or information
by the Recommending b. Including cost estimates and
authority; c. Provide this information within the assigned
- from different departments timeline to the Recommending authority.
(viz. Technical, Finance,
Legal, MM, Commercial,
HR etc.) and
competencies;
- each of them being the
senior most in the
respective departments
amongst levels below
Recommending
authority.
Recommend (R) One individual i. Develops a proposal including business case,
- From indenting/user/ evaluation of various alternatives, building of overall
Each proposal will contain authorities which provide inputs, recommend, agree/concur, decide and
which are informed. For undertaking the roles mentioned above, indicative checklist has been provided
in the above table while detailed procedures and checklists are provided to the individuals through
process manuals or circulars and polices. These documents shall be reviewed and amended if required
based on ongoing feedbacks received.
Technical
Material Legal/HR/
Department Finance
Mgmt. Other
(Provide and Department
Department Departments
Collate inputs)
Decision If No,then.
Create proposal revision required
Independent
based on inputs Validation
received
Agree (A)
Decision If Yes
Decision informed
Inform (I)
based on
importance of
activities
III: Schemes
a) Schemes, in the context of this BDP, are part of integrated business with stand-alone identity, and
are executable as a distinct activity. Usually, Schemes seek to expend money and as a result (i)
have quantifiable outcomes, and (ii) contribute to the physical targets in terms of revenue and
production. In the exceptional cases, there will be Schemes which incur expenditure but either the
outcomes are not quantifiable or they do not contribute to physical target or both.
b) The Schemes shall be developed by consolidating the itemized planned activities at work centers
within the Assets, Basins, Plants, Services and Institutes. Schemes would include activities like
Capital Projects, Field Development Plan, Work Programs, Maintenance, CSR, New Business
Entry, etc. or a combination of these activities.
d) The Recommender shall decide on the size of the Scheme and right sizing is achieved by
ensuring:
(i) that the estimation of expenditure and outcome targets are very detailed because they go
into formulation of budgets; and
(ii) that the scheme has justified business case on a stand-alone basis.
e) The economic viability of a successful Scheme is based on proper business case justification as
prepared by Recommend authority (an individual part of technical/business department). Once
the business case or feasibility report of the scheme is prepared, the Agree/Concur authority
(authorities) provides Concurrence from the perspective of their functional areas. The authorities
are domain expert from various support functions (viz. Finance, Legal, MM, Commercial etc.).
f) The Decide authority shall review and shall accord approval or reject the proposal of
Recommending authority after confirming the merit of the proposal, technical and financially
viability of the scheme or other such criteria. In a nutshell, approval by Decide authority of a
scheme encompasses business case approval (administrative approval), financial concurrence,
and financial sanction.
g) Upon receipt of approved schemes, at a particular time in a year, estimated Expenditure and
Outcome Targets will get consolidated in the form of budgets. These budgets are put up to
competent authority for approval. Firstly, financial sanction is obtained for the proposed schemes
and then Expenditure Sanction shall be accorded through budgeting process.
h) In the case of NELP PSC Assets, the expenditure sanction will be considered interim at this stage.
Authorization for Expenditures (AFE) is a final authorization of expenditure under a PSC usually
for a year. Expenditure estimates prepared through Schemes consolidated at the PSC level, will
provide proposal for budget approval which is segregated on annual basis.
i) Budgets approved for the next year will be called Budgeted Expenditures. Expenditure estimated
and approved for the next year shall be subjected to review in the next year and hence such
revised estimate shall be termed as Revised Budget Expenditure. This AFE once approved by
operating committee and management committee will be considered as the final Expenditure
Sanction.
j) In case of nomination blocks or Pre-NELP blocks, budgets approvals are considered as the final
expenditure sanction.
k) In case where approval is followed by procurement activity, it will be taken up for the individual
items (material, services, etc.) or group of items as necessary, including by way of clubbing of
similar items in more than one Scheme.
(i) Indenting department shall reassess the need for the items and ensure that the
parameters on which items were approved under the scheme/budget, have not under
gone change and justification exists for procuring such items.
l) The reporting for the schemes is done to monitor for controlling purposes.
n) Any change in physical and financial parameters in an approved Scheme (within sanctioned
expenditure) shall require approval of the sanctioning authority beyond the contingencies built in
the schemes.
b) The individual officers while exercising these powers shall exercise the same vigilance in respect
of expenditure from the organization funds, as a person of ordinary prudence would exercise in
respect of expenditure of his own money.
c) The expenditure should prima-facie be not more than the demand of the occasion.
d) No authority should exercise his powers of sanctioning expenditure which will be directly or
indirectly to his own advantage.
e) The funds are available in approved budget for the relevant period. However if funds are not
available and delay in execution of a work/expenditure is detrimental to the interest of the
organization, then the same can be re-appropriated as per the prescribed procedure and
guidelines and informed to higher authority.
f) Financial concurrence is required unless specified otherwise for exercising financial powers.
g) Decide or Sanctioning Authority shall have the powers to overrule the views of Agree or
Concurring Authority.
h) Monitoring of annual limits shall be done in respect of the items where delegation is made on per
annum basis.
i) All financial expenditures incurred shall be aligned with the vision and mission of the organization.
The funds of the organization as mentioned in BDP shall not be utilized for the benefit of a
particular person or community or section of a community unless the expenditure is in pursuance
of a recognized policy or as per the business requirement.
j) Wherever powers for approval for deposit of money/advance payments have been delegated in
BDP, the same also includes powers for approval for submission of Bank Guarantees/Letters of
Credit.
k) In case of excess of expenditure over sanctioned value, sanction need to be obtained from the
same authority who had accorded original sanction. In case revised total expenditure falls within
the sanctioning powers of higher authority, sanction for excess expenditure need to be obtained
from such higher authority. This rule applies in all the cases except specified otherwise.
l) The process of administrative approval needs to be exercised wherever the proposals are non-
operational in nature and are not covered by any policy guidelines. Such proposals would require
prior approval before initiating financial sanction process.
b) The external factors include oil prices, global upstream capital spending, inflation index, growth
rate, production rates, cost of oil field services and equipment, new market avenues etc.
c) The internal factors include internal expenses, operating costs, maturing fields requiring frequent
& costly interventions, land acquisition rates and its appreciation, maintenance and repair
expenses etc.
c) In normal cases, powers defined in BDP are not to be sub delegated. However, in case an officer
holding CRC position, is absent on leave or tour, he may authorize in writing his/her
next/subordinate senior most officer available to exercise his/her powers during such absence,
signing as for on leave/tour. For other officers, the respective Section Incharges shall have
power to delegate authority in such cases. However, disciplinary powers cannot be exercised by
such subordinate officer during the absence of the officer who has delegated such powers.
b) Depending upon the situational exigencies, CMD may exercise full powers of the Board in
between two Board meetings where the decision cannot be kept pending for the next Board
Meeting. However, such decisions will be reported to the Board at its next meeting.
c) The powers mentioned will be exercised in case of emergencies like flood, fire, civil disturbances,
war, cyclones, blowout and other operational break down.
d) Detailed justification for resorting to emergency / operational break down should be recorded at
the time of processing the proposal for approval.
ONGC Shareholders
CMD
Functional Directors
Virtual Corporate
CRC Levels
L-I, L-II, L-III, L-IV
Assets, Basins, Plants, Institutes, Services and Others
Executive Committee (EC) is one of the forums of ONGCs top Management and the role of EC is related to
major decisions at corporate level and its related issues. It consists of CMD as Chairman of the Committee and
full time Directors as members. It essentially provides in-principle approval for the following areas:
a) All policy related issues across organization (only those issues related to policies not resolved in
local VCs).
c) Issues desired by the Functional Directors to discuss in EC (prior filtering of issues by EC cell).
Executive Procurement Committee (EPC) consists of CMD as Chairman and full time Directors as members of
the Committee. It mainly deals with the following areas:
a) Any major modification in the Materials Management policy.
e) Any other issues at work center level which do not infringe with corporate policies.
Empowering and strengthening the role of VC shall filter issues coming up to Executive Committee (EC) forum
for discussion.
(i) Individuals taking decisions are accountable for the decisions taken, project delivery,
results and performance;
(ii) The decision making authoritys team with people from own and other departments, as
also concurring authorities (Finance, HR, MM, Commercial), Services, Institutes, etc. are
responsible (not accountable) for inputs/assessment/recommendations/support for
decision making including deliveries of services, products/solution in their respective
areas of responsibility/functions.
c) The performance of decision makers (those accountable) and of those who share responsibility to
execute the decision will be reviewed. Therefore, each and every member shall establish clear
direction for executing decisions, clearly own up responsibilities, adhere to delivery milestones,
follow through the actions needed, deliver on promises and accept full responsibility for whatever
happens within his/her area.
d) Decideing authority shall measure the execution or delivery of the project/activity against
strategic objectives or physical targets by using key performance indicators (KPIs) and
undertaking inter-alia the following:
e) Importantly, the person exercising powers and those sharing responsibilities of executing
decisions made by the authority shall be guided by integrity and ethical propriety.
X: Internal Controls
a) Internal control is a process, affected by ONGCs board of directors & management, designed to
provide reasonable assurance regarding the achievement of the objectives relating to operations,
reporting, and compliance. The internal control process is segregated in five layers-control
environment, risk assessment, control activities, information & communication and monitoring.
b) The governance framework of ONGC, Board sub-committees, delegation of authority through BDP
2014 and CRC structure form the first layer of control environment. In addition, the control
environment comprises of the integrity and ethical values of the organization; the process for
attracting, developing, and retaining competent individuals; and the rigor around performance
measures, incentives, and rewards to drive accountability for performance.
c) Risk is defined as the possibility that an event will occur and adversely affect the achievement of
ONGC's objectives. The process of assessing risk is a dynamic and iterative process which
relates to the achievement of objectives. Risk assessment in BDP 2014 is captured through the
Risk Matrix which defines the authority to be delegated at each level based on the risk associated
with the activity or event.
d) Control activities are policies and procedures that help to ensure that management directives are
carried out such as integrated MM manual. Segregation of duties is ingrained in BDP 2014
through the use of iRAID framework in the decision making process.
e) Information & communication channel is maintained through extant channels such as circulars,
letters and SAP system. In addition, the introduction of "Inform" authority in the decision making
process has further strengthened the internal controls system.
f) Monitoring is done through internal audit team. Ongoing evaluation in the form of controlled self-
assessments (or self-audits) are to be carried out by each department as per the process laid out
by Internal Audit at regular intervals.
b) All cases related to nomination and emergencies shall be reported as per the prevailing
regulations of the Corporation and other cases are reported as specified in the BDP. The
information shall contain all details and justifications.
c) Capital schemes like Development schemes shall also be reported to higher authority.
e) All other cases where information is required to be provided to higher authority as per BDP
clauses:
(i) Where report is to be submitted on as and when basis or on monthly basis, report to be
submitted to concerned authority latest by 7th of the following month.
b) Extents of Powers mentioned in the BDP are in Indian Rupees. In order to ascertain the Decide
Authority, cases involving Foreign Currency are to be converted into equivalent Indian Rupees
based on BCS rate maintained in SAP or obtained from SBI.
Part B Strategy
1.4 Enter into partnerships, mergers & acquisitions and participating interest (including farm in and
farm out)
Full powers Board
1.5 Create new internal business units and their organizational structure
Full Powers Executive Committee
1.6 Opening & closing of offices in India & abroad and create new activity centers
Full Powers Executive Committee
2.2 Expenditure sanction under CSR Policy (including projects funded through ONGC CSR foundation)
Through CSR Sub-
Full Powers Board
Committee of the board
Up to 1 crore in each case EC
Through Chief CSR
Up to 50 lakh in each case Director (HR) Inform Executive Committee
on quarterly basis
Through Chief CSR
For proposals related to work
centers/areas within their
Up to 25 lakh in each case (Annual limit of 1
Functional Director administrative control
crore)
Inform Executive Committee
on quarterly basis through
Chief CSR
With recommendations from
CSR Committee at corporate
level
Up to 20 lakh in each case Chief CSR Inform Functional Director on
decisions taken and delivery
performance on monthly
basis
With recommendation of VC
Inform Corporate CSR Group
Up to 10 lakh in each case L-I on decisions taken and
delivery performance on
monthly basis
2.4 Execute, sign contracts/agreements for CSR activities which have been approved by the Competent
Chapter 3: Budgeting
Annual Budgets
3.1 Approval for annual budget
Full Powers Board
3.3 Re-appropriation of funds from one Commitment item (CI) to another for budgeted Revenue head
ii. Re-appropriation allowed from one Revenue CI to another Revenue CI
Item for which re-
appropriation is required
should fall within his/her
Full Powers Functional Director functional area and
sanctioning power
Reason for re-appropriation
shall be documented
3.4 Re-appropriation of funds from one Commitment item to another for budgeted Stores, Spares,
Contractual and Other Charges heads within the approved budget of their respective units subject to
such expenditure falling within his/her expenditure sanctioning powers
Only where both fund centers
Full Powers - From one Fund Center to another are under his/her control
and/or from one budget head to another L-I Reason for such re-
(within sanctioning powers of L-I) appropriation shall be
documented
Full Powers - Within Fund center and within Budget
Only for the sections under
head L-II
his/her control
(within sanctioning powers of L-II)
3.5 Re-appropriation of funds from one Commitment item (CI) to another for budgeted Manpower head
iii. Re-appropriation from one Manpower CI to another Manpower CI only
Only where both fund centers
are under his/her control
Full Powers - From one Fund Center to another L-I
Reason for re-appropriation
shall be documented
Only for the sections under
his/her control
Full Powers - Within Fund center L-II
Reason for re-appropriation
shall be documented
4.2 Entering in to arrangement with Banks & Financial Institutions for availing line of Credit, enhancing
Credit Limits and limits of Bank Guarantees/Letters of Credit
Inform to the Board by Treasury Management Group:
i. Status of actual borrowings outstanding as on 31st March each year
ii. Maximum amount of actual borrowing during the year
st
iii. Limits utilized for submission of Bank Guarantees / Letter of Credits as on 31 March each year
iv. Maximum limit utilized for submission of bank guarantees/Letter of credits during the year
As per prevailing Govt. and
RBI guidelines subject to
Up to 15,000 crore in any currency (outstanding CMD and Director
each Bank Guarantee /Letter
at any time) (Finance) jointly
of Credit not exceeding
1000 crore
4.4 Approval for opening/closing of Bank Accounts and their operation (including nomination of
principal officer/regulator for facilities such as tele/mobile/e-banking)
Full Powers Director (Finance)
4.5 Approval for appointment of authorized signatories for operation of bank accounts
Full Powers Principal Officer
Chapter 5: Payments
Payment of Advance
5.1 Payment of advance against supply order/work order to vendors/ contractors
a) To include interest bearing advance payment Generally applicable to LSTK
clause in Tender as per prevailing rules of Functional Director contracts backed by Bank
corporation Full Powers Guarantee
b) Payment of advance to government authority, Statutory authority, public utilities, government departments,
including when such advance is not provided in any contract/ supply order/work order
i. Applicable in the situations where there is no other option but to accept the advance payment clause
ii. Any approval accorded by functional Directors shall be reported to the Board on quarterly basis. Cases
approved by L-I executives shall be reported to Functional Directors on quarterly basis
Miscellaneous Payments
5.2 Interest/penalty on various statutory levies
Full Powers Functional Director Cases approved by
Functional Directors should
be informed to Board on
quarterly basis and cases
Up to 5 lakh in each case L-I approved by L-I to be
reported to Functional
Directors on quarterly basis
5.4 Expenditure sanction for payment of fees for ISO & other similar Certification/audits
Full Powers Functional Director
Up to 3 lakh L-I
5.5 Expenditure sanction for post & courier charges, electricity & water charges, other municipal taxes
Excludes purchase of water
for operational use
Deposits/Advance/issue of
Bank Guarantee for availing
Full Powers - As per actuals L-IV/E5
electricity/telephone/water
connection etc. shall require
approval of Competent
Authority under clause 5.1
Part E Schemes
Chapter 6: Schemes
Note:
i. The individual(s) granted authority to make decisions will be accountable for the decision. Hence, in
addition to taking decisions, the authority shall establish clear direction for execution of the decision,
clarify responsibilities for that, set delivery milestones, follow through and deliver on promises made in
the proposal. The authority by being accountable also owns up the responsibility for successful
achievement of objectives of the proposal. The authorities performance will be reviewed periodically
ii. The below chapter would be in force once the Projectised schemes and AFE system are introduced
on firm wide basis
6.2 Approval for additional expenditure in excess of Expenditure Sanction for a Scheme
i. For increase solely due to forex fluctuations, no additional Expenditure Sanction will be needed up to
10% of the sanctioned amount. Such cases to be approved by the Decideing authority for the
budgeted activity, provided revised estimate is within his/her sanctioning power
ii. Sanction of additional funds for already Expenditure Sanctioned cases which are spilled over to next
year is also covered under this clause
iii. Financial appraisal by established Merchant Bankers/Financial Institutions as per the policy approved
by the board
Input Recommend Concur Decide Inform
Functional Director
Full Powers L-I Board -
Director (F)
Note for clause below:
i. Revised estimated expenditure in excess of 10% will require sanction of EC, provided revised estimate
is within sanctioning power of EC for capital and revenue expenditure limits
ii. Inform EC on monthly basis
Up to 10% of any capital scheme
sanctioned by Functional Director
Incharge Functional
provided revised estimate is within L-II L-I CMD
Finance Director
his/her powers of sanctioning
expenditure
Note for clause below:
i. Revised estimated expenditure in excess of 10% will require sanction of Functional Directors, provided
revised estimate is within his/her sanctioning capital and revenue expenditure limits
ii. Inform Functional Directors on monthly basis
Up to 10% of any capital scheme
sanctioned by L-I provided revised Incharge Functional
L-III L-II L-I
estimate is within his/her powers of Finance Director
sanctioning expenditure
Note:
The individual(s) to whom the authority is delegated will be primarily accountable for the decision and his/her
performance during delivery execution shall be reviewed by higher authority on a periodic basis. The
individual(s) shall establish clear direction, clarify responsibilities, set delivery milestones, follow through and
deliver on promises and accept full responsibility for whatever happens within his/her area
7.1 Expenditure Sanction for budgeted capital expenditure (only for the cases where power is exceeded
for clauses 7.4 to 7.8)
Full Powers Board Investment proposals above
500 crore shall be
appraised by established
Merchant Bankers / Financial
Institutions
Proposal to be taken to the
Board after consideration of
Up to 250 crore in each case Functional Director the concerned sub-
committee of the Board
Wherever deemed
necessary, the proposals
shall also be appraised by
independent technical
experts
7.2 Expenditure Sanction for non-budgeted capital expenditure (Provisions for Non-budgeted capital
items should be within the overall budget limit approved by the Board)
i. Funds to be reappropriated from other capital budget of their respective functional area/unit to ensure
that overall capital budget approved is not exceeded. This is further subject to condition that there is no
change in approved plan schemes on account of reappropriation
Up to 50 crore in each case Functional Director
Reasons for such
Expenditure Sanction for
unbudgeted capital items to
Up to 10% of the expenditure sanction powers be recorded subject to prior
L-I
pertaining to capital items concurrence of Finance for
re-appropriation of budget &
sanction
Inform Functional Director on
7.3 Sanction for additional expenditure (In excess of the sanctioned budget for a project/scheme)
i. This sanction power is only for capital expenditure. For revenue expenditure please refer Chapter 8
ii. For increase solely due to forex fluctuations, no additional expenditure sanction will be needed up to
10% of the budgeted sanction. Such cases to be approved by the Decideing authority for the
budgeted activity, provided revised estimate is within his/her power of sanctioning capital expenditure
iii. Sanction of additional funds for already sanctioned cases which are spilled over to next year is also
covered under this clause
Revised estimated
Up to 10% of any capital scheme sanctioned by expenditure in excess of 10%
Functional Director provided revised estimate is will require sanction of EC,
Functional Director
within his/her powers of sanctioning capital provided revised estimate is
expenditure within its sanctioning capital
expenditure limits
Revised estimated
expenditure in excess of 10%
will require sanction of
Up to 10% of any capital scheme sanctioned by L- Functional Directors,
I provided revised estimate is within his/her L-I provided revised estimate is
powers of sanctioning capital expenditure within his/her sanctioning
capital expenditure limits.
Inform to Functional Directors
on monthly basis
7.4 Expenditure Sanction for Permanent or temporary acquisition of land including right of use when
land is acquired for operational activities
i. Cases beyond the powers of L-I shall require Expenditure Sanction from competent authority as per
clause 7.1
ii. Norms refer to requirements with reference to land dimension
(a) When land is acquired through local revenue authorities
i) Cases as per norms (per site) Full Powers Incharge HR/ER
When land is acquired
directly at the rate fixed by
ii) Cases above norms up to 25% (per site) Full local Revenue Authorities,
L-I there is no requirement of the
Powers
committee
(b) When land is acquired on the basis of recommendations of in-house negotiating committee with
representatives from User Department/Finance/HR/Civil
i) Cases as per norms (per site) If negotiated price is more
Full Powers L-I than 20% above the
Up to 20 lakh (per site) Incharge HR/ER prevailing market rates of
7.8 Expenditure sanction for other capital nature /works not directly connected with operational
requirements
i. L-I shall have the powers of sanction of excess Capital Expenditure up to 10% of any capital
expenditure sanctioned subject to that revised estimate is also within their powers of sanctioning
Capital Expenditure
ii. In case of unbudgeted capital items/works, expenditure sanctions to be obtained under clause 7.2
iii. For cases beyond the powers of L-I, refer clause 7.1
iv. Any new purchase/construction of residential or office premises beyond the powers of L1 executive
shall require administrative approval from EC. Expenditure Sanction in such cases to be obtained
under clause 7.1 and such cases to be processed through I/c Estate
Up to 1 crore in each case L-I These powers are to be
exercised only if itemized in
Up to 10 lakh in each case L-II approved budget
Note:
The individual(s) to whom the authority is delegated will be primarily accountable for the decision and his/her
performance during delivery execution shall be reviewed by higher authority on a periodic basis. The
individual(s) shall establish clear direction, clarify responsibilities, set delivery milestones, follow through and
deliver on promises and accept full responsibility for whatever happens within his/her area
Revenue Contracts
8.1 Expenditure sanction for hiring of oil field services
i. Hiring of rigs-drilling/work over, etc.
ii. All types of offshore logistics services including tankers, vessels, barges, helicopters, etc.
iii. Seismic/Logging data acquisition, processing, interpretation services etc.
iv. Cementing/ logging services/ mud-logging/ SDMM/ drill jars/ bit, etc.
v. O&M contract of captive vessels (including docking & effect repairing), plant, machinery, equipment
and installations
vi. Any other type of operational services related to Exploration, Drilling or Production activity
Full Powers Functional Director
Up to 75 crore in each case L-IA
Up to 50 crore in each case L-IB
Up to 25 crore in each case L-IC
Up to 10 crore in each case L-ID
Up to 5 crore in each case L-IE
20% of concerned Level I Powers L-II
5% of concerned Level I Powers L-III
8.3 Expenditure sanction for Revenue items other than hiring of oil field services
i. This should be used only for the cases outside the powers of L-I in the clauses below
Full powers Functional Director
8.4 Expenditure sanction for hiring of special operational services rendered by licensed & skilled
technicians for operational requirements as per the relevant instructions
Up to 2 lakh per month in each case L-I
8.6 Expenditure sanction for hiring of other general services (excluding manpower hiring services) not
specifically covered under any other clause of the BDP
Up to 50 lakh in each case L-I Includes hiring of
communication facilities &
Up to 20 lakh in each case L-II
equipment, VSAT services
Up to 5 lakh in each case L-III and satellites at any location
Lease of Building / Property etc. and Payment of Annual Rent, Crop Compensation and
Restoration Costs (including hiring of camping grounds for field parties)
8.7 Expenditure sanction for lease of building for residential accommodation
i. These powers shall be exercised subject to assessment and certification of the reasonableness of rent
based on prevailing market conditions by the in-house committee consisting of Finance, HR and
Indenting Department or through Government approved valuers to be empanelled by Incharge HR/ER
Incharge HR/ER or In accordance with
Full Powers
Incharge Estate (L- instructions on the subject
8.8 Expenditure sanction for lease of building for operational purpose (other than the cases covered
under 8.7)
a) Expenditure sanction for lease of land & building for office, storage, workshop, parking of vehicles and transit
accommodation
i. These powers shall be exercised subject to assessment and certification of the reasonableness of rent
based on prevailing market conditions by the in-house committee consisting of Finance, HR and
Indenting Department
Requirement of the space
shall be worked out on the
basis of norms wherever
prescribed
Up to 10 lakh per month in each case L-I Cases beyond the powers of
L-I Executive shall require
Expenditure Sanction from
competent authority under
clause 8.3
b) Expenditure Sanction for Payment of Annual Rentals for the land occupied for ONGC operations as per
approved rates
Full Powers As per actuals Incharge HR/ ER
For hiring of camping
grounds for field parties,
Head Geophysical
Full Powers As per actuals based on rate reasonability
Services
assessed by in-house
committee
8.9 Expenditure sanction for restoration costs of abandoned sites before surrendering (includes
restoring the site by ONGC on its own)
Restoration costs to be fixed
up by Revenue Authorities/in-
Full Powers L-I house board of officers not
below E-4 level based on the
SOR rates or below
8.10 Expenditure Sanction for compensation for damage to standing crops, livestock and land &
buildings around operational areas as a result of operational activities
(a) As per award made by Revenue authorities
Incharge HR/ER or
Full Powers Forward Base
Manager
(b) As per recommendation of in-house negotiating committee as mentioned above, when payment cannot be
kept in abeyance for completion of formalities by Revenue authorities
Full Powers Functional Director The limits applies to each
Logistics
Note:
Cases beyond the powers of L- I Executive shall require Expenditure Sanction from competent authority under
clause 8.1 to 8.3
8.12 Expenditure sanction for hiring of goods & passenger transport, both light and heavy handling
equipment
(a) As per approved norms/HQ instructions on the subject
Up to 10 crore per annum in each case L-IA With recommendations from
Up to 6 crore per annum in each case L-IB VC for decision making
Up to 2 crore per annum in each case L-IC Cases beyond the powers of
L-I Executive shall require
Up to 1 crore per annum in each case L-1D/E
Expenditure Sanction from
Up to 20 lakh per annum in each case L-II competent authority under
Up to 5 lakh per annum in each case L-III clause 8.1 to 8.3
(b) Urgent/occasional/short term need like inauguration ceremonies, seminars, conferences & visits of official
delegations etc.
8.14 Expenditure sanction for hiring of service & facilities at ports (including airports), railway
station/yard and allied agencies such as shipping/ trucking/ cargo agents, stevedores, clearing &
handling agents, etc. (includes services such as stevedoring, handling, trucking, clearing & handling
charges and other charges at ports, railway station/trucking, store yard and handling and transporting
charges to warehouse before dispatch of materials to destination and Certification agency dues and
Mercantile Marine Departmental Charges)
Up to 10 crore in each case L-I
Up to 2 crore in each case L-II
Up to 50 lakh in each case L-III
Up to 5 lakh in each case L-IV
8.15 Expenditure sanction for wharfage & demurrage ( supply material transported by ship/road/rail/Air
and end products transported by ship/road/rail)
i. Inform quarterly to L-I All cases of wharfage & demurrage above 5000
ii. Includes ground rent and detention charges
Full Powers - As per actuals L-II FCNR
MM section can also
Up to 25,000 L-III exercise this power on need
basis
9.3 Expenditure sanction for engagement of services from individual domain experts/consultants
Up to 1 crore in each case Functional Director
Up to 25 lakh in each case L-I
Note:
i. The individual(s) to whom the authority is delegated will be primarily accountable for the decision and
his/her performance during delivery execution shall be reviewed by higher authority on a periodic basis.
The individual(s) shall establish clear direction, clarify responsibilities, set delivery milestones, follow
through and deliver on promises and accept full responsibility for whatever happens within his/her area
ii. Cases beyond the powers of L-I shall require Expenditure Sanction from competent authority under
clause 8.1 to 8.3
10.2 Expenditure sanction for repairs/AMC of machineries, pipelines and equipment when in-house
facilities or services are not available OEM/OES cases
Up to 20 crore in each case L-IA This clause shall be used
when repairs/AMC are
Up to 15 crore in each case L-IB
required to be done through
Up to 10 crore in each case L-IC/D/E OEM/ OES or their
20% of concerned L-I L-II authorized agencies/center
only
5% of concerned L-I L-III
Includes maintenance &
support with OEM for
hardware/software
1% of concerned L-I L-IV With recommendation of VC
at work center level for cases
above 5 crore
Non-Operational Building/Property
10.4 Expenditure sanction for Minor additions and alterations to a hired/leased office building, guest
house, bachelor accommodation
i. This power should be used only by one officer at one location (through Incharge Estate)
ii. Those powers shall not be exercised for office accommodation at residence
Up to 1 crore per annum L-I
Up to 50 lakh per annum L-II
10.5 Expenditure sanction for Interiors partitioning and creation of office facilities in a building, which
has been hired/leased
i. This power should be used by one officer at one location (Through Incharge Estate)
ii. These powers shall not be exercised for office accommodation at residence
Up to 1 crore as one time arrangement L-I
Up to 10 lakh as one time arrangement L-II
10.6. Expenditure sanction for repairs and maintenance of ONGC owned residential colony & office
buildings including minor additions and alterations
i. This power should be used only by one officer at one location (through Incharge Estate)
ii. All repair & maintenance to be done through estate section of the location with a view to maintaining
uniformity
iii. All maintenance jobs including pest control, painting etc., including grant in aid to RWA for general
upkeep of colonies will be covered under this section
L-IA/HRO Inform higher authority on
Up to 10 crore per annum
(Mumbai) decisions taken on monthly
Up to 7.5 crore per annum L-IB basis
Periodic review of
Up to 5 crore per annum L-IC/D/E
expenditures shall be carried
Up to 50 lakh per annum Support Manager out
10.7 Expenditure sanction for Payment of common maintenance charges for own/hired buildings
payable to Joint Management Committee/Society
This power should be used
only by one officer at one
Full Powers - As per actuals Incharge HR/ER
location (through Incharge
Estate)
Vehicles
10.8 Expenditure sanction for Repairs to heavy vehicles and transport equipment including expenditure
10.9 Expenditure sanction for Repairs to light vehicles including expenditure for spares and fabrication
of parts
Up to 2 lakh on one vehicle on each occasion L-I Normally repairs shall be
done through Authorized
Up to 50,000 on one vehicle on each occasion L-II
Dealers
Up to 25,000 on one vehicle on each occasion L-III History sheet of each vehicle
to be maintained
10.10 Expenditure sanction for Hiring of repairs & maintenance services (for vehicles, equipment and
technological/communication /operational installations) under a rate contract
Up to 4 crore in each case L-I
Up to 1 crore in each case L-II
Up to 10 lakh in each case L-III
Office Facilities
10.11 Expenditure sanction for repair and maintenance for office equipment/ software including
AMC and Rate contract
Full Powers L-I
Up to 25 lakh per annum L-II
Up to 5 lakh per annum L-III
10.12 Expenditure sanction for repair and maintenance of Furniture and Fixtures of ONGC in official
premises
Up to 20 lakh per annum L-I
Up to 5 lakh per annum L-II
Up to 1 lakh per annum L-III
Up to 20,000 per annum L-IV
11.1 Write off of losses under head materials & Fixed assets, book debts, claims, recoverable, loans &
advances,(including to employee)
i. Approval under this clause is subject to the prior review by Internal Audit. The review shall be carried
out by an authority not below the level of Regional Audit Head for cases to be approved by L-I and
Chief Internal Audit for other cases.
ii. Prior review of internal audit will not be required for each capital item where net book value is up to
5,000 and such book value is up to 2% of acquisition value.
iii. Details of write off of loss approved by Functional Directors and L-I should be submitted by concerned
L-I to EC on quarterly basis.
iv. Includes write off sanction for demolition of existing structure/buildings
Up to 40 lakh in each case Functional Director Value mentioned in powers is
Net Book Value
Wherever, Net Book Value is
not available, it has to be
Up to 10 lakh in each case L-I
assessed by MDT which
shall be constituted with
approval of L-I
11.2 Write-off losses under the head Lost in Hole (tools/equipment lost during operations)
Write-off shall be based on
Concerned Chief of recommendation of a
Full Powers committee constituted by
Services
Chief of Services
Payment for contractors
equipment shall be based on
L-I (Other than the contract terms
Up to Book Value of 5 lakh in each case Inform Executive Committee
Chief of Services)
on decisions taken on
quarterly basis
Note:
i. Cases beyond the powers of Level I shall require Expenditure Sanction from competent authority under
clause 8.1 to 8.3
Hospitality
12.4 Expenditure sanction for serving participants in official meetings, seminars & conferences
(a) Light refreshment
Full Powers - As per actuals L-I
Up to 100 per head (Annual cap 2 lakh) L-II/E7 FCNR
Up to 50 per head (Annual cap 1 lakh) L-III/E6
(b) Working meal
12.5 Expenditure sanction on meetings with distinguished guests, delegation ,members , parties of the
press etc., with whom it is in the interest of the Corporation to maintain or cultivate good relations: a)
Entertainment, b) Serving meal c) Presentations of souvenirs and gifts as per the corporate gift policy
approved by EC, d) Expenditure on travel & boarding
a) Entertainment
As per actuals (Annual cap 7.5 lakh) L-I
Up to 500 per head (Annual cap 1.5 lakh) L-II/E7 FCNR
Up to 500 per head (Annual cap 0.75 lakh) L-III/E6
b) Serving meal
Full Powers - As per actuals L-I
FCNR
Up to 500 per head L-II/E7
c) Presentations of souvenirs and gifts as per the provisions of corporate gift policy
Full Powers L-I
Up to 5 lakh per annum Head CC FCNR
Up to 2 Lakh per annum L-II/Incharge CC
d) Expenditure on travel & boarding
Full Powers - As per actuals L-I FCNR
12.6 Expenditure sanction on flower and other items for decoration in connection with visits of
distinguished guests, Indian & Foreign delegations, parties from the press, other media or any other
special occasion
Full Powers L-I
Up to 500 per head (Maximum 20,000 per
L-II/E7
occasion) FCNR
Up to 300 per head (Maximum 10,000 per
L-III/E6
occasion)
12.7 Expenditure on Tea-Coffee, soft drinks/snacks served during meetings and official discussions
Full Powers L-I
Up to 30,000 per annum L-II/E7
Up to 18,000 per annum L-III/E6 FCNR
Up to 15,000 per annum E5-E4
Up to 12,000 per annum E3-E2
12.8 In-house celebrations/events, Symposia, Seminars, Conferences and Workshops of general nature
Full Powers Functional Director
Up to 10 lakh L-I Annual Limit of 50 Lakh
Up to 0.50 Lakh L-II Annual Limit of 5 Lakh
Office Stationery
12.10 Expenditure sanction for stationery including computer stationery, peripherals, storage media,
cartridges and consumables, forms, registers etc.
Full Powers L-I
L-II/E7 at Corporate
Up to 20 lakh per annum FCNR for expenditure up to
level
20,000 in each case
Up to 10 lakh per annum L-III
Up to 2 lakh per annum L-IV/E5
12.11 Expenditure sanction for printing, binding & reproduction jobs for reports, official documents,
forms publications, etc. (per annum)
Full Powers L-I
Up to 20 lakh per annum L-II FCNR for expenditure up to
L-III/E6 at corporate 20,000 in each case
Up to 10 lakh per annum
level
12.12 Expenditure sanction for photocopying, duplicating and typing, drawing, design, etc. from
outside agencies
Full Powers L-II FCNR for expenditure up to
20,000 in each case
L-III/E6 at corporate
Up to 15,000 per month Urgency or when in-house
level
facilities are not available
13.1 Expenditure sanction for market survey/study for identifying customers / markets / products
(including consultancy for marketing related issues)
Director I/c
Up to 10 crore
(Marketing)
Up to 25 lakh in each case subject to overall
L-I
limit of 1 crore per annum
Up to 5 lakh in each case subject to overall limit
L-II
of 50 Lakh per annum
13.3 Policy regarding Retail Business, Allied Retail Business and new markets/ventures
Executive
Full Powers
Committee
13.5 Approval for sale of Value Added Products at Refinery Transfer Price (RTP) or above
i. Cases beyond powers of Chief Marketing and Asset/Plant Managers shall require approval of
Competent Authority under clause 13.4 (iii)
Based on the
a) i) Full Powers in case of PSU customers. recommendation of a
ii) For non-PSU customers committee comprising of
Chief Marketing
Up to 50,000 MT or 400 crore whichever is officials from Marketing,
lower in each case Finance/Commercial &
Operations
To be exercised in case of
operational requirement /
exigency only
Based on the
recommendation of a
b) Up to 5000 MT or 40 crore whichever is Plant managers / committee comprising of
lower in each case Asset Managers officials at Asset/Plant from
Marketing, Finance &
Operations
Inform Chief Marketing on
decisions taken on monthly
basis
13.6 Approval for sale of sulphur/ other by-products under annual rate contract through:
On nomination basis in case of operational These Powers may be
requirements / exigencies exercised by Heads/
L-I
200MT on a case to case basis subject to annual Executives of
limit of 1000MT Plants/Assets/Marketing.
Cases beyond powers of L-I
shall require approval of
Competent Authority under
Open Tender Full Powers L-II
clause 13.4 (i) to (iv)
Report for nomination cases
to be submitted as per the
13.10 Purchase of raw material / feed stock such as LNG/VAP, etc through term sheet /agreement or
direct spot purchase from market
Full Powers EPC Inform higher authority on
Director I/c decisions taken on monthly
Up to 150 crore in each case
(Marketing) basis
13.11 Entering into hospitality arrangements for hiring facilities (for raw materials or retail products) or
for retail product exchange/ purchase
Director I/c
Full Powers In concurrence with Chief
(Marketing)
Commercial
Up to 10 crore in each case Chief Marketing
13.12 Purchase of land for opening Metering Station/Retail outlet for ATF/Petrol/Diesel/Other Products
Executive Based on the
Full Powers
Committee (EC) recommendation of
committee of HR, LAQ &
Marketing officers with Chief
Director I/c
Up to 10 crore each case Marketing as Head with
(Marketing)
Legal vetting and Financial
concurrence
13.13 Giving ONGC land on lease on annual basis for setting up Metering Station/Pumping
station/laying of pipelines by GAIL /OMCs/JVs
With recommendation from
Full Powers Director Concerned
Director I/c (Marketing)
Director I/C
Full Powers
CM&SG In concurrence with Head
Up to 1 lakh units or 1 crore whichever is lower CM&SG
Chief CM&SG
in each case
14.1 Approve policy regarding environmental, health and safety matters (including permits, licenses,
authorizations, mandatory codes of practices)
These Proposals shall be
Executive
Full Powers routed through Chief HSE
Committee
FCNR
14.2 Expenditure sanction for engaging HSE consultants/expert agencies and conducting workshops /
training / awareness programs by calling domestic/international experts for HSE trainings
Full Powers Director Concerned
Up to 20 lakh in each case L-I/ Chief HSE
At Asset/Basin/Plant
Up to 5 lakh in each case L-II/Head HSE
/Services
14.3 Expenditure sanction for hiring of auditing agencies and EIA studies with respect to HSE
management
Full Powers Director Concerned
Up to 1 crore in each case L-I/ Chief HSE
14.4 Expenditure sanction for organizing meetings with statutory agencies like DGMS, OISD, MOEF etc.
for solving critical issues
Full Powers Director Concerned
Up to 5 lakh in each case L-I/ Chief HSE
Up to 50,000 in each case L-II/Head HSE
14.5 Expenditure sanction for safety critical equipment/element/kits & liveries/personal protective
equipment
Full Powers Director I/c HSE
Up to 5 crore in each case L-I/ Chief HSE
Includes kits and liveries for
L-II/ Support security services as per the
Up to 1 crore in each case
Manager norms
Incharge HSE/
Up to 50 lakh in each case
Incharge HR/ER
15.3 Expenditure Sanction for Hiring of Merchant banks, Investment banks and professional
consultancy for business development purpose after in-principle approval by competent authority
Concerned Inform higher authority on
Full Powers Functional decisions taken and
Directors expenditures incurred on
Up to 2 crore Chief BD & JV monthly basis
16.1 Approval for bidding of particular block/ blocks including selection of partners
i. In-principle approval of Director (E) in consultation with Director (F) to be taken for selection of partners
for bidding of Block/ blocks and for Joint Bidding Agreement (JBA) & JBA negotiating Team with
authorized signatory as well as assumptions and tentative costs required for evaluating the blocks and
finalizing the bidding parameters, Work program and fiscal parameters for block/blocks
Full Powers Board
16.2 Approval of Production Sharing Contracts (PSC)/similar Contracts, Joint operating Agreement
(JOA)/Similar Agreement & Negotiating Teams
Full Powers Director (E) Inform CMD
16.4 Approval for finalizing/revising the annual Work program within the approved work program
Full Powers L-I
16.6 Approval for submission of Bank Guarantee / Bid Bond in form of Bank Term Deposit
Full Powers Functional Director
17.2 Execution and Signing of Guarantees and Deeds as per format in the JOA/ PSC
Approval of Director
Concerned and Director (F)
shall be required when it is
Full Powers As per the format & amount
L-I not as per the format in the
specified in the JOA/ PSC
JOA/ PSC or where amount
of Guarantee is not specified
in JOA/PSC
17.4 Authorization for expenditure / authorization for expenditure request ( AFE /AER)
a) AFE / AER covered fully in the approved work program and budget
ONGCs
Representative in With concurrence of the
Full Powers
Operating associated Finance of JV
Committee
b) AFE in excess of the approved work program & budget
Chief JVOG/L-I in
concurrence with the head of
Associate Finance provided
the excess amount is not
more than 10% of the
Full Powers Chief JVOG / L-I approved budget and the
total amount does not exceed
his/her sanctioning power
Any expenditure beyond the
above requires the approval
as per clause 6.2
Notes:
i. Controlling Officer means an officer not below the level of E-2 and immediately above the concerned
employee to whom the latter reports for work. Officers at E-6 and above levels will be self-certifying
officers for the purpose of Travel Allowance and other personal claims
ii. Policy matters relating to new Employee welfare and Perquisites shall require approval of Executive
Committee
iii. The item not covered in this section of BDP shall be referred to Director (HR) for decision.
iv. FCNR unless specified
Personnel Management:
18.1 Approval for creation and winding up of posts
Board (through
E8 & E9
HRM Committee)
With recommendation of
Director (HR) and
Up to E7 CMD
concurrence of Director
(Finance)
DPC comprising
E8 and E9 members of HRM
chaired by CMD Approval of Chief HRD for
Class III and Class IV to be
E5-E7 CMD (through EC)
through DPC
Class-III (including S level) & class-IV
Chief HRD
employees and executives up to E4 level
18.7 Transfer
i. For CRC positions (L-II & L-III), case has to be initiated by the concerned unit for approval of Director
Concerned (Functional), Director Concerned (Administrative) & Director (HR) through Chief-HRD
ii. Unit is defined as Asset / Basin / Service / Plant/Institutes / ROs. Even Asset and Service at one
location are two separate units
(a) Inter Unit Transfer (Change of station)
EC in consultation with
Director Concerned
E7 and above EC (Functional), Director(HR) &
Director Concerned
(Administrative)
Director(HR) in consultation
with Director Concerned
E0 to E6 Director (HR)
(Functional) & Director
Concerned (Administrative)
Chief-HRD in consultation
Unionized category of employees Chief HRD with Chief-ER and L-I of
concerned units
(b) Intra Unit Transfer
L-I, E8, E9 EC
Director(HR) in consultation
with Director Concerned
L-II, L-III, E-7 Director (HR)
(Functional) & Director
Concerned (Administrative)
E5 to E6 (other than L-II & LIII positions) L-II Full powers for reassignment
18.11 Authorize travel by Air on tour for employees not eligible to travel by air
Full Powers Functional Director
18.12 Hiring/ Reimbursement of Light Vehicles, while on Official Tour at stations other than ONGC work
centers outside the range of ONGC Logistics
Limited to ONGC Contracted
Full Powers L-II rates per day at comparable
locations
Medical:
18.15 Expenditure sanction for purchase of medical stores, including medicines and pharmaceutical
items from reputed / standard manufacturers or their authorized dealers at hospital rates/rate contracts
i. Bulk purchase on rate contract against requirement shall be made by the Chief Medical services on a
centralized agency at bases or higher formations
ii. Medicines can be purchased on day to day indents on local suppliers only when medicines are not
available in stock
iii. These powers are to be exercised through Incharge Medical as per the existing & applicable guidelines
iv. Financial Concurrence required
L-I (Work Center)
Full powers
//CMS (HQ)
Up to 1 crore per annum where ONGC
Head Medical
Hospitals are functioning
Up to 50 lakh per annum for other work centers L-II
Up to 30 lakh per annum for other work centers Incharge Medical
18.17 Sanction in individual cases, under special circumstances (including treatment at non-ONGC
locations), reimbursement of medical expenses in relaxation of the Medical Attendance Rules
Full Powers Director (HR) Financial Concurrence
required for cases above
Up to 5 lakh in each case Chief ER
20,000
Up to 2 lakh in each case L-I These powers shall be
Up to 50,000 in each case L-II exercised in consultation with
Medical Authorities and
concurrence of Finance
If the treatment is to be taken
abroad then the approval of
Up to 20,000 in each case Incharge HR/ER
CMD, Director (HR) and
Director (F) will be required
and followed by concurrence
of Ministry of Health
18.18 Approval of posts and appointment of doctors & paramedics on contractual basis (Part time or
Full time)
On recommendation of Chief
Medical services
L-I shall have full powers to
Full Powers Director (HR)
accord expenditure sanction
for payment to contractual
doctors/paramedics
Corporate Communication
18.19 Expenditure sanction for all types of advertisements of non- statutory nature including goodwill
advertisements
Full Powers Director (HR)
Up to 5 lakh in each case Chief CC
Inform higher authority on
Up to 2 lakh in each case decisions taken and
L-I
(Annual limit 20 lakh) expenditures incurred on
Up to 1 lakh in each case monthly basis
Head CC
(Annual limit 10 lakh)
Up to 50,000 in each case
Incharge CC
(Annual limit 5 lakh)
18.20 Expenditure sanction for statutory advertisements including tender & employment
advertisements
Full Powers Incharge CC
18.21 Expenditure sanction for design and printing of brochures /diaries/ house journals / calendars /
publicity materials including displays/ banners/ posters/ insignia/ photography/ videography and all
18.23 Expenditure sanction for sponsoring media/cultural/sports events as well as grant of financial
assistance / sponsorship to Schools/ University / Institutes/Professional Bodies/Internal ONGC Bodies
or Clubs/Others ( for cases not covered under CSR policy)
i. For grant-in-aid to ONGC clubs and Employees Welfare Committee, Incharge HR/ER shall have full
power
ii. As per the existing guidelines
iii. Financial Concurrence required
Full Powers Board Inform EC on a quarterly
basis - details of cases
Up to 1.5 crore in each case Executive Committee
approved by CMD &
Up to 10 lakh in each case Director (HR) Functional Directors
Functional Directors shall
take decision only for
Up to 10 lakh in each case
Functional Director proposals under work
(Annual limit 50 lakh)
center/areas within their
administrative control
Through Incharge CC
Up to 2 lakh in each case Cases approved by L-I
L-I
(Annual limit 10 lakh) should be reported to
Functional Director
Sports
18.25 Expenditure sanction for all Sports Related activities
a) Abroad Full Powers EC Includes all sports related
b) In India activities
Full Powers Director (HR) Includes training/ seminar/
18.26 Expenditure sanction for kits and liveries as per approved norms
Full Powers Head Sports Financial Concurrence required.
Training
18.27 Expenditure sanction for arranging or participating in Training/ Seminars/ Conferences
i. These powers to be exercised for approved/non-calendar training programs
ii. Includes Honorarium to internal faculty/evaluators as per policy
iii. Includes expenditure sanction for kits & liveries
a) Abroad CMD
b) In India
Full Powers Director (HR)
Applicable for approved
calendar programs
This power can be exercised
Up to 50 lakh in each case Head of Institutes
by Head SMP as well
Financial Concurrence
required
Applicable for non-calendar
group training programs
This power can be exercised
Up to 10 lakh each case Head of Institutes
by Head SMP as well
Financial Concurrence
required
Applicable for non-calendar
individual training programs
Up to 10 lakh per annum L-I - Powers are limited to
25,000 per participant per
program
Notes:
i. For Taxation matters, powers under this Chapter can be exercised in consultation with Head Direct
Tax/ Head Indirect Tax, as applicable. In such cases, consultation of I/C Legal shall not be required.
ii. All cases are FCNR unless specified
19.1 Execute and sign contracts and agreements including contracts and agreements for sale/purchase
of products, the prices in respect of which have been approved by the Competent authority
i. These powers shall be exercised in respect of contracts and agreements concerning their respective
sphere of functions and subject to the conditions that:
a) The Competent authority has approved award of work
b) The contract has been vetted from technical, financial and legal angles by appropriate authorities.
c) Terms and conditions of contract have prior approval of Competent authority
ii. Authorities in the disciplines of Materials, Marketing, Engineers, Technologist and Scientists shall
exercise such enhanced powers in their own sphere of duties as may be delegated to them by the
Competent authority from time to time under the respective items of powers
iii. The Company Secretary shall have full powers to execute and sign all contracts and agreements on
behalf of the Corporation in all cases if conditions a, b and c above are met
iv. CMD may, at his/her discretion, authorize the signing of Contracts/Agreements of any value to any
officer. However, for contracts above 10 crore such delegations should be to an officer not below the
level of E-7
Full Powers L-I
Up to 10 crore in each case L-II
Up to 5 crore in each case L-III
19.3 Engagement of advocates & solicitors outside India, advocates from India for foreign assignment
and approve their fees.
Full Powers EC
19.4 Power to initiate/ institute / defend legal proceedings in courts, judicial, quasi-judicial forums,
tribunals, institutional/departmental authorities, etc.
Full Powers L-I In consultation with Legal
19.5 Refer a dispute for arbitration, appoint arbitrator from approved panel and accord sanction and
authorize payment of their fee
Full powers in consultation
with the associated legal and
finance as per guidelines on
the subject. Appointment of
Full Powers L-I
any arbitrator from outside
the panel will require
concurrence of Chief, Legal
and approval of Director (HR)
19.6 Powers to engage/ appoint attorneys, solicitors, advocates, counsels, legal / tax consultants and
authorize payment of their fees, travel expenses, conveyance, stay, miscellaneous expenses etc. in
India
i. Financial Concurrence is required for cases where payment of fee is above 50,000 in each case
ii. For the powers, cumulative expenditures would be seen for each case. When Incharge Legal is not
there, power has to be exercised by I/C HR-ER/L-II
iii. Engagement of advocates not empaneled will require approval of Chief Legal
Full powers. (in consultation with I/C Legal) L-I
Up to 1 lakh in each case (in consultation with L-II/ Incharge
I/c Legal) HR/ER
Up to 1 lakh in each case Incharge-Legal
19.7 Power to engage /appoint Industrial Law/ Labour Law Advisors/ Attorneys/Solicitors for and on
behalf of the Corporation in Labour/ Industrial matters and in cases before Labour/ Industrial Courts/
Tribunals and to make payment thereof
Financial Concurrence is
required for cases where
Full Powers L-I
payment of fee is above
50,000 in each case
19.8 Power to sign plaints, written statements, applications, affidavits, vakalatnamas and other
documents to be filed in courts/ tribunals/ statutory bodies/ quasi-judicial bodies and arbitration
proceedings and authorize an employee of the Corporation (not below E-2) to sign and file any
document referred above relating to ONGC, shareholders, investors and/or under the provision of the
Companys Act, other enactments, listing agreements, regulations and guidelines issued by SEBI,
Stock exchanges and/or other statutory bodies/authorities
i. Full Powers in respect of all matters falling under their control and provided the document, if required, has
been vetted by Law Department and / or by Company Secretary
Full Powers L-II
19.9 Power to sign and verify tax returns/documents to be filed in Tribunal Tax department and to plead
cases at all levels for and on behalf of the Corporation
Incharge of F&A may
Full Powers Incharge-F&A authorize an officer not below
E2 to exercise these powers
19.10 To sanction expenditure on Court fees and miscellaneous court expenses including stamp
papers and clerkage
L-II/
Full Powers - As per actuals Incharge HR/ER/
Incharge Legal
19.11 Powers to sanction misc. expenses relating to arbitration proceedings including expenses on
venue, stay, conveyance, travelling of arbitrators
Full Powers - As per actuals L-I
Financial Concurrence
Incharge HR/ER
Up to 1 lakh in each case. required
/Incharge Legal
19.12 To approve deposit of money with the court/Statutory Authorities as per the directions of
court/statutory authorities (Each Case)
i. In consultation with Incharge Legal
19.13 Power to accept arbitration awards, court Judgments, orders of statutory authorities or to decide
for appeal, review etc or to settle or accept disputed claims and withdrawal of the case from the court /
arbitration/ authority based on legal advice/court judgment/arbitration award
Full Powers EC In consultation with Legal.
Disputed amount up to 25 crore in each case Functional Director Disputed amount to be
calculated by aggregating the
amount of claim payable by
ONGC under award/
Disputed amount up to 10 crore in each case L-I judgment/ settlement plus
claims/counter claims of
ONGC
Full Powers - HR/IR matters Director (HR) In consultation with Head HR
at the location
Collaborate
20.2 Enter into collaboration with university or a research organization (including expenditure
sanction)
Full Powers Functional Director
FCNR
Up to 1 crore in each case L-I
20.3 Expenditure on scientists/technologists from within the country and from outside for consultancy
on R&D projects including inviting them and incurring expenditure on their travel, hospitality and
honorarium/fee
Full Powers Functional Director
Inform Functional Director
Up to 1 crore in each case L-I
quarterly on decisions taken
20.4 Expenditure on calling outside experts for Symposia, Seminars, Conferences and Workshops on
scientific/technical /management subjects, when arranged by calling outside experts including inviting
them and incurring expenditure on their travel, hospitality and honorarium
Full Powers Functional Director
Up to 10 lakh (per occasion) L-I
20.5 Participate in JIP (Joint Industry Project) of research nature with university, academic institute,
research organization or reputed agency (including expenditure sanction)
i. Also include payment of contribution as per the approved work programme
Inform CMD on quarterly
Full Powers Functional Director
basis
Inform Functional Director on
Up to 3 crore in each case L-I decisions taken and
expenditures incurred on
monthly basis
Note:
i. Discarding & Disposal powers are FCNR unless specified
ii. Book value (BV) means Net Book value
21.1 Discarding & Disposal of any machinery, equipment, vehicles, tools, stores, spares, etc., including
approval of reserve price (except for cases covered under clause 21.2)
i. Any capital item except Furniture and Fixture where the gross book value of individual item is up to
25,000 and net book value is less than 1,000 can be declared fit for disposal by indenter/user
department after obtaining approval of Competent Authority as below without constitution of Survey
Board
ii. Wherever book value is not available, value will be assessed by a board as per Disposal Procedure
Full powers EC
Up to BV of 5 crore in each case Functional Director
21.2 Discard or declare fit for disposal including approval of reserve price
i. Any capital item except Furniture and Fixture where the gross book value of individual item is up to
25, 000 and net book value is less than 1,000 can be declared fit for disposal by indenter/user
department after obtaining approval of Competent Authority as below without constitution of Survey
Board
ii. Wherever book value is not available, value will be assessed by a board as per Disposal Procedure.
iii. Cases beyond powers of Level I, refer clause 21.1
a) Regular disposal items such as empty barrels, burnt oil ,casing pipe thread protectors and all types of scrap
like wooden, auto, electrical, tyres and tubes, batteries, electrical wires and cables glass leather, canes, wire
ropes etc. which have specific life period completed
Up to BV of 2 crore in each case L-I To be directly sent for
disposal by the user
Up to BV of 40 lakh in each case L-II
department on the basis of
certificate by an authorized
officer not below E-5 level for
the disposal of the items
declaring such items as
condemned
Up to BV of 10 lakh in each case L-III No approval of competent
authority (CA) required for
condemnation & declaring fit
for disposal
Reserve price (RP) fixed by
board will require approval
by Competent authority
b) Unserviceable stores and spares
Up to BV of 2 crore in each case L-I To be sent to disposal
directly if they have been
Up to BV of 40 lakh in each case L-II
declared as beyond
economical repair (BER) or
unserviceable by the
standing condemnation and
disposal board.
No specific approval of CA is
Up to BV of 20 lakh in each case L-III required in such cases.
However, approval of CA
should be required for
tubulars like casings and drill
pipes.
RP fixed by board will require
approval by CA
c) Capital items which are unserviceable or beyond economic repairs
Up to BV of 40 lakh in each case L-I Approval of CA is required
for condemnation and
declaring fit for disposal
RP will be fixed at higher of
Up to BV of 10 lakh in each case L-II
the Book Value or 2% of the
Gross Value and approval of
CA is not required
d) Vehicles
Up to BV of 40 lakh in each case L-I Approval of CA is required
for condemnation and
declaring fit for disposal
RP will be fixed at higher of
Up to BV of 10 lakh in each case L-II
the Book Value or 2% of the
Gross Value and approval of
CA is not required
e) Serviceable, obsolete, unwanted and Surplus stores and spares and capital items
Up to BV of 2 crore in each case L-I Approval of CA is required
for condemnation and
Up to BV of 40 lakh in each case L-II
declaring fit for disposal
RP should be fixed by Board
Up to BV of 20 lakh in each case L-III officers with the approval of
CA
Note:
i. Material Management powers are FCNR unless specified
22.1 Partial/Full waiver of LD and/or condonation of delay attributed to contractor, with complete
justification
Tender Committee to be
Full Powers CPA (not below L-I)
held
Change Order
22.3 Approval of Change Order for LSTK/EPC Contracts subject to the condition that sum of all change
orders (including those issued by subordinate authorities) shall not exceed the specified percentage of
the original contract value
i. These powers are in respect of each contract.
ii. The limit mentioned below is for the sum of the cumulative absolute value of all positive change orders
and the cumulative absolute value of all negative change orders
a) For Contracts with value more than 5 crore
i. No change order exceeding 10% of the contract value shall be issued without the approval of EPC
Full Powers EPC
Subject to the condition that
sum of all change orders
(including those issued by
Up to 50 crore each change order Functional Director
subordinate authorities) shall
not exceed 10% of the
original contract value
Up to 25 crore each change order L-IA Subject to the condition that
sum of all change orders
Up to 15 crore each change order L-IB
(including those issued by
Up to 10 crore each change order L-IC subordinate authorities) shall
not exceed 5% of the original
Up to 5 crore each change order L-ID/E
contract value
b) For Contracts with value up to 5 crore
Full Powers EPC
Total sum of all change
Up to 100% of original contract value Functional Director
orders shall be restricted to
22.5 Certify an item of stores, spares or of capital nature, technology and services as Proprietary
Spares for vehicles,
machineries, tools and
equipment, which are
manufactured only by a
particular firm and for which
Full Powers L-I
no substitutes are available
are to be treated as
Proprietary Articles and no
approval is required in such
cases
Note:
i. Engineering works shall also exercise powers, wherever applicable, pertaining to material management
from chapter 22 and 24. Engineering powers are FCNR unless specified
23.1 Accord Technical Sanction to detailed estimates in respect of a work sanctioned by Competent
Authority
Head Engineering
Service/L-II/ E-
Full Powers 7/Head-
Infrastructure This power can be exercised
Development by officers from engineering
Up to 5 crore in each case L-III/E6 department only.
Up to 2 crore in each case L-IV/E5
Up to 50 lakhs in each case E4
23.3 Accord technical sanction for deviation in quantity against an item, either rated or non-rated
(variations being more than 25% as compared to the estimated rates plus escalation on the basis of
cost index) as may be applicable
i. The officers may award such quantities up to 10% of the quantities stipulated in the Agreement.
ii. Variations in quantities beyond 10% shall require approval of CTA not below the authorities mentioned
below. Their powers to award such quantities shall further be restricted to the monetary limits
mentioned below. These powers shall not be utilized concurrently
iii. It will be the responsibility of Sanctioning Authority to ensure that the status of the accepted tender
does not change due to award of such enhanced quantities
iv. Reasons for deviation in such quantities are to be mentioned and justified in the file
Up to 20 lakh in each case L-I
Up to 10 lakh in each case L-II
Up to 6 lakh in each case L-III/E6
Up to 4 lakh in each case L-IV/E5
Up to 1 lakh in each case E4
Up to 75,000 in each case E3
23.6 Purchase of various types of building materials by Civil Engineers and Signing of Supply order
thereof.
Up to 2 crore in each case L-IA Normal purchase procedure
shall be followed while
Up to 1 crore in each case L-IB
exercising these powers
Up to 50 lakh in each case L-IC All purchase shall be against
Up to 25 lakh in each case L-ID/E sanctioned estimates for
Up to 15 lakh in each case L-II/E7 which administrative approval
and expenditure sanction of
Up to 5 lakh in each case L-III/E6 Competent Authority exist
The Engineer would be
empowered to purchase all
types of building materials for
civil works. They can request
Up to 2 lakh in each case E5 the Materials Management
irrespective of the above
powers to make purchase for
them in cases where
purchase can be deferred
Notes:
i. Powers of procurement are different from Administrative Approval and Expenditure sanction powers
ii. All cases are FCNR unless specified
iii. Prior approval of Competent Purchase Authority not below L-I is required along with Purchase Indent
for cases where procurement is to be done through method other than open tender and Functional
Director shall have full power for EPC cases
24.3. Signing and placement of supply order for stores, spares and capital items and for signing
contracts
Tender Committee member of the indenting/TPG department (not below E-1) can also exercise these powers
to sign supply order/ contracts specific to their department when the procurement is not routed through MM.
The above powers will be exercised subject to authorized signatory satisfying himself of the conditions below:
i. Proper expenditure sanction for the procurement exists.
ii. The purchase has approval of competent purchase authority
iii. Agreement /Contract is placed on standardized/approved terms and conditions
iv. In case a tender results in multiple Orders/ Contracts, signing powers will be decided based on the sum
total of all the individual orders/ Contracts
MM member of
Full Powers
Tender Committee
25.1 Expenditure Sanction including power for purchase /hiring/ contracting of Capital/revenue items
in case of disasters caused by reasons like (1) natural calamities like flood, fire, civil disturbances, war,
cyclones, etc., (2) accidents like blow outs, fire, mortality, safety, environment issues, (3) Security
breaches
FCNR
No Tender Committee is
required
On single tender on
Full Powers - As per actuals L-I nomination basis without
reference to Purchase
Department / Engg. Service
Reporting would be done as
per the prevailing guidelines
25.2 Expenditure Sanction including power for purchase/hiring/ contracting of Capital/revenue items
during operational emergency/ breakdown
i. Detailed justification should be recorded at the time of processing the proposal for approval
ii. Reporting would be done as per the prevailing guidelines
iii. On single tender on nomination basis without reference to Purchase Department / Engg. Service
CMD to exercise full powers,
in case, it is not feasible to
Full Powers EPC convene EPC due to
emergency
FCNR
Up to 10 crore in each case Functional Director FCNR
No Tender Committee is
required
Inform higher authorities on
Up to 2 crore in each case L-I
decisions taken and
expenditures incurred on
monthly basis
25.3 Expenditure sanction including power for purchase for medical stores including medicines,
pharmaceutical items in Medical emergencies/natural calamities/civil unrest/Emergency work site
requirement, from empanelled chemist shops
FCNR
On single tender on
Full Powers L-I/CMS nomination basis without
reference to Purchase
Department / Engg. Service
Part M Appendix
Note:
i. Powers to be subsumed under a Policy and related clauses to be shifted to respective Manuals
3. Empanelling Ad-agency and other professional bodies for advertisements (other than corporate
advertisements which are directly handled by Corporate Office).
Committee consisting of Chief
Marketing, Head Corporate
Full Powers Director (HR) Communication and other
Business Heads such as Retail,
LPG etc. as members
Materials Management
5. Approve empanelment / registration of firms for supply of various oil specific items / services
i. Empanelment/registration of firms for Supply of various oil specific items to be approved by concerned
Directors on standing basis after concurrence by Head of Institution / Office. Validity of empanelment
should not be more than three years.
ii. Empanelment/registration of firms for Supply of oil specific items will be done in accordance with the
prescribed procedure.
iii. De-empanelment/De-registration of Firm requires approval of same competent authority
Director Concerned
Full Powers in consultation with
Director I/c MM
7. Approve and countersign a Goods Receipt Voucher, an Issue Voucher and Material Transfer Note
Where materials management
MM Officer not officer of E.1 level is not posted
Full Powers
below E.1 i.e. E.0 (MM) may sign the
GRV's/IV's and MTN's
8. Approve and countersign a Stock Discrepancy Report and direct follow-up action
Where materials management
Full Powers E.1 (MM) officer of E.1 level is not posted,
Up to Rs. 10,000 E.0 (MM) E.0 (MM) may exercise full
powers
Communication
11. Installation charges, Deposit & Rental Charges
i. Telephones (including Mobile Phones), internet connectivity ,wireless equipment, leased lines and
other tele communication equipment (including call charges)
E-4 level officer in Infocom/HR in respect of telephones
installed in accordance with the prescribed
Full Powers instructions/policy on communication facilities
Surcharge for delayed payment will require approval of
L-I (FCNR)
12. Reimbursement of call charges in respect of telephones installed at Residence of employees &
others
i. Reimbursement of call charges in respect of telephones installed at Residence of employees & others
Once the reimbursement is sanctioned by competent
authority as per guidelines, monthly or bimonthly
call/rental charges can be reimbursed on self-
certification as per limit or actual whichever is lower.
Full Powers Excess calls however will require the approval of L-I
/ED/ E8/ Director Concerned (FCNR). However, fresh
approval should be obtained every year in all the cases
where reimbursement is allowed to non-eligible
employees & others
14. Enter into an agreement with a reputed firm of auctioneers, for sale by auction of assets and other
materials declared fit for disposal.
Full Powers In-charge MM With financial and legal vetting
15. Authorize sale of packing boxes, empty containers and POL barrels to employees.
Full powers at the reserve price
Full Powers E.1(MM)
FCNR
Engineering Powers
17. Invite open tender
Full Powers E.1
Financial Management
18. Pre-audit of bills/invoices and authorization of journal entries and Signing of negotiable
instruments (such as cheques, bills, notes, letters of credit, etc.)
i. For journal entries pertaining to automated system processes such as cost cycle run, depreciation run,
WBS/Order settlement, E1 and above shall have full powers
E4/ This power pertains to F&A
Full Powers
Incharge Finance department only
Up to 1 crore E3 Joint signature of the
deciding authority and one
Up to 50 lakh E2
officer not below E1 is
Up to 10 lakh E1 required
Pre-audit powers can be
exercised by single officer for
Up to 50,000 E0 cases upto 10 lakh
Pre-audit powers are based
on the contract/PO value
Personnel Management:
Note:
These cases are FCNR unless specified
31. Sanction incentive/personal pay for adopting small family norms, including special casual leave
Full Powers Incharge HR/ER As per policy
42. Sanctioning /Investigation of claims of employees to arrears of pay and allowances, increment or in
respect of any other under payment which has remained in abeyance for a period exceeding 1 year
from the date of the claim was due
Full Powers to sanction/investigation in respect of
Concurrence of associated
claims not more than 6 years old relating to officers L-I
Finance required
and staff under his administrative control.
44. Expenditure sanction for procurement of Retirement Momento for employee on retirement/VR as
per actuals
Based on scheme/Instructions
Full Powers L-I on the subject
Financial concurrence required
Competent
Full Powers Disciplinary Financial concurrence required
Authority
50. Grant of commuted leave on medical grounds and acceptance of certificate of medical fitness on
resumption of duty
Upto 30 days Controlling Officer
31-90 days I/C HR-ER
>90 days L-I Through Incharge HR/ER
51. Maternity/Paternity/Adoption Leave/Quarantine Leave , EOL on medical ground and Leave not due
in emergency
As per ONGC Rules and as per
L-III / Incharge
Full Powers medical advice, wherever
HR/ER
applicable
56. Study leave and /or extraordinary leave for pursuing studies
In consultation with Director
concerned and in accordance
Full powers Director (HR) with Leave rules Case to be
referred to CMD when there is
divergence of views
Cancellation charge to be
Full Powers Controlling officer
claimed through TA Bill.
60. Allow travelling allowance for a journey on official duty, made during leave or while proceeding or
returning from leave
Full Powers in respect of officers and staff under
L-I
their administrative control for reason to be recorded
61. Authorize travels in an individual case, by a route other than the shortest or the cheapest
Full Powers, reasons to be recorded L-I
62. Sanction daily allowances at full rates in excess of normal limits prescribed under the T.A
Regulations
Full Powers up to 60 days for special reasons to be
Director Concerned
kept on record
63. Permit extension of the prescribed time limits within which the members of an employees family
travelling separately on transfer, may be treated as accompanying him in individual cases, under
special circumstances
Full Powers beyond 6 months and up to 1 year L-II
Beyond 1 year, up to 3 months L-I
Beyond 1 year, up to 6 months (Except NE Cases) Chief ER
Beyond above (Except NE Cases) Director (HR)
64. Decide that a route, which is not the shortest or the cheapest shall be treated as the shortest route
Full Powers Chief ER Financial concurrence required
66. Travel Expenditure including transportation of personnel effects in case of death of employee
Full Powers L-I As per guidelines on the subject
73. Pay Advance/ Conveyance/House Building Advance/Any other interest bearing Advance
In accordance with the
Full Powers Incharge HR-ER
instructions on the subject
74. Relax the condition of purchase of conveyance beyond the normal period of 1 month from the date
of drawl of advance
Up to one additional month beyond the normal
Incharge HR/ER
period of one month , in exceptional circumstances
75. Permit acceptance of employment by a member of an employees family, in company or firm, with
which the employees concerned has official dealings.
Report to Board in respect of E7
Full Powers L-I & above level executives and to
EC for E6 and below
76. Permit conducting or participating in the editing or management of any newspaper or other
periodical publication
Full Powers, provided not in conflict with the interest
Concerned Director
of the organization or the job assignment
78. Permit undertaking of activity outside the organization for which an honorarium is offered
Full Powers L-I
79. Permit any transaction concerning immovable or moveable property with a person or firm , having
official dealings with the employee or his subordinate
i. This provisions will not be applicable in cases where the employee performs normal business
transactions with public institution like Banks, Insurance Co. etc., which the institutions normally render
to all the Public at large, in the course of their business
Full Powers up to E-7 L-I
Full Powers Director (HR)
Medical:
82. Empanelment of local/visiting specialists & fixation of their consultations fees/ honorarium/
investigation/ treatment charges and Empanelment of hospitals, nursing homes, diagnostic centers
& chemist shops including extension / revision
FCNR
CMS-HQ
Full powers. As per approved
HRO-Mumbai
Full Powers guidelines on the subject and
L-I (other work
concurrence of Chief Medical
centers)
Services
89. Any expenditure for medicines and medical stores items required for organizing medical camps
i. FCNR for expenditure upto Rs. 10,000 in each case
ii. Funds to be booked under CSR. Report should be submitted to Corporate CSR Group
Up to Rs. 5 lakh in each case L-I
Up to Rs. 2 lakh in each case L-II
Incharge Medical/
Up to Rs. 50,000 in each case
L-III
90. Transportation (air/surface) for patients referred outstation for treatment and for mortal remains
requested by family
L-I/Head of Work
Full Powers
Center
Legal:
91. Power to empanel advocates and arbitrators within India and fix schedule of fees of advocates
Schedule of fees of
advocates will be fixed in
consultation with Finance.
Fees of Arbitrators will be as
Full Powers Director (HR)
per Arbitration Clause
agreed by parties or Rules of
Arbitral institution agreed by
the contracting parties
92. Power to empanel OEC members and to refer a dispute to OEC and to constitute OEC
Full Powers CMD
Note:
i. The following powers are accorded for expeditious processing. These will be supported by MM and
Finance member in the TC (wherever TC is required to be held), except where mentioned.
A. HR Department:
a) I/c HR/ER shall have purchase powers for floating tenders in case of catering, housekeeping and
other general services for value up to 20 lakh in each case.
d) Land acquisition will be handled by LAQ/Estate section as per procedure (Support of MM not
required).
f) Horticulture works shall be handled by Horticulture section. In case horticulture section is not
available at a particular work center, then it shall be handled by the Civil Dept.
B. Logistics Services:
a) Logistics Department shall have purchase powers to award work for hiring of goods, and
passenger transport/handling equipment up to 20 lakh in each case.
C. Engineering Services:
a) Contract services including AMCs, Grass Cutting in GGS/CTF, Plants, etc. up to 20 lakh in each
case may be handled by Engineers under Powers of Engineers.
c) Electrical works pertaining to building construction and all civil works irrespective of value shall be
handled by Civil & Electrical Engineers under Powers of Engineers relating to works and Turnkey
contracts (Support of MM not required).
a) All procurements up to 1 lakh per case can be done by user department directly (Support of MM
not required).
b) Works as defined in integrated MM manual, below 2 crore (except Electrical works pertaining to
d) Any specialized job like consultancy, appointment of auditors, certification agencies, etc. shall be
handled by respective user department up to 50 lakh in each case.
E. MM Department:
a) All other cases which are not specifically defined above shall be dealt by MM.
Notes common for Procurement of Material, Hiring of Services and Award of Work Contracts:
a) Due care has to be taken while proposing the mode of tender so as to get the competitive rates.
c) GRV may also not be required for purchase of materials for special events like seminars,
conferences, training, meetings and sports events provided the item is to be consumed during the
same event and need not be kept in stock.
Term Explanation
AEC Audit & Ethics Committee
AER Authorization for expenditure request
AFE Authorization for Expenditure
AMC Annual Maintenance Contract
APM Administered Price Mechanism
ARB Allied Retail Business
CC Corporate Communications
CCP Corporate Citizenship Policy
CEDC Corporate Exploratory Drilling Centre
CES Chief Engineering Services
CIO Chief of Info-com
CMG Chief Carbon Management
CPA Competent Purchase Authority
CSP Corporate Sports Policy
CVC Central Vigilance Committee
CVO Central Vigilance Officer
DPE Directorate of Public Enterprises
Each case Each Proposal
EC Executive Committee. It consists of full time Directors as members and CMD (Chairman &
Managing Director) as Chairman of the committee.
ECDP East Coast Development Project
EMD Earnest Money Deposit
Emergency Situations include flood, fire, civil disturbances, war, cyclones, blow-out and operational break
down
EPC Executive Purchase Committee. It consists of full time Directors as members and CMD
(Chairman & Managing Director) as Chairman of the committee.
EPC Engineering, procurement and construction
EPCG Export Promotion of Capital Goods
ES Engineering Services
Per Annum Cumulative expenditure sanction power under that head of BDP in a particular financial year
Per Annum Annual expenditure sanction power for individual cases
in each
case
PO Purchase Order
PR Purchase Requisition
Proprietary If that item (Hardware/equipment or Software) is made/developed and marketed by a particular
firm having the exclusive right to manufacture and sell it
RAH Regional Audit Heads
RCC Regional Computer Centre
REL Regional Electronic lab
RTP Refinery Transfer Price
SCADA Supervisory Control and Data Acquisition
SD Security Deposits
SMP School of Maintenance Practices
VAP Value Added Products
VAT Value Added Taxes
VC Virtual Corporate
WC&T Well Completion & Testing
WSS Well Stimulation Services