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OIL AND NATURAL GAS CORPORATION LIMITED

DEPARTMENT OF EMPLOYEE RELATIONS CORPORATE POLICY SECTION TEL BHAVAN : DEHRADUN No.11(19)/02-EP Dated September 17 ,2004

OFFICE ORDER (29/2004) Attention is invited to para 13 of Office Order (6/2000) No. 11(19)/00-EP dated 15.3.2000 regarding revision of pay scales of executives effective from 1.1.1997 for 10 years which stipulated that other issues will be reviewed periodically as per the past practice in ONGC. In view of above, the issue regarding revision of allowances for the executives has been under consideration for sometime past. Now it has been decided to revise the following allowances w.e.f. 1.1.2002 as detailed below : 2. (I) Percentage based Allowances Drilling Allowance:

The payment of Drilling Allowance shall be made at the existing rates after applying the factor of 1.35 on the running basic pay. Further, the revised ceilings of Drilling Allowance shall be as under:Existing Rate Revised Rate For North-East & Sand Dune For Office going For Field going Areas: executives executives 27.5% of basic 27.5% of basic 27.5% of basic pay subject to a pay subject to a pay subject to a max. of Rs.3500/- p.m. max. of Rs.4000/- max. of Rs.4600/p.m. p.m. Normal Areas: 20% of basic pay 20% of basic pay 20% of basic pay subject to a subject to a max. subject to a max. max. of Rs.3100/- p.m. of Rs.3600/- p.m. of Rs.4200/- p.m. Note: For categories of executives who are required to go to fields on requirement basis, the Drilling Allowance shall be paid on pro-rata basis based on attendance. The criteria to determine the Drilling Allowance to field going and office going executives shall be based on their nature of duty as detailed here under:-

a) Office going:i) All those executives who are working at headquarters i.e. Dehradun/ Delhi and different offices in work centres/ Institutes/ Regional Offices etc. Geophysical field party personnel for the period of their stay in the base office during off season.

ii)

b) Field going:i) All offshore executives who are eligible for Offshore Hard Duty Allowance. Those onshore executives whose duty is directly connected with drilling or production in the field and whose duty points are at drill sites, oil field installations and attending duty in shifts and getting Operational Allowance. Geophysical field party personnel for the period of their stay in the field. Those executives who are posted at base office and are required to go to fields on requirement basis ( in view of the fact that the services performed by them are directly related to field activities at various stages of drilling and production operations). The Drilling Allowance in such cases shall be paid on pro-rata basis based on the actual number of days of duty performed in the field in a month. Hard Duty Allowance & Offshore Compensation Allowance: The Hard Duty Allowance & Offshore Compensation Allowance shall be clubbed under the nomenclature of Offshore Hard Duty Allowance and it shall be payable @ 33% of the basic pay after applying the factor of 1.35 on the running basic pay. However, the existing terms and conditions for regulating payment of Hard Duty Allowance and Offshore Compensation shall remain unchanged. (III) Operational Allowance: This allowance shall be payable at the existing rates of 12.5%, 10% & 7.5%, as applicable, after applying the factor of 1.35 on the running basic pay.

ii)

iii)

iv)

(II)

(IV)

Professional Pursuit Allowance: This allowance shall be payable at the existing rate of 2% of Basic Pay after applying the factor of 1.35 on the running basic pay with the maximum ceiling of Rs.600/- p.m. (existing Rs. 450/- p.m.).

3. (I)

Fixed Allowances: Washing Allowance: The revised rates of Washing Allowance shall be as under :Existing Rate Rs.30/Rs.40/Revised Rate Rs.60/Rs.80/-

(II)

Shift Allowance: The revised rates of Shift Allowance shall be as under :-

Description

8 hours shift duty (Rate per 12 hours shift duty (Rate per shift in Rs.) shift in Rs.) Existing Revised Existing Revised 15 25 20 35

General Shift Morning / Evening / Day Shift Night Shift (III)

30

50

45

75

50

85

75

125

Food Compensatory Allowance:

Existing Rate per Shift Rs.50/-

Revised Rate per Shift ( w.e.f. 1.10.2004) Rs.85/-.

(IV)

Nourishment Allowance:

The rate of Nourishment Allowance is revised from Rs.10/- to Rs.25/- per day w.e.f. 1.10.2004. 4. Validity Period:

The aforesaid revision in allowances shall be effective for a period of five years except items No.3(iii) and (iv) above, which shall be effective for a period of four years. 5. In respect of all the above allowances, the eligibility, terms and conditions shall remain unchanged. 6. All other allowances/benefits including various entitlements not specified above shall continue to be regulated and paid as hitherto as per the existing instructions and applicable rates/ceilings etc. 7. The payment of arrears on account of aforesaid revision in allowances shall be made before the ensuing festive season in the month of October, 2004. 8. This issues with the approval of competent authority.

( N.Mani) Chief Manager(P&A)-Corp. Policy Distribution: As per Standard Mailing List.

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