1

SUMMER TRAINING

PROJECT

ON

“LAND ACQUISITION PROCEDURE

IN ONGC”

Submitted By:

Swati Joshi

A REPORT

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ON THE

LAND ACQUISITION PROCEDURE

IN ONGC

Made by: Under the Supervision of:

Swati Joshi Mrs. Ritu Bisht

2nd yr Manager (HR)

SIOM I/C Corporate Estate Section

Pune Tel Bhavan, ONGC, Dehradun

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PREFACE

PREFACE

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At the beginning of this decade with liberalization and globalization of the economy, sweeping changes were witnessed worldwide. With the rapid changes taking place in the technology especially in the information technology, all HR personal have the need to cope with expectation to perform any time, anywhere. They have to constantly upgrade their skills and retain them. In order to keep abreast technological changes, the age of the knowledge employee has arrived. Each employee now wants his role to be wholesome and meaningful with job satisfaction being a primary consideration for performance.

A major HR challenge is to retain highly volatile knowledge employee who has heighten sense of security, self-belief and a corresponding ability for job mobility. If he is not satisfied with his work, he will move on. Employee retention has therefore become a major challenge especially with the specter of better salaries and compensation packages being offered by multinationals.

The process of Land Acquisition thus is of paramount importance to all ONGCians and specially those belonging to HR fraternity. Management of HR in ONGC is a very big exercise and comprises wide range of activities i.e. employee retention etc. and its ultimate goal is HR development of the organization.

As a tool of human resource helps in providing accurate and timely evaluation of the capabilities of an organization’s current human resources with a forward look towards future needs.

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ACKNOWLEGEMENT

ACKNOWLEDGEMENT

It is a pleasant duty to acknowledge the valuable help I received from my mentor in the completion of my project.

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I would like to express my deep sense of gratitude to my mentor Mrs.Ritu Bisht, the Manager (HR) I/C Corporate Estate Section, Tel Bhavan, Dehradun.

I have immense pleasure in expressing my wholehearted gratitude to her for providing help and guidance in the course of project. I really want to thank her for the encouragement given by her to me during the whole of my training session.

I m also thankful to ONGC for providing me the opportunity to complete my project in their Organization and also thankful to the employees who helped me in completing my project successfully.

Swati Joshi

2nd year

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DECLARATION

DECLARATION

I Swati Joshi, hereby declare that the project work entitled, “Land Acquisition Procedure in ONGC” is a bonafide record of the original work carried out by me at ONGC, under the guidance of Mrs. Ritu Bisht, Manager(HR), from 06.06.2010 to 20.07.2010 towards partial fulfillment for the award of degree in Management in Business Administration for Pune University and this project work has not formed a basis for the award of degree/diploma/fellowship or similar title to any

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similar candidate of any University. According to me, each and every information is correct.

Date: Signature:

Place: Dehradun (Swati Joshi)

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project report titled” Land Acquisition Procedure in ONGC” is the bonafide work of Swati Joshi, student of Sinhgad Institute of Management, who has completed her Summer Training with us, from 06 June 2011 to 20Th July 2011.

Certified further that to the best of the knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was earlier conferred on to any other candidate.

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During this training period, her work and behavior was satisfactory.

We wish her all the best for her future career.

CONTENTS

SI. No. Particulars PAGE No.

1.

2.

Executive Summary

CHAPTER1. ORGANIZATIONAL PROFILE HR at ONGC ONGC Vision & Mission ONGC Institutions ONGC offices

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17182223

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3. CHAPTER2. ABOUT THE TOPIC Land Acquisition LAQ Activities LAQ Process LAQ Partners Criteria of LAQ Kinds of LAQ Payment of Rental and Crop

Compensation Surrender of Land LAQ Act Right of User LAQ setup and facilities Documentation Process

24273032363955

5864697275

4. CHAPTER3. CONCLUSION 77

5. CHAPTER4.SUGGESTIONS 79

6. CHAPTER5. GLOSSARY 81

7. BIBLIOGRAPHY 83

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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

I have been given an opportunity to do my summer training in a prestigious and reputed organization i.e. OIL AND NATURAL GAS CORPORATION. This has been a strong valuable Public Sector Company in our country, India.

The tenure of my summer training has been a continuous training process that has enabled me to understand the intricacies of the whole process of Land Acquisition procedure in ONGC.

The project title “Land Acquisition Procedure in ONGC” is a comprehensive study and a research carried out by me to the best of my ability so as to have an insight to the processes involved in Acquisition of various types of lands and the difficulties flowing out of the same. The study also focuses on land

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requirement for ONGC’s exploration and exploitation programme for the purpose of drilling and production activities.

Thus the study certainly is of much importance for the company to undertake an attempt to incorporate benchmarks for each LAQ activity, so as to be in line with the competitive forces, operational in the oil business. The process of Land Acquisition thus is of paramount importance to all ONGCians and specially those belonging to HR fraternity.

However the whole process was learning experience in the corporate world.

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ONGC PROFILE

ONGC- AN INTERNATIONAL E&P COMPANY

OIL AND NATURAL GAS CORPORATION LIMITED

Type = PSU

Founded = 1956

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Headquarters = Dehradun, India

Chairman and MD = Radhey S Sharma,

Industry = Petroleum and Gas

Employees = 34,000

ONGC

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“Not only had India… set up her own machinery for oil exploration and exploitation… an efficient oil commission had been built where a large number of bright young men and women had been trained and to do hard work.”

Pandit Jawaharlal Nehru

India’s First Prime Minister

Oil and Natural Gas Corporation Ltd. (ONGC) is Flagship Company of India. It is recognized as the Numero Uno E&P Company in the world. It is the most valuable Public Sector Company in India, with a Market Capitalization of around 40 billion dollars. It is the highest profit making company and highest dividend payer in India. It has a dedicated team of nearly 33, 000 professionals who toil round the clock. It is this toil which amply reflects in aspirations and performances figures of ONGC.

ONGC has unique distinction of being a company with in-house service capabilities in all the activity areas of exploration and production of oil and gas and related oil field services. ONGC is the first Indian Company to adopt ‘Integrity Pact’ to institutionalize transparcy in its procurement and public transactions.

ONGC’s wholly- owned subsidiary ONGC Videsh Ltd. (OVL) is the biggest Indian multinational, with 39 Oil & Gas projects in 17 countries.

Over 18,000 technically competent experienced scientists and engineers, mostly from distinguished Universities/ Institutions of India and abroad form core of the executive profile.

16HR IN ONGC

HR policies are the prime mover for the optimum utilization and contribution by human resources and also for their morale and motivation in any organization. HR policies require continuous review and updation. It has become more and more important now because of fast changing trends in the HR management. Changing economic and organizational scenario in ONGC has thrown a challenge for HR Professionals to respond quickly and appropriately to meet employees’ aspirations to keep them highly motivated on the one hand and ensuring that organizational goals are achieved.

In order to equip HR professionals to take quick decisions on first time right and first thing first principle a sound and dynamic HR policy platform is inevitable. Towards this objective, the HR manual” Human Resource Management in ONGC” containing a gist of all the rules, regulations and policies governing the functioning of personal and administration was published in 1998.

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VISION

To be a world class Oil and Gas Company integrated in Energy business with dominant Indian Leadership and global presence.

STRATEGIC VISION: 2001-2020

Focusing on core business of E &P, ONGC has set strategic objectives of:

Doubling reserve (i.e. accreting 6 billion tones of O + OEG) by 2020, out of these 4 billion tones are targeted from the deep waters.

Improving average recovery from 28% to 40%. Tie-up 20 MMTPA of equity Hydrocarbon from abroad. The focus of management will be to monetize the assets as well as to

assetise the money.

MISSION

Dedicated to excellence by leveraging competitive advantage in Research and Development and Technology with involved people.

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Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for our people.

Make working a stimulating and challenging experience for our people. Strive for customer delight towards through quality product and services. Abiding commitment to safety, health and environment to enrich quality of

community life.

INTEGRATED IN ENERGY BUSINESS

Provide value linkages in other sectors of energy Business. Create growth opportunities and maximize shareholder value.

DOMINANT INDIAN LEADERSHIP

Retain dominant position in Indian petroleum sector and enhances India energy availability.

ONGC OBJECTIVES

Optimize production of hydrocarbons. Self reliance of technology. Promoting indigenous efforts in Oil and Gas related Equipment, materials and services.

Environment protection. Generate adequate resources for reinvestment. Develop scientifically oriented and technically component HR through

motivation and training.

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The projects situated at different places in India are called as Assets, which are known as units for the purpose of accounts and production activities and targets. Mainly the following are the major oil and gas producing Assets of ONGC:

• Mehsana Asset

• Ahmedabad Asset

• Ankleshwar Asset

• Mumbai Asset

• Neelam & Heera Asset

• Bassain& Satellite Asset

• Cauvary Asset

• Rajamundry Asset

• Tripura Asset

• Assam Asset

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Apart from the above, few locations are known as Basins mainly responsible for exploration activities of finding hydrocarbons. These are:

• Assam and Assam Arakan Basin, Jorhat

• KG Basin Rajahmundry &Kauvery Basin, Karaikal

• Cachar Forward Base

• Cambay Forward Base

• Frontier Basin, Dehradun

There are two plants, which work for the separation of gas and production of aviation fuel etc. The two plants in ONGC are as following:

• Hazira Plant

• URAN Plant

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LIST OF INSTITUTES

GEOPIC : Geo data processing and interpretation

IDT : Institute of Drilling Technology

IRS : Institute of Reservoir Studies

IEOT : Institute of engineering and Ocean technology

OA : ONGC Academy

INBIGS : Institute of Biotechnology and Geotectonic Studies.

IOGPT : Institute of Oil and Gas Production Technology.

IPSHEM : Institute of Petroleum Safety, Health and Environment Management

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ONGC OFFICE

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LAND ACQUISITION

LAND ACQUISITION

Land is a basic requirement for the exploration and exploitation of hydrocarbon and is the first step for any operational activity of ONGC.The availability of land being limited; various laws are being enhanced by states, to ensure that agricultural land is not disturbed while undertaking industrial activity. Understanding the process of Land Acquisition thus is of paramount importance to all ONGCians and specially those belonging to HR fraternity. Since, the land owners have emotional attachments with their land, it is necessary to handle

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them in a professional manner, with fairness and sensitivity, so that both the parties have win-win situation.

ONGC’s exploration and exploitation programmers is land intensive to such an extent that the requirement of land is continuous and production activities, as new fields/areas are constantly discovered, with the advent of new technology. In view of current practices of land acquisition in different work centers, which obviously cannot be uniform, being dependent on the regulations of different State Governments and the Geo-political situation prevailing there in, the best practices which can act as guiding factor in all work centers in ONGC have been spelt out. An attempt has also been made to incorporate benchmarks for each LAQ activity, so as to be in line with the competitive forces, operational in the oil business.

LAQ VISION

“Ensure timely availability of land for initiating Operational Activities, as a business partner, in pursuit of uninterrupted operations”

LAQ MISSION

Acquire land as per customer’s (Sub Surface/Basin) requirement. Provide support to operations right from identification of land, to

production of hydrocarbons. Providing ROU for laying pipelines for oil/gas transportation.

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Maintain proper Ownership/Land Records. Accurate and timely due payments to Farmers. Promoting ONGC’s image, as a “Company that cares”.

LAND ACQUISITION ACTIVITIES

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LAND ACQUISITION

ACTIVITIES

1. Main Activity: Providing land for Drill Sites/Installations on

temporary/permanent basis. Conduct direct negotiations with the land owners for

acquiring land under the 33 years lease system.

OTHER IMPORTANT ACTIVITIES

MAIN ACTIVITY

SUPPORTING ACTIVITY

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Payment of Land Rentals for land taken on temporary basis.

ROU for Truck Pipelines. Crop Compensation for Flow Lines. Documentation and upkeep of land records.

2.Supporting Activity: Resolving Pollution Compensation cases at Drill Sites. Land Damage compensation. Environment Management during blow out, along with

Disaster Management Group. Coordinating for issue of No objection Certificates in

PEL/ML areas.

3. Other important activities: Conversion of Temporary Land to Permanent. Surrender of Temporary Land. Mechanism for handling Permanent Land, no longer

required for ONGC Operations. Facilitating Negotiations in cases of stoppage of Work.

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LAND ACQUISITION PROCESS

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LAND ACQUISITION PROCESS

SST/FORWARD BASE CIVIL

STAKING OF DRILL SITE

CIVIL SECTION

COLLECTS VILLAGE MAP DEMARCATES AREA TO BE

ACQUIRED SENDS PROPOSAL

LAQ SECTION

COLLECTS 7/12 RECORDS

SCRUTINISE THE PROPOSAL

PRIORITY AS PER RIG MOVT. PLAN

THROUGH REVENUE

J M ALONG WITH LAQ SURVEYOR PERMISSION FROM REV

DEPARTMENT ACQUISITION IF FARMERS AGREE POSSESSION THROUGH EX-

MAGISTRATE IF FARMERS DO NOT AGREE

AWARD IN FAVOR OF ONGC

DIRECTLY BY ONGC

CONSENT FROM LAND OWNERS

FORMATION OF BOARD

NEGOTIATIONS & ACQUISITION

SUCCESSFUL

YES

NO

LAND HANDED OVER TO CIVIL FOR CONSTRUCTION PROPOSAL BY LAQ SECTION

COLLECTS 7/12 RECORDS LAO APPLIES FOR TAX

EXEMPTION FORWARDS TO REVENUE FOR PERMANENT ACQUISITION

DRILLING BY DS

STATUS OF WELL

DRYPRODUCING

ACQUIRE PERMANENTLY

TO BE RESTORED

CIVIL PREPARES RESTORATION ESTIMATE AS PER SOR AND

SENDS TO LAQ

REVENUE ACQUIRES LAND & DEMANDS COST OF LAND

SCRUTINY BY LAQ FORMATION OF BOARD VISIT TO THE SITE AND

CONTACT WITH FARMERS NEGOTIATION PAYMENT FOR

RESTORATION

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LAND ACQUISITION PARTNERS

LAQ BUSINESS PARTNERS

External Partners

Internal Partners

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LAQ External Partners:

Collector’s officers

o Fariyad Diwas/ Monitoring Meeting/ Gram Sabha

DILR (District Inspector of Land Records)

o Revenue/ Land records

SPLAO/ SDC/ DLAO (ONGC)

o Temporary/ Permanent Acquisition / Temporary Abandonmento Permanent Abandonmento Co-ordinating land reference cases/ court cases

Mamlatdar/ MRO/ Talati/ Karamchari/ CO

o Land recordso Identification of farmer

Land Revenue Authority

o Notification U/S 4o Declaration of public purpose U/S 6

Other Groups

o A localo A local architectural firmo Farmers/ sarpanches

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o Representative of farmers association

District court/ high court

LAQ Internal Partners

Forward Base: Handling of location, information on drilling plan, notice of abandonment.

Sub Surface Team: Handling of location, information on drilling plan, requisition to make site permanent, notice of abandonment.

Civil: Provides proposal for site, works out restoration cost, helps in working out compensation relating to structures on site.

Surface Team: Is the owner of asset like pipeline, member of in-house crop compensation team, timely information of damage etc. in case of pipeline leakage.

Drilling/ Well Services: Timely and detailed information regarding work stoppages. Ensuring safety and environmental standards during operations without any damage to land/ agriculture.

Legal: Provides legal opinion, follows court cases in District, high court & Supreme Court.

Security: Provide support in cases of law & order situation & illegal encroachment issues.

HSE: To undertake safety audit periodically & control pollution related damages, thereby helping in promoting company’s green image in the company.

Finance: Makes Payment, member of MCT team, member of in-house negotiating committee for determining crop/ damage compensation at drill site. Members of in-house negotiating committee for determining crop compensation relating to pipelines.

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CRITERIA FOR LAND REQUIREMENT

CRITERIA FOR LAND REQUIREMENT

The dimension of land for drill site: Drill site accommodation if required shall be decided by SSM in consultation with drilling services of the Asset depending upon the type of Rig and communication specifically to LAQ department which shall make land available accordingly.

Handling of un-economical land holding: Sometimes the owner of the land may not be in the position to cultivate his remaining portion of the land due to various factors. In such cases, the Land Acquisition Section can acquire the uneconomical portion (UEP) to mitigate the hardship faced by the land owners.

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Diversion/Maintenance of water channels: While acquiring land for diversion channel it will be the responsibility of the Civil Section to ensure free flow of water. It is the responsibility of the Rig manager to ensure that no oil or chemical wastes are let out and the free flow of diversion channel is not affected during the operations. If any disruption is noticed or caused he shall immediately inform the Civil Section in writing for taking prompt remedial measures.

Approach road width to be need: The land required for the approach roads to the drill site are also acquiredWith varying widths in different areas/Regions. Even though the final width of the road is 6-7 meters, the land acquired varies from 10-20meters.The extra land is acquired presumably to raise the level of the road.

Land requirement to be minimum: Use of excess land not only involves additional cost but also affects the individual farmers and gross productivity. The Government of West Bengal stated that “the acquiring body should give a declaration to the effect that the land assessed for the requirement of the project is not in excess of the rational requirement for the project”.

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KINDS OF LAND ACQUISITION

39KINDS OF ACQUISITION OF LAND

Temporary occupation of land for drill sites/approach roads:

a) Through Revenue Authoritiesb) Directly By ONGCc) Forest Landd) Government Lande) 33- Year Lease System

A.Through Revenue authorities:

TEMPORARY PERMANENT

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Revenue authorities are normally resorted to, when ONGC is not in a position to acquire land directly from the land owners. The proposal for the acquisition of land is prepared by the Civil Section and forwarded to LAQ through Basin/SST.

The proposal for the acquisition of land should invariably contain the following details:

I. Copy of the approval of competent authority to acquire the land.II. Staking report with date of release of location.

III. Survey Nos. /Block Nos. duly depicted on the village Map for the land to be acquired.

IV. A certificate indicating that the area has been demarcated on ground with stones grouted at the interval of 50 meters.

Process of acquiring land through Revenue department for D/S/Installation

Activity Responsibility Suggested time frameProposal making LAQ 20 daysProposal to SPLAO LAQ 15 daysProposal to Govt. SPLAO 30 daysApproval by Govt. Revenue dept 30 daysNotice to farmers SPLAO 15 daysHearing/Complaints SPLAO 10 daysTOTAL TIME 120 DAYS

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B.Directly by ONGC: Since, the temporary occupation by the revenue authorities takes time; the lands urgently required are occupied by ONGC after getting the consent of the land owners, directly through an in-house Negotiating Committee with representatives not below E.4 level officers from Asset/Basin/Finance.The quantum of compensation payable is assessed by a Departmental Committee consisting of the following officers not below the rank of E.4 level from:

I. P&A-LAQII. Finance & Accounts

III. Civil Engineering(from E & C under CRC) andIV. SST/ST/Forward Base.

Detail Process of Land Acquisition for D/Site

Activity Responsibility Suggested Time Frame

Release of Location Basin/SST Start DateStacking F/B, SST 05 daysProposal showing Area Civil 10 daysConsent of farmers LAQ 05 daysConsent of D.S.W officer. If owner SC/ST

LAQ 10 days

Land Records(DILR) LAQ 03 daysSurvey/Measurement LAQ 04 daysCrop Compensation Board

LAQ/Fin/civil/FB or SST

03 days

Board proceedings DO 02 daysSanction Under CA-1(a) for Crop Comp.

I/C HR/ER L-1 6-10 days

Concurrence/BR No. 01 dayPreparation of bill LAQ 02 days

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Preparation of cheque farmer wise

Finance 03 days

Cheque Delivery at site LAQ 03 daysLetter to civil LAQ 02 daysTotal Days(without stopover)

Approx. 3 months 59 /days

Processing case for Rentals/Approval I/C ER/HR

15 days 74 days

C.Forest Land: On receipt of the order regarding release of location by the Basin/Asset respectively, land Acquisition (LAQ) Section shall carry out the following procedure:

I. Staking of location, survey and collection of revenue map and land records from the Circle Office concerned.

II. Joint inspection with the District revenue Authority and the preparation of site plan.

III. Submission of proposal for acquisition of land to the Divisional forest Officer (DFO).

IV. Joint spot verification of the area along with forest officials and enumeration of ZIRAT.

V. Divisional Forest Officer forwards the proposal to the Nodal Officer of the State Government. The proposal is thereafter forwarded to the office of the Conservator of Forests, located at Shillong through Secretary of the State Government, for approving diversion of forest land for the operational use of ONGC.

VI. Ensuring close and continuous monitoring and liaison with the various authorities to ensure that the process gets expedited.

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Financial Implication to be borne by ONGC Net Present Value(NPV):

ONGC is required to pay NPV to the State Government at the rate decided by the appropriate authority depending upon the quantity and density of the forest in question, the assessment of which is to be made by the forest Department of the State Government. This rate is subject to upward revision by the Ministry of Environment & Forests, Govt. of India in consultation with the central empowered committee.

Cost of compensatory Aforestation:ONGC is required to pay to the State Government cost of Compensatory Aforestation which is equal to double the value of the trees present in the area being acquired, as at the time of acquisition. Assessment of cost is to be made by the State Government.

Cost of forest Produce:ONGC is also liable to pay the cost of timber/forest produce present in the area in question, as assessed by the State Government.

Other Administrative Charges:In addition to the above, ONGC is also required to pay administrative and the other charges as calculated and stated by the State Government in their demand notice, to be furnished by the Forest department.

D.Government Land:

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If the land belonging to the State /Central Government is required for drilling purposes, an application is to be drafted and addressed to the appropriate authority. The proposal shall contain the details in regard to the area, map, orientation etc. Normally allotment by government takes about 1-2 years. However, the entry to the government land before obtaining permission shall be restricted to the barest minimum and only in the case of utmost urgent operational exigencies and matter may be constantly pursued for grant of permission.

E. 33-Year lease system: ONGC had been facing problem in acquiring land for its operational use in Eastern Region through the Permanent Land Acquisition System due to the inordinate procedural delays on the part of Revenue Department of Government of Assam in releasing land compensation deposited in advance by ONGC, to land owners. A suggestion was, therefore made by the ONGC to the state Government of Assam to grant permission for acquiring land through direct negotiations with the land owners under the provision of PEL/ML Rules, which was agreed in principle by the State Government in a meeting held on 19/9/1994. The system of acquisition of land in Eastern Region, for operational use, under 33 Years Lease System was introduced with effect from 27/10/1995 with the approval of the EC/PPMC.

Financial Implication to be borne by ONGC Lease Value:

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ONGC shall pay to the land owners, Lease Value at the rates fixed by the Eastern region, ONGC for acquisition of the land under the 33 Year Lease System. The present rates per bigha, fixed for land located in urban, semi-urban, and rural areas are Rs. 2.50 lakhs, Rs.1.50lakhs and Rs.0.675 lakhs respectively.

Rehabilitation Cost:This is payable to the land owners at the rate of thirty percent of lease value.

Cost of surface Damage:This is payable to the land owners only in cases where there are trees, vegetation or standing crops at the time of acquisition of land by ONGC. The rates payable for the different type of trees, vegetation and crops as well as pisciculture are based on the rates fixed by the District Revenue Authorities.

Cost of Non- Judicial Stamp Paper and Registration Fees:ONGC shall bear the cost of Non-judicial stamp paper and registration fees for execution of lease deed with the land owners. The stamp duty and registration fees shall be based on the rates prescribed under the Indian Registration Act, 1908.On receipt of exploratory/development location released by basin respectively. Land acquisition section shall carry out the following procedures.

i. Staking of location and land survey of the site and approach.

ii. Collection of revenue map and land records from the circle civil office concerned and identification of actual land owners.

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iii. Preparation of site plan and getting the same vetted by Geology, Civil Engineering and drill section.

iv. Enumeration of zirat, if any assessment of surface damage.

v. Obtaining permission from the district administration for execution of lease deed and finalization of lease deed.

vi. Signing of lease deed with the land owners in the presence of sub register of state government and making payment of lease value.

Advantages of the systemThe total average time consumed for acquisition of land under the 33 Year Lease System is around 120 days which enables ONGC to acquire land quickly, to meet its operational requirements. Since payment is directly released by ONGC, the land owners are benefited by faster receipt of land compensation, which encourages land owners to come forward and provide their lands to ONGC.

Permanent Acquisition of Land:a) Process of converting land on temporary occupation to permanent

acquisition.b) Process of consent award U/S 11(2).c) Direct negotiations process adopted in Tamil Nadu.

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A.Process of converting land on temporary occupation to permanent acquisition. Permanent Acquisition of land for any operational purpose of ONGC

shall be submitted by SSM/SM to LAQ. Permanent Acquisition Proposal for Drill Site:

The land acquired on temporary basis is to be made permanent in respect of wells declared producers as soon as the SST communities the same to Land Acquisition Section for acquiring the land on a permanent basis. However, LAQ will put the list of lands occupied on temporary basis, periodically, at least once a year, to SST for confirmation of the lands that are required to be made permanent. Based on the confirmation provided by SST, LAQ will initiate proposals for permanent acquisition and submit to SPLAO.

Permanent Acquisition Proposal for installations.It is the responsibility of the surface manager to give the requirement of land for various production installations/flare points etc. to be acquired on permanent basis. Care should be taken to acquire minimum required land after taking into consideration future development. In case of urgency where land is initially taken on temporary basis, the LAQ section should initiate the case for making it permanent in consultation with SM at the earliest.

LAQ section prepares a proposal for permanent acquisition and submits to SPLAO who will scrutinize the proposal and send the same to respective District Collector for publication of notification under section 4(1) of the Act.

On publication of the Notification, Dy. Collector shall conduct the enquiry under section -5A of the Act, and issue necessary declaration under the section-6 of the Act to the collector/revenue authority for publication within one year from the date of notification.

Under Section 9 of the LA Act value of the land is arrived by the SPLAO based on the bonafide transaction of sales occurred during

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the minimum number of years required as per the Stamp duty Act fixed by the State Government.

Conversion of Temporary Land to Permanent by SPLAO

Activity Responsibility Suggested Time Frame

Confirmation regarding permanent need

SST/FB START TIME

Officer dealing to open file for permanent proposal

LAQ 3 days

Surveyor to collect, 7/12, 8-A, Caste certificate namuna

LLAQ 20 days

Proposal put up to I/C LAQ containing

Mgr(LAQ) 4 days

Land Plan/schedule/questionnaire/ 19 questions/ demarcation/ agreement form ONGC & government

I/C LAQ 3 days

Upto SPLAO total completion time

Total 30 days

Scrutiny of proposal SPLAO 7 daysJt. Measurement Surveyor 30 daysAmendment, SPLAO 10 daysProposal preparation SPLAO 8 daysClearance by government Revenue

department60 days

Notice 4-A in local newspaper

SPLAO 40 days

Notice period Statutory 30 daysDeclaration u/s 6 Statutory 90 daysQuery/complaint SPLAO 10 daysNotice to interested persons u/s

SPLAO 30 days

Taking of names of interested persons in land

SPLAO 30 days

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u/s 10Notice/dealing with objections if any

SPLAO 40 days

Approval from government Statutory 30 daysAward 25 daysKJP Revenue dept 30 daysUpdate of records by Mamlatdar

Revenue dept 60 days

Total Times(upto award) 560 days

C) Process of consent award U/S 11(2):

On the day so fixed, or on any other day to which the enquiry has been adjourned, the Collector shall proceed to enquire into the objections which any person interested has stated pursuant to a notice given under section 9 to the measurement made under section 8 and into the value of the land and into the respective interests of the persons claiming the compensation, and shall make an award under his hand of:o The true area of the lando The compensation which in his opinion should be allowed for

the land; and,o The apportionment of the said compensation among all the

persons known or believed to be interested in the land, of

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whom, or of whose claim, he has information, whether or not they have respectively appeared before him.

Notwithstanding anything contained in sub-section 11(1) if at any stage of the proceedings, the Collector is satisfied that all the persons interested in the land who appear before him are agreeable to the award which he proposes to make under this section, the Collector may without making further enquiry, make an award according to the terms of such agreement. In consent award all parties agree to the compensation and execution of an agreement. In such cases the land owners cannot make reference to Court.

Conversion of Temporary land to Permanent by Revenue Department, through CONSENT AWARD

Activity Responsibility Suggested Time FrameTotal time taken to fulfill requirement of notices

LAQ/SPLAO/Revenue department

560 days

Meeting and negotiations SPLAO 30 daysSignatures on consent papers

SPLAO 30 days

Total Time 620 days

As per the land acquisition act 1894, the process of permanent acquisition should be completed within two years from date of declaration U/S 6. Thus, the act provides a period of three years, for completing the process, from the date of notification U/S 4 of the Act.

D) Direct Negotiations adopted in Tamil Nadu

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As the process of permanent land acquisition is dragging on for more than two years the Government of Tamil Nadu has evolved acquisition through direct negotiations. As per this, both the processes of acquisition shall commence simultaneously. The Committee is headed by the District Collector as Chairman and District Revenue Officer as Secretary, Dy. Inspector General of Registration Department and the Executive Engineer (PWD) as member who shall conduct direct negotiations with the land owners and the officials of the user Department. When the negotiated rate is within 150% of Guidelines value (GLV), the Committee is empowered to approve the rate and give their nod for registration of document in favor of user department (ONGC). If the any negotiated rate is higher than 50% of the land value, a report has to be sent to government seeking approval. On approval by government the lands are registered in favor of the requisitioning department. The acquisition procedure will however continue under the LA Act in case of failure of negotiations.In direct negotiations process the time involved is reduced and reference to Court of Law is totally avoided. If this system may be introduced in all other States, if not already available. Then this is the best suited process. The land for the operational activities taken on lease basis in Nagapattium, Tiruvarur, Tanjavur, and Cuddalore Districts is classified as “Wet Lands”. The government of Tamil Nadu issued Order No. GO (Misc) No. 395 dated 23/06/1994

The Main Provisions of The Same Are Listed Below:

a. Normally the land in which food crops are cultivated should not be acquired for the purposes of Housing Scheme. Harijan Welfare Schemes are also for other purposes.

b. These lands can be acquired only in unavoidable circumstances and as a last resort.

c. Acquisition of wet lands should be avoided to the maximum extent possible even though it belongs to small or big farmers.

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d. As the land has to be saved for food production purpose, for acquisition of land for government of the following priority should be followed.

i. Rain fed dryii. Irrigated dryiii. Wet

e. After selection of the site, for the selected site and for the area, administrated approval should be obtained from the concerned department through Commissioner of Land Administration for acquiring the lands under Land Acquisition Act or for private negotiation.In view of the government ordered dated 26/06/1994. Mentioned above, wet land can be acquired only with the prior approval of the Government of Tamil Nadu.

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PAYMENT OF CROP COMPENSATION

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PAYMENT OF RENTAL AND CROP COMPENSATION

It is the primary duty of the land acquisition section to make payment to the land owners in time. Disbursements of cheques are to be handled by the LAQ section, where Finance is not geared up for taking up this responsibility, as this activity requires timely dispatch of cheques to the right persons. In places like Rajahmundry, cheques are dispatched by Finance.

In case of temporary occupation of lands for drilling activity the compensation is required to be paid for the following:o Initial compensation for standing crops/trees/super

structures/boundary fences.o Periodical annual rental compensation, for temporary

occupation till the land is with the ONGC. Land Acquisition Section shall prepare the sub division sketches

immediately after measurement of the land and identify the land owners with the help of the village administration officer/sarpanch.

Whenever ONGC in consultation with the land owner is leasing out site to the third party for storing of materials lease rent shall be recovered from the third party.

For the land acquired on temporary basis, the lease rent is to be paid annually. The rent is fixed by the committee, which comprises of representatives from ONGC, District Administration and the farmers and approved by ONGC. Generally the rent is fixed for a period of three years.

In Cauvery Asset, the lease amount is based on the crops cultivated and the same is fixed by the District Collector, every three years. In case of non- irrigated land, the rental is fixed by the district collector. Village otherwise.

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The rent is paid to the land owners to compensate the revenue they might have earned through cultivation. Hence while fixing the rent the cost of the agricultural goods produced and the cost of production is taken in to account.

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ABANDONMENT OF LAND

ABANDONMENT/ SURRENDER OF LAND

A. Process of abandonmentB. Process of surrender of land by Revenue authoritiesC. Process of surrender of land by ONGC directlyD. Disposal of permanent acquired land not in use

a) Process of Abandonment:When any well is declared as dry DS/SST will ensure that the same is cemented/ plated to ensure safety as per the abandonment procedures. The rig release order shall clearly indicate the same accompanied by orders to LAQ to surrender the land. This has to be decided within three years from the time of temporary acquisition in terms of LA act. It is

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desirable that the total land should be surrendered or retained with the approval of SST/ST/ Forward base.

b) Abandonment of temporary acquired land by revenue authorities:In cases where the lands are initially acquired on temporary basis through SPLAO, the concerned Revenue Department will be provided with the restoration charges as per current SOR provided by civil section. The additional restoration cost shall be paid for the following items:

Waste pit; Cellar pit/drill point foundation; Fire fighting tanks; Drill site hardened area Flare pits; Security huts/sheds

SPLAO will seek approval from the state government for restoration and on approval from the government passes an award for restoration.

Provided that, if the land has become permanently unfit to be used for the purpose for which it was used immediately before the commencement of such term, and if the persons interested shall so acquire, the appropriate government shall proceed under LA Act to acquire the land as if it was needed permanently for a public purpose for a company.

Rental Payment in Restoration Cases: In both cases, annual rent to be paid till land is restored. Rent is paid for a period of three months beyond the date of payment restoration charges so as to enable the farmers to get it restored.

Process of abandonment of temporary land taken through revenue:

Activity Responsibility Suggested time period

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SST/FB to inform of abandonment

SST/FB Time Starts

Proposal to civil for restoration charges as per SOR

LAQ 5 days

Restoration charges Civil 15 daysProposal to SPLAO/SDC/ possession surrender receipt

LAQ 3/15

SPLAO hearing/Rest

SPLAO/SDC/DLAO 30

LAQ to make proposal for sanction

LAQ 3

I/C-LAQ,I/C-HR,I/C-FIN/ASM/L-1

Concerned Authority 10

BR no/FA no Fin 3Bill preparation LAQ 3Cheque preparation Fin 5Cheque collection sending to SPLAO

LAQ 1+5

Total Time 79 days

c) Process of surrender of land by ONGC Directly:For commencing restoration work, land acquisition section requires the following documents:

From Basin/ SST: Rig release order indicating the status of well as abandonment with no future utility, with a specific request to surrender land.

From Civil: The details of restoration charges indicating quantities, measurements etc. for civil works completed in each survey number separately for each land owner to avoid disputes in payments with reference to current SOR. Certificate regarding restoration of

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irrigation channels, if initially diverted, to its original position ensuring free flow of water for irrigation.

From Drilling/ Well Services: Certificate indicating that all the materials/ waste oil/ chemicals/ sludge have been removed from the site to be restored.

Process for abandonment of temporary land taken through Revenue

Activity Responsibility Suggested Time Frame

Information regarding abandonment

From SST/f base Start time

Intimation to civil for SOR charges & receipt

Civil 15 days

Visit of restoration teamBDP CA – 2 consent reg. return, area, amount & sig. of acceptance

Civil/FB/SST/FIN, LAQ 2O days

Proceeding of Res. Board

LAQ & Board Members 3 days

Checking and proposal & approval

LAQ I/C LAQ

2 days2 days

Approval Under CA-2Up to- nilUp to- nilUp to-full powers

I/C ER/HRASML-1

2 days2 days2 days

B/R no Fin 3 daysPreparation of bill LAQ 1 dayPreparation of cheque Fin 3 daysDistribution of cheque LAQ 7-10 daysTotal Time 65 days

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d) Disposal of Permanently acquired land not required by ONGCLand permanently acquired by ONGC for drill sites and approach road, whenever abandonment by SST, is of no use to ONGC and is a non- performing asset. All such sites which are not required in future as well, needs to be intimated to LAQ, which shall make all out efforts in the direction of liquidation of such land/ asset. Since land acquired through LA Act can be disposed off only through SPLAO, LAQ Department should make all out efforts to hasten the process. Procedure prescribed in this regard in Andhra Pradesh Land Acquisition Manual is given overleaf:

Restoration of Land by ONGC through Contractor as a alternative Mechanism:Presently land is returned back to the landowner by payment of Restoration charges worked out by civil department based on SOR. Keeping in view the environment aspects effort needs to be put to establish a mechanism for bringing the land in original condition in future.This would involve undoing the constructions made and bringing back the land fit for the cultivation, if it was cultivable at the time of taking over of the land.Thus efforts need to be undertaken for setting up a system of documentation in the following areas:

Condition of land at the time of taking the land on rental basis. Details/ measurement of the type of construction etc.

undertaken by ONGC on the said land for operational purposes.

Working out restoration cost as per SOR to act as a basis for undertaking restoration.

Estimation of Salvage value if applicable.

Once the above is put in place, LAQ will take the consent/ option of the farmer whether he is keen on the restoration of land being undertaken by ONGC or would like to accept payment in lieu

thereof and get it done by himself. Based on the option so exercised, the civil department will be requested to undertake the restoration work through contractor, which will be in fulfillment of ONGC’s obligation under section 36(2) of L.A Act. In order to avoid delays it is suggested that respective civil departments may set up a proper contract mechanism to undertake such activity in future.

LAND ACQUISITION ACT

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“Land Acquisition Procedure followed by ONGC is as per the LAND ACQUISITION ACT, 1894”

LAND ACQUISITION ACT 1894

The Land Acquisition Act 1894 confers the right on the appropriate government to acquire land and to have rational determination of the compensation to be paid to the owner. The Act provides for taking of land by the collector by making an award against which the land owner has the opportunity to go to the court under the Land Revenue U/S 18 of the Act, which is mandatory imposed on the collector.

Some of the important provisions of Land Acquisition Act are summarized up here under for making it clear to the officer dealing with Land Acquisition matters. The important provisions are:

Section 3(f)-Public Purpose: This include planned development of villages, land for town or rural planning, land for planned development of land from public fund in pursuance of any scheme of government or for provision of land for a corporation owned or controlled by the state.

Section 4-Publication of preliminary notification and powers of officers thereon: It provides that if the land is required for any public purpose, a notification in an official gazette shall be published in two daily newspapers, of which one shall be in a regional language. Once the notification is published, it becomes lawful for the officer to enter upon and

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survey. However the minimum of seven days of writing is to be given in advance to the occupier of the land.

Section 5(a)-Hearing of Objections: The owner of the land which has been notified, Under Section 4, as acquired for public purposes can within 30 days from the date of publication submit his objection to the Collector or his representative in writing.

Section 6-Declaration that land is required for public purpose: The said declaration is made by the Secretary to Government or his authorized representative, within a period of one year from the date of publication, and is published in two daily newspapers. In addition, public notices at convenient places in the locality are also fixed. This declaration is considered as conclusive evidence that the land is needed for a public purpose or for a company.

Section 9-Notice to persons interested: The collector shall give public notice stating the government intense to taking possession of the land. The objection of section 9 is basically to ascertain, the persons interested in the land possessed to be acquired and the extent of their interested are affected. This provides them an opportunity to claim for compensation proportionate their interest including the measurement of land done by the collector under section 8.

Section 11-Inquire and Award by the Collector: The collector shall make an award which includes:

i. The true area of the land to be acquired.ii. The compensation to be allowed for the land.iii. Apportionment of the said compensation among the

interested persons.

a) Section 11(2)-Award by Consent: The said section provides that if any stage of proceedings the collector is satisfied that all the persons interested in the land who appeared before him have agreed in writing , he may without making further inquiry make an award according to the terms of such agreement.

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b) Section 11(a)-Period within which Award shall be made: The award shall be made U/S 11 within a period of two years from the date of publication of declaration U/S 6. If no award is made within that period the entire proceeding for the acquisition of land shall be lapse.

c) Section 12-Award of Collector: The award shall be final and conclusive evidence as to the true area, value of the land and apportionment of the compensation among the interested persons.

d) Section 18-Reference to the court: A persons who does not accept the award may by written application to the Collector/his authorized representative require the matter to be referred for the determination of the court on the following issues:

a) Measurement of the land.b) Amount of compensation.c) The persons to whom it is payable.d) The ratio in which the compensation is to be paid.

Section 23-Matters to be considered for determining compensation:

For determining the amount of compensation to be awarded the court shall take the following factors into consideration.

a) Market value of land on the date of publication of notification U/S 4.

b) Damage on account of standing crops.c) Incidental expenses arising on account of change of

residence.d) Damage, if any affecting his any other property

moveable/immovable or his earnings.

Section 24-Matters to be neglected in determining Compensation: The court shall not take into consideration:

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a) The degree of urgency of which has led to the acquisition.

b) Any declination of the person to part with the land acquired.

c) Any increase in the value of the land on account of its being put to any use which forbidden by law or opposed to public policy.

d) Any damage which is likely to be caused to the land acquired.

Section 28-Collector may be directed to pay interest on excess compensation: If the sum which, in the opinion of the court, the collector ought to have awarded as compensation is in excess of the sum which the collector did awards as compensation, the court may direct that the collector shall pay interest on such excess at the rate of nine percent per annum from the date on which he took possession of the land to the date of payment of such excess into court.

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RIGHT OF THE USER

RIGHT OF THE USER

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A.Process of Laying Trunk Line:Trunk lines are laid as per the provisions under the PMP Act 1962. Land acquisition section examines the proposals and if no observations are there, LAQ proceeds with the work of laying Trunk line, by taking consents of the involved land owners to allow ONGC to lay the pipelines and paying crop compensation.The Land acquisition team shall prepare the proposal with necessary records of the lands involved in ROU and forward to the Competent Authority declared by the Ministry of Petroleum and Natural Gas who shall in turn scrutinize the proposal and forward the same to Ministry of P &NG, New Delhi. For notification to be published in Gazette of Government of India Part ll, section 6, sub-section (h).On publication of the declaration under PMP Act, the liaison Officer/ Competent Authority under the PMP Act, shall determine the value and pay 10% of the land value to the owners as per the Act.

B.Process of Flow Line Laying:ROU for flow lines are not being taken at many of the work centers on the premise that these lines are laid in the area under Mining Lease with ONGC which provides that ONGC (Lease) has the liberty to construct and operate such pipelines and pumping stations as may be necessary for the purposes of carrying crude, petroleum and or/ natural gas or the products thereof from the said lands to any part of India. At some work centers like Rajahmundry and Karaikal ROU for the flow lines are also being taken,

Process of laying trunk line

Process of flow line laying

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while at the other centers like Ahmendabad, Ankleshwar and Mehsana such practices does not exist.

Process for Oil Flow Line Laying Activity:

Activity Responsibility Suggested Time Frame

Flow line length C & MArea Map with flow line length & width & 7/12

C & M

Work order & intimation to LAQ

LAQ Start time

Consent of farmers LAQ 20 daysCrop Enumeration village wise

LAQ 2 days

Panch case Mamlatdar/LAQ 4 daysFund no. Finance 1 dayPreparation of bill LAQ 1 dayPreparation of cheque Finance 2 daysDistribution of cheque LAQ 2 daysTotal Time 37 days

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LAQ SETUP AND FACILITIES

LAQ SET-UP AND FACILITIES

The present LAQ set-ups and the board quantum of job at different work centers are given below:

A. CBM, Kolkata/ Bokaro-States of West Bengal and Jharkhand.B. MBA, Kolkata- State of West BengalC. Nazira – State of AssamD. Jorhat- State of AssamE. Silchar- State of Assam

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F. Agartala- State of TripuraG. Rajahmundry- State of AndhraH. Karaikal- State of Tamil NaduI. Ahmedabad- State of GujaratJ. Mehsana- State of GujaratK. Ankleshwar- State of GujaratL. Jodhpur- State of RajasthanM. Uran- State of Maharastra

Pre-requisite for LAQ Team: The land Acquisition is one of the most challenging critical areas to be handled effectively and made effective. The best and outstanding performers should be identified for this job. Some of the major attributes are given below:

Minimum 5 years experience in the organization GTs and officers with q-1 qualification PR and liaison skill Traits for field job and negotiation skill Excellent communication skills-ability to communicate with local

villagers/District and local authorities

Basic knowledge in local language(at least 2-3 Team members) Belonging to the same state.

Facilities:

Mobile phone facilities for LAQ Team(officers)

I/C LAQ to have mobile phone and landline(with std facilities) both at Residence and office

Laptop Computer with mobile printer and scanner with I/C LAQ

GPS for measurement

All computer related facilities for the office

Visiting cards for all officers

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Video camera for mobile compensation team

Kits and liveries

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DOCUMENTATION PROCESS

DOCUMENTATION PROCESS

After the award by SPLAO, the ownership of the land is to be got changed in the name of ONGC. Earlier, it was thought that the award itself, bestows ownership on ONGC. Since, the lands have been acquired it is all the more necessary that the ownership is changed in favor of ONGC in the Revenue records.

The copy of the Award of SPLAO is sent to all concerned including the local village authorities, Mamlatdar, District Revenue Authorities and the Collector. After making payment to the land owners, SPLAO informs the Mamlatdar (at the Taluka level) regarding the acquisition and the Mamlatdar directs concerned

village revenue officials to change in the ownership is intimated to the District Inspector of Land record (DILR) to make the changes in the Revenue Records. Thereafter, 7/12 records are issued in the name of acquiring body, i.e., ONGC. The 7/12 records issued in the name of ONGC is to be collected from the office of the Mamlatdar and copies of them are to be sent to Local Estate Section and to HQ, for information and records.

FLOW CHART FOR TRANSFER OF OWNERSHIP

CONCLUSION

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Award by SPLAO/SDC/DLAO

Changes made in the Revenue Records

7/12 records issued in the name of acquiring

body

Collection of 7/12 Records

Changes approved by Mamlatdar & sent to

DILR

Receipt of Award by Concerned Authorities

Dispatch of copies of 7/12 to HQ & Local

Estate

Village Revenue officials to effect the changes

Mamlatdar directs the village revenue

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CONCLUSION

ONGC is one of the few companies in the world, which owns and operates a large number of oil field services such as drilling, production testing, geophysical and logistic services.

Land Acquisition issue remains as one of the major areas of concern as the delay in acquisition further delays the follow-up-actions. The Land Acquisition should be the joint responsibility of LAQ Board, I/C HR-ER, Indenting Section and Finance and it should be the key performance indicator to all these sections head, for taking suitable ownership and backup. At LAQ department, focus is on acquiring land on temporary basis, which more other than not is not succeeding in land owned by private land owners.

Thus, till date ONGC has acquired the following land in total (approximately):

Property available in ONGC

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Area Total no. of PropertyOffice 52Residential 57Production Installation 307Drill Sites 2857

SUGGESTIONS

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SUGGESTIONS FOR ENHANCING LAQ EFFECTIVENESS

Some suggestions are given as general guidelines may be considered for incorporation for the enhancement of LAQ activities and procedure.

1. The Land for the drill sites should be initially acquired on temporary lease for specific period with clause for renewal if required instead of going for permanent acquisition. This will avoid lengthy procedure for permanent acquisition & subsequent surrender in case site is abandonment. This will also minimize litigation.

2. As per the Land Acquisition Act, the temporary acquisition of land should not exceed more than years from the commencement of such occupation. Therefore, before completion of years, it is suggested that need based review should be undertaken for continuing occupation on temporary basis or otherwise.

3. Whenever land is acquired on executing agreement to lease, the lease deed should be executed immediately.

4. Land acquired should not be left unused for long and should be fully utilized within the shortest possible time to avoid idle investment and possibility of encroachment.

5. All the documents pertaining to acquisition of land and buildings should be kept systematically and in safe custody. The important documents should be kept in a manner that the required document is made

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available without loss of time. Records of land & Buildings should be computerized and suitable system needs to be devised for maintaining and up-dating the records of land & buildings.

6. Land acquired particularly for drill sites should be clearly demarcated and fenced. Maps pertaining to land & buildings should also be maintained and copies thereof be made available to security and the user departments.

GLOSSARY

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GLOSSARY

SPLAO = Special Land Acquisition Officer

SDC = Special Deputy Officer

LAQ = Land Acquisition

HR = Human Resource

ER = Employee Relation

PR = Public Relation

DLAO = District Land Acquisition Officer

CSR = Corporate Social Responsibility

DS = Drill Site

APIO = Assistant Public Information Officer

DSA = Drill Site Accommodation

I/C = Incharge

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BIBLIOGRAPHY

BIBLIOGRAPHY

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Manual on Land Acquisition - ONGC Ltd

Human Resource Management in ONGC - ONGC Ltd

Site - www.google.com