hindustan petroleum corporation ltd Management discussions

A. BUSINESS ENVIRONMENT & OUTLOOK

Economic Backdrop

The global economy grew by 3.4% in 2022, despite the steep challenges shaped by the lingering effects of the geopolitical situation in Ukraine, a cost-of-living crisis caused by persistent and broadening inflationary pressures and the headwinds in the world economy.

Indias growth continues to be resilient despite some signs of moderation. Indias output, which had suffered losses in 2020-21, rebounded to its pre-pandemic level in 2021-22. Growth momentum continued in 2022-23 with an estimated growth of 7.2% underpinned by strong investment activity bolstered by the governments capex push and buoyant private consumption. The normalization of economic activities led to a resurgence of contact - intensive services, supporting growth. Although significant challenges remain in the global environment, India remains one of the fastest growing major economies in the world.

Energy Scenario

In the global energy scenario, consumption of coal increased in 2022 primarily due to increased demand for electricity generation. High natural gas prices prompted to switch to more price-competitive options, including coal in some regions. Global coal use is estimated to rise by 1.2% in 2022, exceeding 8 billion metric tonnes in a single year for the first time and breaking a previous record set in 2013.

In 2022, global oil demand rose by about 2% to a level of 99.6 million barrels per day(mbpd), primarily due to growth in demand in India, US, Middle East and Africa. Oil demand in China declined in 2022 due to reduced mobility and manufacturing activity in China given the zero COVID-19 policy restrictions. Demand growth was also impacted by a slight slowdown in OECD countries towards the end of the year.

Global gas consumption declined by an estimated 1.6% in 2022 because of Europes record 13% contraction. European gas demand declined as milder weather conditions helped reduce heating needs. Energy efficiency measures and conservation efforts lead to curtailments across the most gas and energy-intensive industries. Global electricity demand increased by about 2% in 2022.

Indias coal demand grew at 7.3% on an annual basis in 2022, the highest by any country fuelled by rising coal-based power generation to meet higher than usual summer temperatures and expanding economic activity. Indias oil consumption increased in 2022 because of receding COVID-19 cases, enhanced mobility, recovery of industrial activities and the economy. The Nations oil demand grew by about 8% with the normalization of economic activities, which boosted demand, as COVID-19 receded.

Indias gas consumption declined by 6% in 2022 as high prices squeezed gas demand in price-sensitive sectors such as power generation, refining and petrochemicals. Electricity demand of over 8.4% in 2022 was substantially higher than the average annual growth rate of 5.3% in the 2015-2019 period.

International Crude Oil Market

The price of crude oil continued its rising trend in 2022-23, with benchmark crude prices averaging at US$ 96.2 per barrel, the highest since 2013-14. The price peaked at US$ 123.7 per barrel in June 2022 and fell to US$ 78.6 per barrel by March 2023. The year remained turbulent due to the geopolitical situation which saw sanctions disrupt the flow of crude oil & refined products and increased prices. The year also saw a dynamic shift in historical oil and gas trade flows as the global market struggled to keep up with constantly changing geopolitical conditions.

Crude prices fell in April 2022 as the US and IEA member Nations announced release of strategic petroleum reserves to offset supply losses due to sanctioned Russian oil. In June 2022, the European Union, the G7 group of Nations and Australia imposed the sixth round of sanctions on Russia, which included completely phasing out supplies of Russian crude oil and petroleum products by December 2022 and February 2023, respectively. The sanctions also covered a ban on all shipping, brokerage, insurance and financing services offered by EU companies for the transport of Russian oil with effect from December 2022. Dated Brent price recovered swiftly, reaching US$ 123.7 per barrel in June 2022, the highest monthly average level in more than a decade.

Crude oil prices fell in all three months in Q2 2022-23, with prices averaging at US$ 100.9 per barrel during the quarter and the monthly average falling below US$ 100 per barrel in August 2022 for the first time since the geopolitical conflict began in February 2022. Fear of recession led to a sharp correction in prices as major central banks across the world raised interest rates to rein in high inflation. Crude oil demand also took a hit as Chinas imports fell due to lower demand amid its strict zero-COVID policy, which led to widespread lockdowns in the nation. Uncertainties around a US-Iran nuclear deal, which could see the removal of sanctions on Iran and the resumption of its crude oil exports, further weakened prices during the quarter.

Crude oil prices rose to a level of US$ 93.3 per barrel in October 2022 as the OPEC+ group announced a crude oil production cut of 2 mbpd starting in November 2022, citing weak demand. Prices stayed weak due to uncertainty over the implementation of a crude oil price cap by Western Nations on sales of Russian crude. The Russian crude oil price cap was set at US$ 60 per barrel, above which a broad range of service, including maritime insurance and trade finance related to the maritime transport of crude oil of Russian origin was banned. Crude prices fell sharply in December 2022, averaging at US$ 81.1 per barrel, as China continued its commitment to its Zero-COVID policy, under which strict lockdowns were imposed in major cities across the nation as the number of infections spiked. This led to a fall in oil demand from the worlds biggest crude oil importer and pushed prices down during Q3 2022-23, averaging at US$ 88.7 per barrel.

Crude prices continued their descent in Q4 2022-23, averaging at US$ 81.3 per barrel, under pressure due to resurgent fears of a global economic slowdown as major central banks continued to raise interest rates to arrest high inflation levels, which led to slower economic growth. Prices gained support as Russia announced it would voluntarily cut its crude oil production by 0.5 mbpd from March 2023 even as its exports remained resilient despite sanctions and a price cap on sales of crude oil by the G7 group of nations and the European Union. Prices fell to their lowest levels in March 2023 since the geopolitical conflict began in February 2022, after the declaration of bankruptcy by multiple major banks in the US and Europe triggering a sharp selloff of financial contracts for crude oil.

Indian Crude Oil Basket

The Indian crude oil basket price averaged more than US$ 93.5 per barrel during 2022-23. A sharp rise in international crude prices in Q1 2022-23 due to the geopolitical conflict saw Indian crude oil basket prices rise to US$ 109.5 per barrel, first-time for a quarter settled above US$ 100 per barrel after Q2 2014-15. As the year progressed, crude prices remained in a declining trend, falling by US$ 11.6 per barrel in Q2 2022-23 to settle at US$ 97.9 per barrel and further falling to US$ 85.8 per barrel in Q3 2022-23. Global concerns about economic growth and the recovery of oil demand kept prices under check and led OPEC and its allied nations to announce a 2 mbpd cut in their crude oil production. Prices fell to the level of US$ 78.2 per barrel in December 2022. Q4 2022-23 saw the lowest prices during the year, averaging at US$ 80.6 per barrel, as turmoil in the Western banking sector prompted investors to move their investments away from risky assets like oil.

Benchmark Refining Margins

The year 2022-23 was an exceptional year for refining margins, as Singapore benchmark refining margins averaged US$ 10.8 per barrel for the entire 2022-23, the highest ever on record. The global disruption due to the geopolitical conflict and subsequent sanctions on the export of Russias refined products created supply uncertainties as Russia used to export about 1.9 mbpd of refined products before the conflict, 48% of which was Gasoil. This led to volatility in Gasoil prices over the year, with values touching an all-time high in June 2022.

Singapore refining margins settled at US$ 21.4 per barrel during Q1 2022-23, the highest ever on record for a quarter. Lower petrochemical demand due to strict COVID-19 lockdowns in China impacted its feedstock naphthas demand during the quarter. Robust gasoline demand in Asia (excluding China), coupled with refinery turnarounds and improved mobility, supported margins for the fuel. Jet cracks remained supportive of recovering demand as passenger flight demand recovered sharply in Europe, despite lockdowns in China. Diesel margins reached their all-time high level of US$ 63.6 per barrel in June 2022, supported by supply uncertainties surrounding Russia, which supplied roughly 40% of Europes diesel requirement. High oil tanker freight rates in April 2022 supported margins for fuel oil, which is primarily used as bunker fuel. Refining margins peaked in June 2022, with a monthly average of US$ 24.5 per barrel.

Singapore refining margins saw a sharp decline in Q2 2022-23, settling at US$ 7.1 per barrel. Continually weak macroeconomic sentiment in major economy of East Asia dampened demand for plastic derivatives, which affected naphtha demand and margins, which averaged US$ 23.4 per barrel during the quarter, the lowest on record. Gasoline margins also weakened sharply, settling at US$ 8.9 per barrel in Q2 2022-23, from US$ 29.8 per barrel the previous quarter, after higher expected demand from the US failed to materialize during the summer driving season. The introduction of special additional excise duty by India on refined product exports supported Asian diesel and jet fuel margins, as India is a major exporter of both fuels. Fuel oil margins remained weak as the majority of Russian fuel oil exports were diverted from traditional outlets in the US and Europe to the Middle East and Asia.

Singapore refining margins collapsed in October 2022 to a 15-month low of US$ 2.6 per barrel. Gasoline margins fell to US$ 0.1 per barrel, the lowest since the onset of COVID-19 in April 2020, as strict lockdowns in China reduced mobility and prompted domestic refiners to increase exports, leading to increased supplies in the Asian region. Naphtha margins remained weak during Q3

2022-23 as steam crackers reduced run rates due to low downstream demand for petrochemicals in Asia. Gasoil margins remained stable during Q3 2022-23, averaging at US$ 41.5 per barrel, supported by persistently high natural gas prices during winters, which prompted fuel switching to gasoil to meet heating demand in Europe and low inventories globally. Fuel oil margins recovered during the quarter as heating requirements in winter supported Fuel oil demand. Singapore refining margins averaged US$ 6.3 per barrel during Q3 2022-23.

Refining margins recovered in Q4 2022-23, reaching US$ 8.2 per barrel level, amid outages at French refineries due to union strikes in March 2023. A robust recovery in naphtha margins, which rose to US$ -6.5 per barrel, was supported by a recovery in petrochemical demand from China, which lifted all its mobility restrictions in a surprise move away from its strict zero COVID policy. Gasoline margins also recovered sharply during the quarter amid lower Chinese exports as domestic demand for the fuel rebounded. The G7 group of nations and the European Union also introduced price caps on the sale of refined products by Russia, which led to uncertainty in gasoil supplies from Russia. Margins for gasoil moderated in Q4 2022-23, settling at US$ 28.5 per barrel as Russian supplies continued to find their way into Middle East and Asian markets, depressing prices. Fuel oil margins received support from higher feedstock imports for secondary refinery units by China amid the lack of sufficient crude oil import quotas for refiners in March 2023.

Consumption of Petroleum Products

Petroleum product consumption in the country saw a robust growth of 10.21% from the previous year, touching the consumption level of 222 million metric tonnes (MMT) during 2022-23. Petroleum product consumption has also surpassed the pre-pandemic 2019-20 level of 214 MMT. All major petroleum products registered growth during the year, except for kerosene, lubricants, naphtha and LDO. The increase in passenger vehicle sales, increased travel, accelerated industrial and mining activities gave a boost to economic activities, which lifted the demand for petroleum products during the year.

During 2022-23, petrol (MS), diesel (HSD) and jet fuel (ATF) witnessed exponential growth, accounting for most increase in demand during the year. The MS volume consumption was recorded at 35 MMT, with a growth of 13% during the year. Economic momentum, higher car sales and higher inland travel contributed to an increase in MS consumption. Diesel consumption during the year, with a volume of 86 MMT, recorded a growth of 12%. The harvesting of rabi crops, high personal mobility, vehicular movement of cargo and full-fledged industrial and mining activities in various parts of the country ramped up diesel consumption. With domestic passenger traffic slowly coming back to its pre-covid levels, jet fuel demand recovered to 92% from the pre-covid levels in 2019-20 and witnessed 47% growth in consumption, recording a volume of 7.36 MMT during 2022-23. Consumption of pet coke went up by 25% to 18 MMT during the year due to increased feedstock demand from industries like chemical, mining, textile, etc. FO/LSHS consumption volume reached 7 MMT and increased by 11% due to an increase in demand from the chemical and shipping industries and a consumption shift to LSHS from gas in some industries during the year. LPG demand went up by a modest 1% to 28.5 MMT in 2022-23. Domestic LPG usage, which forms bulk of LPG demand, has plateaued with saturation of coverage and the penetration of piped natural gas.

Naphtha consumption declined by 8% to 12 MMT due to lower sectoral consumption in the petrochemicals sector. SKO consumption declined by 67% to 490 TMT and now stands at less than half a million tonnes, with more and more states becoming kerosene-free. Bitumen demand was flat at around 8 MMT, a 0.3% decline during the year. National highway construction in 2022-23 was at the same level as in 2021-22. Lubricants and grease consumption stand at 4 MMT, having declined by 16% due to a short supply of base oil in 2022-23, mainly due to refinery shutdowns.

Outlook

The persistence of inflation across major economies, continuing geopolitical uncertainties and tightening financial conditions are taking their toll on global economic activity. The world economy is expected to grow by 2.8% in 2023, compared to 3.4% in 2022. The economic slowdown is concentrated in advanced economies, whereas growth in emerging markets and developing economies is expected to be stable.

Indian economy is projected to grow by about 6% to 6.5% in 2023-24 on the back of governments continued thrust and speeding infrastructure development, strong agricultural production, a post-pandemic rebound in contact-intensive services, the strengthening of private sector balance sheets and the much-improved financial health of the public sector. External factors that may be a drag on the growth are slowing global economic growth, geopolitical tensions, an upsurge in financial market volatility, tightening global financial conditions, etc.

Global oil demand is forecast to increase by about 2 mbpd to reach a record 102 mbpd in 2023, with a growth rate of about 2% driven by air travel recovery supported by healthy mobility and steady industrial activities. The production cut announcement by OPEC Plus in early April 2023 has added to the volatility in the market already roiled by geopolitical tensions. However, significant uncertainty around demand forecasts remains because a wide range of possible outcomes exists for both global economic conditions and oil demand in China following its pivot away from a zero-COVID strategy.

According to UN population estimates, India has overtaken China as the worlds most populous country. An expanding economy, urbanization and industrialization, coupled with a rising population, will drive energy demand growth in India. India is projected to see the largest increase in energy demand of any country between 2021 and 2030. To meet this growing demand, India will need to diversify its energy mix and expand its energy infrastructure. Meeting this demand will require significant investment and innovation. It presents an opportunity for the country to transition to a more sustainable and diversified energy mix in the long term.

India is the third-largest consumer of oil in the world. With continuing economic growth, oil demand is set to increase and contribute significantly to the Indian energy mix. Oil demand growth in India is expected to be about 4% to reach a level of about 5.4 mbpd in 2023. The anticipated increase in capital spending by the GoI is expected to boost momentum of economic activity supporting construction and manufacturing activity. These factors, combined with a steady rise in airline activity, are expected to support healthy oil demand growth.

The government of India has set ambitious targets for expanding the countrys road network towards improved connectivity, increased mobility, supporting economic growth and environmental benefits. The significant investment in transportation infrastructure is expected to drive further growth in petroleum consumption. Indias consumption of petroleum products is estimated to show a rising trend in 2023-24 in view of robust economic growth, industrial activity and enhanced mobility.

B. FINANCIAL PERFORMANCE

The exceptionally high international oil prices along with suppressed marketing margins on select transport fuel had impacted the profitability, resulting in a Net Loss of H 8,974 Crore for 2022-23 as compared to Profit After Tax (PAT) of H 6,383 Crore during the corresponding period of the previous year.

HPCL continues to command strong credit ratings assigned by various credit rating agencies as under:

Instrument	Rating Agency	Rating as of July 20, 2023	Outlook as off July 20, 2023	Remark
International Long-	Moodys	Baa3	Stable	At par with Indias sovereign rating
Term Rating / USD
Bond rating
International Long-	Fitch	BBB-	Stable	At par with Indias sovereign rating
Term Rating / USD
Bond rating
Long Term Debt	CRISIL	AAA	Stable	Highest rating grade by CRISIL
Long Term Debt	India Ratings	AAA	Stable	Highest rating grade by India Ratings
Long Term Debt	ICRA	AAA	Stable	Highest rating grade by ICRA

Gross Sales

Gross sales of the Corporation (inclusive of excise duty) in the financial year 2022-23 was Rs.4,64,684 Crore as compared to Rs. 3,72,642 Crore in the financial year 2021-22. The total sale of products for the year 2022-23 was 43.45 MMT as against 39.14 MMT for the year 2021-22.

Profit before Tax

The Corporation has reported a Loss of Rs. 11,915 Crore in

2022-23 as compared to Profit Before Tax (PBT) of Rs.8,204 Crore in 2021-22.

Provision for Taxation

Income tax expenditure of Rs. (2,941) Crore has been reported for FY 2022-23 as against income tax expenses of Rs. 1,821 Crore for FY 2021-22.

Profit after Tax

The Corporation has reported a net loss after tax of Rs. 8,974

Crore during 2022-23 as compared to net profit after tax of Rs. 6,383 Crore during 2021-22.

Depreciation and Amortization

Depreciation for the year 2022-23 was Rs. 4,330 Crore as against Rs. 3,969 Crore for the year 2021-22.

Borrowings

The total Borrowings of the Corporation were Rs. 64,517 Crore as on 31^st March, 2023 as compared to Rs. 43,193 Crore as on

31^st March 2022. Long-term borrowings were through Non-Convertible Debentures (NCDs), Foreign Currency bonds, Loans from foreign banks and Oil Industry Development Board (OIDB). Short-term borrowings during the year were mainly through short-term Rupee loans from banks, Collateralized Borrowing and Lending Obligations (CBLO)/ Tri-partite Repo System (TREPS) and Commercial papers. The long-term debt-to-equity ratio stands at 1.80 as of 31^st March, 2023 as against 0.90 as of 31^st March, 2022 and on an overall borrowing basis (long-term and short-term) the debt-equity ratio stands at 2.33 as on 31^st March, 2023 as against 1.12 as on 31^st March, 2022.

Capital Assets

Net fixed assets (including capital work in progress) increased to Rs. 90,392 Crore as on 31^st March, 2023 from Rs. 83,960 Crore as on 31^st March, 2022.

Investments

Investments as on 31^st March, 2023 were Rs. 21,211 Crore as compared to Rs. 17,944 Crore as on 31^st March, 2022.

Gross Refining Margins (GRMs)

The Gross Refining Margin (Gross of Export Cess) for HPCL averaged at US$ 12.09 per barrel for the year 2022-23 as against US$ 7.19 per barrel for the year 2021-22.

The Gross Refining Margin of Mumbai Refinery (Gross of Export Cess) averaged at US$ 14.82 per barrel for the year 2022-23 as against US$ 7.60 per barrel for the year 2021-22.

The Gross Refining Margin of Visakh Refinery (Gross of Export Cess) averaged US$ 9.20 per barrel for the year 2022-23 as against US$ 6.92 per barrel for the year 2021-22.

Earnings per Share (EPS)

Earnings per share for the year 2022-23 are negative Rs. 63.26 as compared to Rs. 44.94 for the year 2021-22.

Dividend

The Board of Directors, after taking into account the financial results of the Corporation, has not recommended any dividend for the FY 2022-23.

A final dividend of H 14 per share was recommended for the

FY 2021-22.

Key Financial Ratios

Key financial ratios for the Corporation are provided as under:

Ratio Description	2022-23	2021-22
Debtors Turnover Ratio (times)	70.68	56.51
Inventory Turnover Ratio (times)	14.37	11.66
Interest Service Coverage Ratio	(1.45)	6.00
(Times)
Current Ratio	0.59	0.70
Long-term Debt Equity Ratio	1.80	0.90

C. STRATEGY

The 5-year strategy roadmap up to 2025-26, christened as the ‘T25 strategy is under implementation. The aim is to capture opportunities in the changing energy landscape, leverage emerging opportunities, navigate future challenges and diversify into new business lines, which will help to de-risk the existing business portfolio.

The T25 strategy aims at creating value and delivering growth responsibly by strengthening existing businesses, leveraging new growth engines such as petrochemicals and natural gas and seizing green and emerging opportunities with a focus on technology and innovation. Special emphasis on Environment, Social and Governance (ESG) parameters and building strategic partnerships will provide a competitive edge to the organization in the changing business landscape.

Several large-scale projects have been undertaken by the Company for the strengthening of its existing businesses in refining and marketing. The majority of these projects are either completed or nearing completion. Completion and commissioning of these major projects will help HPCL enhance its capacities and create value in the coming years.

Natural gas and petrochemicals are recognized as new growth engines for HPCL in its business portfolio. Leveraging the existing presence and investments by HPCL and HPCLs JVs/Subsidiaries in these areas is being planned. HPCL is participating in the entire value chain of the natural gas business by setting up an LNG import and regasification terminal through a 100% subsidiary, participating in natural gas pipelines through joint ventures and expanding its presence in the CGD business. Large-scale investments by HPCL are underway for building petrochemical manufacturing capacities through the joint venture route. HPCL has forayed into the marketing of petrochemical products with the launch of the HP DURAPOL brand.

Opportunities in green business models and practices are emerging in the country. HPCL is seizing green and emerging opportunities by expanding footprints in advanced/alternative fuels. For expanding footprints in biofuels, various biofuels projects are under execution by HPCL on their own as well as with the participation of entrepreneurs. Expansion in renewables is being done through the solarization of retail outlets, enhanced usage of renewable power for meeting operational requirements of refineries, setting up of infrastructure for power import at both refineries, etc. The 370 TPA green hydrogen plant at Visakh refinery is in an advanced stage of completion. With respect to alternative fuels and energy storage, new avenues of value creation in the Electric Vehicle (EV) ecosystem, including battery swapping and energy storage solutions, are being explored in collaboration with various technology start-ups, OEMs, etc. The vast network of over 21,000 retail outlets of HPCL is being leveraged while foraying into emerging opportunities, including non-fuel and adjacent business opportunities.

HPCL continues its focus on technology for business transformation and for delivering value to its customers. A digital strategy is in place and various digital transformation projects have been completed or are ongoing. Cutting-edge digital technologies are being leveraged to enhance operational efficiencies and to provide enriching customer experiences. The project on modernization of existing ERP system is being executed, for achieving greater business flexibility, higher digital agility and enhanced efficiencies. HPCL continued its emphasis on innovation for improvement in offerings, enhancement in productivity and the introduction of new products. The strength of the ‘HP Green R&D Centre in Bangalore is being leveraged to provide advanced technical support to various strategic business units and for the conceptualization, development and commercialization of products and technologies in emerging areas. For sustaining continual improvement, ideas generated across the Corporation are driven through a structured ‘Initiative Management Office called ‘Idea Junction and are regularly tracked. HPCL has a scheme for supporting ‘startups called ‘Udgam, which enables technology innovators and entrepreneurs to pursue a promising business and technology idea to fruition.

Increased focus on Environmental, Social and Governance (ESG) performance is becoming necessary as momentum is building up across the globe to maximize the usage of renewable energy, sustainability and participation in the unfolding energy transition scenario. HPCL is committed to conducting business in a responsible manner by preserving the environment and contributing to sustainable development. The Corporation has developed a validated roadmap to achieve Net Zero in Scope 1 and 2 emissions by 2040. HPCL identified key levers for achieving net zero, such as enhancing energy efficiencies in its own operations, using renewable power in refineries, replacing hydrogen requirements with green hydrogen, reducing flare gas emissions, etc. Towards emission intensity reduction, the Company is exploring various business areas such as renewable energy and storage, biogas, biofuels, petrochemicals and green hydrogen. To accelerate its energy transformation journey, HPCL has established a new ‘Energy Transition Cell, which is dedicated to achieving the Companys Net-Zero goals.

D. INTEGRATED MARGIN MANAGEMENT

The Integrated Margin Management (IMM) group operates with the objective of enhancing Net Corporate Realization (NCR) by planning and optimizing end-to-end supply chain logistics from crude oil to customers and aligning various strategic business units to a common corporate goal. IMM continued its efforts during 2022-23 to drive the planning operations of HPCL with the objective of enhancing net corporate realization.

IMM leveraged margin improvement opportunities by planning for processing of crude grades available at competitive rates at both HPCL refineries. HPCL refineries achieved the highest-ever crude throughput of 19.09 MMT during the year with meticulous planning. Overall value realization was enhanced with a focus on increased production and sales of higher-value products and the introduction of new niche products such as HP Super Solvent, Low Aromatics Kerosene, Low Sulphur Fuel Oil, etc. Through meticulous planning, IMM enabled the highest cross-country pipeline throughput thereby enhancing asset utilization.

The IMM group drives various margin improvement ideas generated across the Corporation through a structured Initiative Management Office (IMO) known as ‘Idea Junction, which tracks the execution of these ideas, besides Key Focus Areas. During 2022-23, Idea Junction crossed the landmark of receiving 20,000 ideas with a cumulative employee participation rate of 59%. The group ran monthly theme-based idea campaigns and conducted idea workshops to enhance employee participation and focused idea generation.

E. REFINING PERFORMANCE

Crude Oil Imports

HPCL imported 14.97 MMT of crude oil in 2022-23, as compared to an import of 10.12 MMT during 2021-22 and procured 3.95 MMT of crude oil from indigenous sources. Out of the total crude import of 14.97 MMT, 11.16 MMT was high sulphur crude oil and 3.81 MMT was low sulphur crude oil. The Free On Board (FOB) cost of imported crude oil amounted to US$ 10,274 Million (Rs. 82,979 Crore) in 2022-23 as compared to US$ 6,203.10 Million (Rs. 46,531 Crore) in

2021-22. The average cost of crude oil imported in 2022-23 stood at US$ 92.94 per barrel, as compared to US$ 82.82 per barrel in 2021-22. The average exchange rate was Rs. 80.77 per USD in 2022-23 as compared to Rs. 75.01 per USD in the previous year.

Refining

HPCL refineries at Mumbai and Visakhapatnam recorded superior performance in 2022-23. The highest-ever combined refining throughput of 19.09 MMT with capacity utilization of 107% was achieved during the year. Mumbai Refinery achieved its best-ever crude throughput of 9.804 MMT, while Visakh Refinery recorded a crude throughput of 9.286 MMT. The highest-ever production of MS, HSD and LOBS was also achieved during the year. Meticulous crude sourcing, right crude mix and expeditious evacuation of finished products, duly complemented by improved refinery reliability and standardized operating processes, helped HPCL exhibit sound performance.

HPCL Refineries are committed to modernizing and enhancing the infrastructure to meet the growing energy demand in the country. HPCLs Visakh Refinery Modernization Project (VRMP) to enhance the crude refining capacity from 8.3 to 15.0 MMTPA has attained the critical milestone of the commissioning of a 9 MMTPA Crude Distillation Unit (CDU), which is highly energy efficient. The associated facilities and utilities, such as the Grid Power Supply, Raw Water System, Bearing Cooling Water system, Sea Cooling Water System, Plant / Instrument Air systems, Cryogenic Nitrogen Unit and Staged Flare System were also commissioned during the year. The completion of the key milestone of CDU commissioning marks a significant step in optimizing the refining processes, reducing the environmental footprint and meeting the growing demand for high-quality products. The refinery expansion project is in an advanced stage of completion, which will further enhance energy security and sustainability.

Effective energy utilization and energy conservation remain priorities for refineries. Consistent implementation of energy conservation has helped refineries achieve savings of about 85,000 SRFT/year (Standard Refinery Fuel Tonnage per year) in 2022-23.

Refineries are committed to prioritizing workplace safety, health and the environment in all aspects of their operations. The Vulnerability Index (VI) for job safety monitoring has been implemented in refineries in 2022-23. Vulnerability Index implementation helps in identifying potential safety risks and hazards in operations, enabling proactive measures to mitigate those risks and ensuring a safer workplace. Mumbai Refinery has achieved its best-ever safety performance, with 35.6 million man-hours of safe operation as of 31^st March, 2023.

The thrust on continuous performance improvement has been a key focus area for refineries. To achieve reliability and operational excellence, both refineries are taking part in a performance benchmarking study by M/s. Solomon Associates, USA. Both refineries are also participating in the Refinery Performance Improvement Programme (RPIP) to optimize processes and energy consumption.

Towards the digital acceleration of the training process, HPCL has launched training practices with Virtual Reality (VR) techniques in both refineries. Implementation of virtual reality techniques is adding value with enhanced engagement, cost & time efficiencies, ensuring a safe, sustainable environment and scalability in the learning and development of our employees.

To further enhance refining capacity, a new 9 MMTPA grass-root refinery and petrochemical complex is being set up by HPCL Rajasthan Refinery Limited (HRRL), a joint venture company between HPCL and the Government of Rajasthan, at Pachpadra in Barmer district of Rajasthan. The project has made significant progress with the finalization of all major contracts for project execution. The construction activities are progressing in full swing at the site.

F. MARKETING PERFORMANCE

HPCL achieved the highest sales volume of 43.45 MMT during 2022-23, with a growth rate of 11%. During the year, geopolitical factors had a significant impact on crude oil prices and energy supply dynamics, leading to oil price volatility and an increased focus on energy security. Despite the heightened price and margin fluctuations in the sector, HPCL continued to meet customer and market demands and ensured the availability of petroleum products across its network. The details of performance under various market business lines are as follows:

Retail

In the retail business, the highest sales volume of 28.2 MMT was achieved in 2022-23. A number of initiatives were undertaken during the year to enhance customer value and reach. During 2022-23, HPCL commissioned 1,161 retail outlets, taking the total to 21,186 retail outlets, which made the Company the second-largest retail network owner in the country. CNG facilities were added at 301 retail outlets, taking the total number to 1,387, thereby ensuring wider availability of alternate fuels and offering more choices to customers.

HPCL commissioned 1,026 EV charging facilities during the year, taking the total number of retail outlets with EV charging facilities to 2,037. Towards enhancing customer convenience, HPCL has actively worked on the setting up of EV charging systems in parking lots and secured a key order during the year.

Branded fuel continued to be a valuable asset for HPCL, helping to differentiate offerings and create value for the organization. The highest-ever sales of fuel additives ‘PoWer Petrol Plus and ‘Turbojet Diesel Plus were registered during the year. Taking a step forward in providing customers with enhanced quality products that meet their evolving needs, HPCL launched ‘Power 95, a high-octane premium-branded petrol, during the year.

To ensure compliance with standard operating procedures and consistent service standards, video analytics of forecourt operations with the help of new-age technologies have already been implemented at select outlets. The technology platform has been further extended to include safety aspects of retail outlet operations as well. The data management of over 11,000 retail outlets has been integrated into the video analytics platform.

To cater to the evolving market needs and consumer preference for digital and cashless payment modes, co-branded credit cards were launched during the year on the Rupay platform. HPCL and IDFC First Bank have collaborated to launch co-branded credit cards named ‘First POWER and ‘First POWER +. The co-branded credit card with Bank of Baroda is named ‘ENERGIE.

HPCL continued to focus on the non-fuel business (Allied Retail Business) with a wide range of facilities for customers across the network, including ATMs, take-away food counters, ‘C stores, vehicle accessories, etc., through tie-ups with leading banks, food brands and Original Equipment Manufacturers (OEMs).

The corporations ‘Drive Track Plus loyalty program, which combines control, convenience, security and attractive benefits for fleet owners and drivers, kept up its momentum for client retention and growth in the commercial vehicle category. The on-boarding of significant commercial vehicle OEMs, aggregators, NBFCs, large fleet transporters, small fleet owners, etc., on ‘Drive Track Plus platform, contributed to the top line. To enhance the customer experience, the technology solution has been expanded with new features.

LPG

‘HP Gas, the LPG brand of HPCL, serves over 9.3 crore consumers. HPCL achieved its highest-ever LPG sales of 8.1 MMT, registering a growth of 4.9% over the previous year. The year-on-year growth is the highest among industry. ‘HP Gas has enrolled over 25.98 lakh new customers during the year, which includes 14.96 lakh customers under the ‘Pradhan Mantri Ujjwala Yojna (PMUY 2.0). HPCL commissioned 45 new domestic LPG distributors during 2022-23, taking the total number of domestic LPG distributors to 6,283. In order to expand its market reach in the non-domestic segment, HPCL commissioned a record 51 non-domestic distributors in 2022-23, taking the total number to 328 non-domestic distributors.

The Corporation sustained its leadership position in the Free Trade LPG (FTL) segment in 5 kg and 2 kg packages to meet the niche requirements of customers, especially small vendors and young professionals. In this category, over 5.5 million ‘APPU cylinders in package sizes of 5 kg and 2 kg were sold during the year, thereby achieving a market share of over 44% in this competitive segment.

HPCL continues to focus on augmenting bottling capacities and LPG storage at locations to meet the growing LPG demand. Towards this objective, HPCL has commissioned 3 LPG plants during this financial year. The plants are (i) 120 TMTPA capacity LPG plant at Barhi (Jharkhand) (ii) 180 TMTPA capacity LPG plant at Patalganga (Maharashtra) (iii) 60 TMTPA capacity bottling plant at Sitar Ganj (Uttarakhand). Additionally, 21 mounded storage vessels were commissioned at nine different locations, thereby augmenting LPG storage capacity by 9.8 TMT.

HPCL prioritizes safety in all aspects of daily operations. During the year, several health and safety campaigns were undertaken. Over 1,043 ‘Sadak Suraksha camps were organized, covering both technical and behavioural aspects of driving on public roads for LPG transporters and crew.

Lubricants

The Indian lubricant market is one of the fastest-growing markets in the world and the third largest in terms of consumption. The total demand for finished lubricants is estimated to be about 2,800 TMT, with process oils contributing about 1/3^rd of this demand.

HPCL recorded an overall sales volume of 632 TMT of lubricants during 2022-23, including exports of about 6 TMT across 18 countries. HPCL enhanced its market reach through its 100% subsidiary company, HPCL Middle East FZCO and achieved its highest-ever sales to countries in the Middle East region and Africa. The commercial production and sales of Diesel Exhaust Fluid (DEF) were scaled up for the second year in a row, recording the highest-ever sales of more than 25 TMT during the year, sold mainly through the wide network of our retail outlets.

As part of HPCLs effort to leverage strategic collaborations, HPCL signed a long-term trademark licensing agreement with Chevron Corporation. The partnership paves the way to leverage HPCLs market leadership to add value via a broader, premium product offering to consumers through synergies between HPCL and Chevron.

HPCL is a major producer of base oils in the country, with the capability of producing Group I, Group II and Group III base oils. HPCL continued to improve operational efficiencies at lube blending plants through infrastructure augmentation, automation and various other innovative solutions.

The focus on Original Engine / Equipment Manufacturers (OEMs) and their customers from core sectors was maintained towards consolidation of business through partnerships. The geographical reach of the marketing network has been enhanced by adding 36 new channel partners.

The digital transformation of loyalty programs was launched during the year towards improved customer engagement and experience. Social media promotion was continued throughout the year, which helped with enhanced visibility, targeted advertising options, leveraging social proof and getting customer feedback.

HPCLs Lubricants business continued to benefit immensely from the close interactions between OEMs and HPCLs R&D / Technical Services teams with stakeholders. Close to 2,000 customer-connect activities were conducted during the year.

HPCL continued to play an innovative and proactive role in developing new products for government and private sector customers. Close interactions with the Army, Air Force and other agencies enabled a number of approvals for new products. HPCLs Quality Control department, with its fully equipped laboratories across India for testing various petroleum products, has enabled HPCL to maintain high standards of quality across its entire product portfolio.

Direct Sales (Industrial & Consumer sales)

HPCLs Industrial and Consumer (I&C) business line handles the institutional sales of fuels, bitumen, naphtha, solvents, petrochemicals and other bulk products consumed by industries such as mining, construction, power plants, shipping, etc. in both the private and government sectors and also carries out exports of these products to various overseas markets.

During 2022-23, HPCLs I&C business line recorded overall sales of 4.32 MMT. The continued focus on furnace oil and bitumen businesses has enabled them to surpass sales of 1.2 MMT and 1.5 MMT, respectively, in these products. Also, the highest-ever sales of 27 TMT were recorded in hexane. In bunker marine fuels, sales of 172 TMT were recorded, with a growth rate of 153%. HPCL has made deeper inroads into the Low Sulphur Furnance Oil (LSFO) business, which recorded a volume of 37 TMT with a growth of 1233% over last year.

During 2022-23, HPCL forayed into the marketing of petrochemical products with the launch of the HP DURAPOL brand. The brand will cover various grades of HDPE (High-density Polyethylene) LLDPE (Linear low-density polyethylene) and PP (Polypropylene). The polymer products will cater to several end-use segments, e.g., food, agriculture, textiles, construction, medical, etc. The foray into the petrochemical business will help in reinforcing the Government of Indias mission of ‘AatmaNirbhar Bharat. HPCL has commenced the marketing of polypropylene and polyethylene during the year.

Effective key account management continues to play a pivotal role in sustainable, long-term growth in the I&C business. HPCL supplies bulk diesel to various public and private entities, including Indian Railways, State Transport Undertakings (STUs), defense units, major road construction companies and industrial consumers. HPCL also caters to the fuel requirements of Army and paramilitary forces such as BSF, ITBP, SSB, CRPF and Border Roads Organisation (BRO) for the supply of fuels and bitumen by delivering products to even their most remote locations.

HPCL is committed to strengthening its relationships with key accounts through various customer-centric initiatives. The Customer Relationship Management (CRM) tool is being leveraged to facilitate quicker and more efficient responses to customer leads and to offer a better customer experience. A continued focus has been maintained on the retention of existing business and the solicitation of new customers in the MSME sector to sustain growth in all product lines.

HPCL continues to look beyond traditional products and foray into various niche and specialty product segments. The key strengths of the HPCL Green R&D Centre in developing high-quality products are being leveraged in this direction. HPCL is also exporting products like furnace oil, bitumen, hexane, JBO and MTO to countries like Nepal, Bhutan and others. HSFO (high sulphur furnace oil) bunkering for scrubber-fitted vessels has been started at major ports. Infrastructure continues to be the key strength of HPCL in delivering products efficiently and at competitive prices to customers. Bitumen storage at Haldia has been increased through its JV, M/s Hindustan Colas Private Limited.

Aviation

HPCL supplies Aviation Turbine Fuel (ATF) to airline customers through a vast network of Aviation Service Facilities (ASFs) covering all the major airports in India. ‘HP Aviation fuelling service meets stringent international regulations in addition to the various rules and regulations stipulated by various agencies / regulatory bodies. In order to better serve all non-scheduled clients, improve customer satisfaction and keep our commitment to on-time fuel delivery, HP Aviation operates a unique single point of contact service branded as ‘HP Aviation Hub, which is accessible round-the-clock. HPCL achieved ATF sales of 693 TMT during 2022-23, registering a growth rate of 33.1% over the previous year.

The network of Aviation Service Facilities has been further strengthened during the year with the addition of facilities at Kannur (Kerala) and Mopa (Goa). With the addition of these locations, HP Aviation now has 54 Aviation Service Facilities (ASFs), including defence and open-access locations across the country.

Natural Gas

To create a gas-based economy, the Government of India has envisaged increasing the share of natural gas in Indias primary energy mix to 15% by 2030. HPCL has also undertaken several initiatives to expand its presence in the natural gas sector by increasing its footprints in the midstream and downstream gas markets in India. HPCL is participating in the import, regasification, transportation, City Gas Distribution (CGD) networks and marketing value chains.

For import and regasification, HPCL LNG Ltd., a 100% subsidiary of HPCL, is constructing a 5 MMTPA LNG regasification terminal at Chhara Port (Gir Somnath district) in Gujarat. The terminal has been mechanically completed and pre-commissioning activities have been initiated.

Towards natural gas transportation in the country, HPCL is participating in the development of three cross-country natural gas pipelines, i.e., the Mehsana-Bathinda pipeline, the Bathinda-Gurdaspur pipeline and the Mallavaram-Bhilwara-Bhopal-Vijaipur pipeline, through joint venture companies viz. GSPL India Gasnet Limited (GIGL) and GSPL India Transco Limited (GITL). By 2022-23, GIGL had commissioned about 1,254 km of gas pipeline. GITL is operating a 365 km gas pipeline for the supply of natural gas to the Ramagundam Fertiliser Plant.

HPCL is actively participating in the establishment of CGD networks both on its own and through Joint Ventures, namely AavantikaGasLimited(AGL),BhagyanagarGasLimited(BGL), Godavari Gas Pvt. Limited (GGPL) and HPOIL Gas Pvt. Limited. CGD networks are being operated in nine geographical areas (GAs) by these JVs in the states of Madhya Pradesh, Andhra Pradesh, Telangana, Maharashtra and Haryana. 30 CNG stations were commissioned and more than 59,000 domestic PNG connections were added during the year through these Joint Venture companies in 2022-23.

The details of the various joint venture companies and subsidiaries for natural gas infrastructure and marketing have been provided in the section on ‘Joint Venture Companies and Subsidiaries.

Overall, HPCL along with its JV companies has the authorization for setting up of CGD networks in 23 GAs in 12 States.

On a standalone basis, HPCL is currently building City Gas Distribution networks in 13 GAs (Geographic Areas) in 7 states, i.e., Haryana, Uttar Pradesh, Uttarakhand, Bihar,

Rajasthan, Jharkhand and West Bengal, across 36 districts. During the year, HPCL commissioned 86 new CNG stations in the GAs authorized to HPCL, taking the total number of CNG stations in HPCL-authorised GAs to 209. In the CGD pipeline network, 2,110-inch km of steel pipeline, 1,233 km of MDPE pipeline and 22,733 new PNG connections were released during the year. Domestic PNG supply is continuing in 3 cities and industrial PNG supply is being given to 13 industrial customers in GAs authorized to HPCL. In addition, HPCL is operating a Network of 1 mother station and 17 daughter booster stations in and around the city of Ahmedabad.

In addition to retail sales through City Gas Distribution network, the Company is also expanding its customer base to include large industrial units, including fertilizer plants, refineries, petchem plants and CGD companies. During 2022-23, HPCL commenced gas supply to 19 new customers. HPCL also commenced the sourcing and marketing of gas through the Indian Gas Exchange, adding flexibility to operations.

While building the infrastructure for the marketing of natural gas in the country, the sourcing of natural gas is also being secured through various contracts. HPCL has entered into long-term gas-sourcing contracts from ultra-deep-water fields in the KG Basin and other indigenous sources. HPCL is also in the process of sourcing LNG at a competitive price from the international market to balance its gas portfolio and meet its captive and marketing demand.

Supplies, Operations & Distribution

Supplies, Operations and Distribution (SOD) continued to play a pivotal role in maintaining a robust supply chain management and seamless product movement from the supply source to the end consumer in the stipulated time, utilizing the strong infrastructure of 81 terminals/depots. Robust control and monitoring systems at operating locations with strict adherence to SOPs ensured safe operations and optimum inventory at locations. An all-time high throughput of 57.3 MMT was achieved in 2022-23 and ensured uninterrupted product availability throughout the country.

HPCL leverages technology to enhance productivity and operational excellence. During 2022-23, four locations were added as ‘SMART terminals, resulting in enhanced operational efficiency, cost efficiency, safety and stakeholder convenience. Currently, HPCL has 64 ‘SMART terminals in its network. To ensure the quality and quantity of fuel delivered at delivery points, upgraded centralized Vehicle Tracking Systems (VTS) integrated with electromechanical locking devices have been implemented at all tank trucks.

Infrastructure remains a key strength of HPCL for delivering products at competitive prices to the end customers. New

POL depots at Sitarganj, Uttarakhand and Dharmapuri, Tamil Nadu were commissioned during the year to enhance the market reach. The existing POL depot at Kozhikode in the state of Kerala was revamped, which helps enhance product distribution capabilities in the state.

Multipronged actions have been undertaken by the Corporation to enhance safety in all facets of operations, i.e., operations within terminals/depots, transportation and unloading at other terminals/depots/retail outlets. The various measures include interlocking of various equipment and alarm systems in the terminal/depot premises, SOP-based hands-on training for all operating staff, training on safe driving for tank truck drivers, monitoring of tank truck movement through a vehicle tracking system, etc.

Pipelines & Projects

HPCL has a high level of competency in the execution of pipeline projects and managing pipeline operations effectively to optimize costs and enhance efficiencies. In 2022-23, two cross-country pipelines were commissioned, i.e., the 650 km long Hassan-Cherlapally Pipeline and the 697 km long Vijayawada-Dharmapuri Pipeline. HPCLs operating pipeline network length increased to 5,132 km with the commissioning of these cross-country pipelines and mainline capacity has reached 35.2 MMTPA. During the year, highest-ever pipeline throughput of 23.25 MMTPA was achieved, registering a year-on-year growth of 16.8%.

Energy efficiency and cost optimization have been key focus areas for pipeline operations. With sustained efforts towards efficiency and conservation, the operating cost of pipelines has seen a reduction of about 5% in comparison with historical levels. On the back of various cost optimization initiatives implemented during the year, HPCL has improved performance on the Solomon Global Benchmarking of Manageable Non-Volume Expenditure (MNVE), which is in the top quartile of Indian Pipelines average performance.

To leverage technology for enhanced productivity and safety in operations, a trial run of the survey of cross-country pipelines using drones has been undertaken in 2022-23. HPCL is the first to conduct a drone run covering 51 km in the Rewari-Kanpur pipeline to survey a section of its pipeline network.

For further expanding the pipeline network and capabilities, a number of pipeline projects are under execution with an estimated investment of over H 2,000 Crore, which will help in enhancing the network length by over 500 km. These pipeline projects will increase HPCLs pipeline capacity to over 40 MMTPA and its network length to about 5,600 km, thus significantly strengthening HPCLs position in key markets. HPCL has also teamed up with IOCL and BPCL in the development of Indias longest LPG pipeline from Kandla to Gorakhpur (~2,800 km) through a joint venture route.

G. RESEARCH AND DEVELOPMENT

Hindustan Petroleum Green Research & Development Centre (HPGRDC) has been set up with the objective of providing advanced technological support to marketing SBUs and refineries. HPGRDC aims to provide operational excellence, develop & adopt innovative, path-breaking technologies and become a knowledge hub. The research centre is provided with state-of-the-art infrastructure facilities, comprising energy-efficient green buildings with a built-up area of about 6 lakh square feet on a sprawling campus of 170 acres. With the commissioning of seven labs in Phase 2, the state-of-the-art HPGRDC has 14 labs in various areas.

During 2022-23, 33 new products /technologies were developed and launched. HPGRDC filed 90 patents in 2022-23, taking the cumulative Indian and international patent applications to 443. During the year, 36 patents were granted to HPGRDC, taking the cumulative patents granted to 160 as of 31^st March, 2023.

Towards acquiring advanced scientific knowledge, increased resources, innovation and collaborative agreements were signed with various organizations/institutions during the year. These shall result in the development, commercialization and licensing of various technologies and products.

H. CENTRAL PROCUREMENT

The Central Procurement Organisation (CPO) at HPCL has enhanced standardization, competitiveness, efficiency and transparency, including ensuring policy compliance in handling procurement for various SBUs on a centralized basis. CPO ensures the adoption of various government directives/policies to strengthen the ecosystem for MSMEs and promote the indigenization of products and services. It has also helped in effective vendor management.

CPO has actively driven various initiatives undertaken by the Government of India to strengthen the ecosystem for MSEs in the country. Procurement for commonly used goods and services through GeM (Government e-marketplace) was encouraged. The concerted efforts to onboard MSE vendors under TReDS (Trade Receivable Discounting System) resulted in vendor invoices of H 351 Crore being discounted through the platform.

I. QUALITY ASSURANCE

In line with the directive of the Ministry of Petroleum & Natural Gas (MoP&NG), HPCL has a dedicated Quality Assurance (QA) cell with officers posted in all the zones and its functioning is independent of refining and marketing functions. The QA cell carries out surprise inspections covering retail outlets, kerosene (PDS) resellers, LPG distributorships and LPG plants in compliance with the Marketing Discipline Guidelines (MDG) & HQO directives.

During 2022-23, the QA cell carried out inspections at 2,951 retail outlets, 10 kerosene (PDS) resellers, 572 LPG distributorships and 11 LPG bottling plants. The establishment of robust QA systems has enabled HPCL to set high customer service benchmarks for supply locations & channel partners and helped provide high-quality products and services to customers.

J. INFORMATION TECHNOLOGY & DIGITAL INITIATIVES

Information Technology (IT) activities have been aligned with Strategic Business Units (SBUs) to keep pace with ever-growing and dynamic business requirements. During 2022-23, several technological initiatives were undertaken to improve overall efficiencies of operations and deliver greater value to our stakeholders. In order to meet the high computing demand, IT infrastructure was augmented with the latest and most advanced technologies.

Several security upgrade projects were taken up in 2022-23. Apart from traditional signature-based solutions, which have been in vogue for several years, the latest behaviour-based technologies leveraging AI/ML were adopted. These next-generation solutions help in the identification of anomalous/malicious behaviour by any entity and aid in the early detection of a breach. Cybersecurity training was made mandatory for all employees. Several mock phishing campaigns were conducted during the year to identify and educate vulnerable employees.

HPCL has embraced FOSS (Free Open - Source Software) technologies such as enterprise messaging, object storage, API Manager and FOSS databases to meet the changing requirements of service delivery. By leveraging FOSS technologies, HPCL has been able to keep up with the rapidly evolving technology landscape and provide top-notch services to its stakeholders.

The Continuous Integration and Continuous Delivery (CI/CD) methodology has now been integrated with the Software Development Life Cycle (SDLC) and Development, Security and Operations (DevSecOps) approach. The DevSecOPs approach integrates security as a shared responsibility throughout the entire IT lifecycle. With this, HPCL ensures the timely delivery of high-quality software that meets security standards and complies with regulatory requirements.

To have strategic insights into HPCLs refinery plans and operations, the Corporation has implemented an application giving a comprehensive overview of the entire operation, i.e., from ‘Crude to Customer. This application provides both summarized and detailed views of various parameters of refinery operation, such as crude landed cost, crude supplier plan vs. actual uplift, production, inventory, etc. The application helps in making informed decisions and taking proactive measures to improve operational efficiencies.

ERP Modernization

ERP systems help businesses to streamline their operations, improve data management and facilitate collaboration and innovation. The ERP modernization project, aimed at building a robust digital foundation in HPCL, has reached an advanced stage of completion during 2022-23. The project shall benefit the Corporation in enhancing productivity in view of the availability of facilities for handling large amounts of both structured and unstructured data, enhanced real-time analytic capabilities, scalable solutions, better transaction controls, flexibility and versatility.

Digital Initiatives

HPCL has embarked upon a digital transformation journey named ‘Project Parikalp. HPCL is extensively leveraging major digital technologies, viz., Artificial Intelligence & Machine Learning (AI/ML), Augmented & Virtual Reality, IoT, Robotics, etc., across various spheres of business as part of the digital transformation roadmap.

To enable effective inventory management of products across the supply chain, HPCL has implemented an AI/ ML based demand forecasting solution that predicts the demand for various products at the granular level of fuel stations, LPG distributorships and institutional customers with high accuracy. An advanced digital experience centre has been set up at HPMDI-Nigdi to demonstrate the seamless immersive application of various digital technologies. AR/VR-based training and simulation facilities have been installed at Mumbai and Visakh refineries to create a virtual plant environment where employees can undertake training and equipment operations safely before working in the actual plant.

HPCL has undertaken numerous initiatives, including periodic digital maturity assessments, an annual digital conference, comprehensive communication & workforce engagement on digital, periodic quizzes and customized learning & development programs to facilitate the ongoing digital transformation and create an enabling culture and environment, in various areas of digitalization. These efforts are aimed at promoting the effective usage of digital technologies in HPCL, enhancing digital inclusion in the workforce and augmenting digital skills & capabilities.

K. HEALTH, SAFETY & ENVIRONMENT

HPCL is committed to ensuring the best Health, Safety and Environment (HSE) and sustainability practices across all spheres of business activities to achieve the highest standards in the area of HSE and sustainability. The Company has a robust Sustainability Development (SD) framework covering Environment, Social and Governance (ESG) aspects of the Companys operations with a transparent reporting system and continual improvement. HPCL has been making continuous improvements in HSE management systems & procedures with the adoption of new technologies, upgradation of infrastructure, benchmarking of existing practices and regular surveillance audits.

Health

The occupational health and well-being of all employees is a key priority for the Corporation. HPCL undertakes various initiatives on a regular basis to ensure preventive and curative health services for employees and all stakeholders. For preventive health measures, all employees undergo regular periodic medical examinations (PME) and the results are analyzed to provide targeted interventions from qualified doctors. Designated physicians are provided at major locations and smaller locations have tie-ups with local hospitals to ensure the best accessibility of health services. HPCL organizes several health education programs, awareness sessions and diagnostic camps for employees, their families and other stakeholders. Sports activities and marathons were regularly conducted for improved physical strength, reduced stress and social engagement. To promote mental health, an employee assistance program called ‘Paramarsh is in place, which provides virtual mental health counselling services for employees and their family members. Under the aegis of ‘Prerna initiative, HPCL conducts health campaigns for all our contract workers, tank truck crew and LPG delivery staff at various locations.

Safety

HPCL is committed to providing safety to its employees and all stakeholders. To achieve the goal of ‘zero accidents, stringent HSE management systems have been put in place across all locations to strengthen HSE governance and compliance through surveillance audits and benchmarking. Risk management systems are in place to identify potential risks and take protective measures to minimize incidents. HPCL strives for continuous learning and upgrades its systems by leveraging information technology. HPCL implements best industry practices, industry regulations, technologies, tools, materials, etc. to ensure safety in all facets of operations. To ensure safe working across all locations and construction sites, the governance practices of the safety systems and procedures of the critical processes are regularly monitored. At major project sites, dedicated safety teams monitor the safety aspects of construction to ensure focused attention to safety. Well-established emergency response systems and crisis management plans are available to manage any untoward incidents at any operating location.

Environment

HPCL is adopting best-in-class operating systems, practices and procedures oriented to environmental preservation to achieve environmental stewardship. Major installations have adopted environmental management systems to ensure continuous improvement in environmental protection. HPCL also has a process of HSSE audits to ensure compliance with applicable environmental laws and regulations at various locations.

State-of-the-art effluent treatment plants for treating and recycling effluent water are available at major locations to ensure the protection of the environment. Best-in-class technologies such as Volatile Organic Compound (VOC) monitoring and the Leak Detection and Repair (LDAR) programme have been adopted for monitoring and controlling fugitive emissions at major installations. Vapour Recovery Systems (VRS) have been installed at various supply locations and retail outlets. Gaseous emissions to the environment and ambient air quality are continuously monitored with the use of latest technologies, including real-time data transfer to regulatory agencies in major locations. Online monitoring of emissions and air quality has a systems of alerts in place for monitoring and rectifying deviations. Hazardous waste treatment and disposal system are available at various locations in line with industry best practices. Environment awareness programmes are regularly conducted in the Corporation to promote sustainability in all facets of the business. Environment awareness programmes for encouraging rainwater harvesting, reforestation and biodiversity are regularly conducted in the corporation to promote sustainability in all facets of the business. HPCL is actively implementing the action plan for ‘Mission LiFE. Under the mission, HPCL locations are undertaking several public contact programmes to spread awareness and nudge individuals to undertake simple acts in their daily lives that can contribute significantly to improving sustainability practices.

Sustainable Development

HPCL is committed to achieving its ESG objectives by implementing best practices in its operations and activities. HPCL has integrated environmental excellence, transparency, ethical behaviour and corporate social responsibility aspects into its business and operations. The ESG performance has also been benchmarked with national and international peers.

Robust environmental management systems have been established in HPCLs refineries and major marketing locations. With a focus on greening the operations, both refineries and marketing locations are focused on the implementation of sustainability initiatives leading to energy efficiency, water conservation, rainwater harvesting, reuse and recycling of effluents, monitoring and mitigation of GHG emissions, etc.

HPCL has adopted the implementation of a comprehensive rating assessment of its marketing locations by the Confederation of Indian Industry (CII) based on various sustainability parameters, which takes a life cycle approach. As of 31^st March, 2023, 25 locations were assessed and certified with ‘Greenco Rating by CII. HPCL is actively participating in the ‘Mission LiFE movement to bring individual behaviours to the forefront of the global climate action narrative and to meet the objectives of the Countrys sustainable development agenda.

HPCL also discloses the alignment of its initiatives with the UNGC, SDGs and NDCs through its sustainability report. HPCL discloses its sustainability performance in its annual sustainability reports based on Global Reporting Initiative (GRI) standards. The sustainability report can be accessed at https://www.hindustanpetroleum.com/pages/ sustainability.

Renewable Energy

HPCL is actively harnessing renewable energy sources to reduce carbon footprints and electricity costs across the value chain and is continuously expanding its wind and solar power generation capacities. During 2022-23, HPCL has installed a captive solar power capacity of 30.34 MWp across various locations, taking the total solar power capacity to 84.35 MWp as of 31^st March, 2023.

HPCL has also set up a wind power capacity of 100.90 MW, which generated about 18.29 crore KWh of electricity during 2022-23. HPCL has solarized 49% of its retail outlet network and completed the solarization of 4,064 retail outlets during the year, which has led to a total of 10,475 retail outlets being solarized. HPCL has also signed a memorandum of understanding with NTPC Green Energy Ltd. for collaboration in the renewable energy sector.

Bio Fuels

The Government of India, through the National Policy on Biofuels-2018, aims to increase the usage of biofuels in the transportation sector towards energy security and climate change mitigation. In line with the policy, HPCL continues to place emphasis on environmental protection, sustainability measures and reducing Green House Gases (GHG) emissions through the promotion of biofuels. During 2022-23, HPCL achieved ethanol blending of 10.59% by blending

129 crore liters of ethanol in Motor Spirit (MS). HPCL has also sold 2,74,816 KL of Biodiesel blended HSD.

To have a footprint in alternate fuels in the transportation sector, HPCL is actively participating in the Government of Indias SATAT (Sustainable Alternative Towards Affordable Transportation) initiative for the promotion of Compressed Bio Gas (CBG). HPCL had invited Expressions of Interest (EOI) from potential investors and entrepreneurs for setting up CBG plants and offering CBG to HPCL for marketing through the retail network. During 2022-23, HPCL released Letters of Intent (LOIs) for the setting up of 63 CBG plants, taking the total number of LOIs to 476 with a capacity of 943 TMTPA. During the year, one CBG plant under the SATAT scheme has been commissioned and cumulatively, four CBG plants have commenced CBG production.

HPCL is constructing a Second-Generation ethanol biorefinery at Bathinda, Punjab with a production capacity of 100 kilolitres per day of ethanol from biomass.

HPCL is setting up a Compressed Biogas (CBG) plant of 14 TPD capacity at Budaun, Uttar Pradesh, using rice straw as feedstock. The plant will have the provision to convert part of the organic manure to ‘Phosphate Rich Organic Manure to have better economic returns. CBG produced from the plant shall be sold through HPCL retail outlets. The plant has been mechanically completed and pre-commissioning activities are in progress. Additionally, HPCL is setting up a Compressed Biogas (CBG) plant with 100 TPD of cow dung processing capacity under the CSR scheme at Pathmeda, Rajasthan.

L. GOVERNANCE

Corporate Governance

A separate segment on corporate governance forms part of the annual report. However, it would be relevant to point out here that the Corporation is giving utmost importance to compliance with corporate governance requirements including compliance with regulations, transparent management processes and adherence to both internal and external value norms. HPCL has implemented a robust grievance redressal mechanism.

Internal Control Processes

The Corporation has an independent Internal Audit department. The Internal Audit department consists of professionally qualified officers from finance and technical functions, supplementing the internal control processes through an extensive audit program. The internal audits are carried out across all the spheres of business operations of HPCL to review the implementation of business processes and control. Internal audits are carried out as per the annual audit program approved by the Audit Committee of the Board and significant audit observations are periodically reviewed by the Audit Committee of the Board.

Risk Management

In the Corporations pursuit to maintain a customer-centric business approach and grow stakeholders value, HPCL is committed to proactively managing the emerging Risks impacting its strategic business objectives and performance. Businesses at HPCL are synchronizing with Enterprise Risk Management (ERM) processes to facilitate the achievement of its business strategies and provide guidance to daily operations. An optimized mix of bottom-up and top-down approaches has been deployed to gather risk insights covering Strategic Business Units (SBUs), functions and projects. To empower Risk enabled decision-making, risk considerations are embedded into the rhythm of the business, including the strategic business planning process, so that risk-informed initiatives and programmes are part of day-to-day operations. Keeping with leading global best practices, technology remains at the forefront to support the Enterprise Risk Management processes with a focus on optimizing risk exposures and automating risk reporting across the organization. The digital IT platform provides an enterprise-wide view of risks and mitigation plans, which enables the receipt of continuous risk insights through the monitoring of key parameters. This allows gathering insights on proactive risk-health triggers and reduces performance variability through prompt action rather than having a detective or reactionary approach to risks.

The Risk Management Committee (RMC) continues to provide direction and guidance to the operating management. The RMC ensures a robust framework for the identification of risks with a special focus on financial, operational, sectoral, ESG and cyber risks; measures for risk mitigation; systems of internal control and business contingency plans and spearheads the Risk Management initiative within the Corporation. The risk registers and risk profiles are regularly reviewed by RMC to identify emerging risks and monitor the progress of implementation of various mitigation steps. The RMC advises business units and corporate functions on risk initiatives and monitors emerging issues and shares best practices. The RMC also shares regular updates with the Board regarding all aspects of risk management. RMC besides reviewing the risk reports on a periodical basis also encourage businesses to foresee risks in advance, which when managed well, can contribute to risk-free performance and growth.

Integrity Pact

HPCL has signed MoU with ‘Transparency International and has implemented the Integrity Pact with effect from 1^st September, 2007. The Integrity Pact is an integral part of the procurement process for all tenders H 1 Crore and above. The Corporation has complied with the ‘Integrity Pact (IP) to enhance ethics and transparency in the process of awarding contracts.

Right to Information (RTI)

HPCL is a Public Authority under the RTI Act 2005 and complies with all the requirements of the Right to Information Act 2005. HPCL receives and handles RTI requests through the RTI online portal at www.rtionline.gov.in, which is the unified RTI portal of the Government of India. Regional Managers/ Head of Departments across the country, representing different Functions have been appointed as Central Public Information Officers (CPIOs) and Senior Management as the First Appellate Authorities (FAAs) to handle the RTI requests/ First Appeals received from Indian Citizens. The statutory provisions of the RTI Act 2005 are duly complied with, including related proactive disclosures.

Vigilance

The vigilance mechanism in HPCL is based on the guidelines from the Central Vigilance Commission (CVC) on vigilance management in public sector enterprises and instructions issued from time to time by the Department of Personnel and Training (DoPT) as well as the administrative ministry i.e., Ministry of Petroleum & Natural Gas (MoP&NG). Vigilance complaints are handled as per the complaint handling policies stipulated in the Vigilance Manual of CVC.

Under preventive vigilance, various activities are conducted by HPCL including surprise and regular inspections, study of systems & procedures and regular interaction with employees, stakeholders & public at large. The vigilance department based on the learnings from cases and review of systems and procedures provides inputs to management for systemic improvements to enhance transparency and control. In addition, the Vigilance department also undertakes initiatives for creating public awareness by conducting active interactive sessions in schools & colleges, promoting ethical values & sharing case studies with employees through the in-house Vigilance publication ‘Jagaran and observing vigilance awareness week every year.

Global Compact

HPCL is also a member of the Global Compact Society of India, which is the unit of the UN Global Compact, the largest voluntary corporate initiative in the world. It offers a unique platform to engage companies in responsible business behaviour through the principles of Human Rights, Labour Standards, Environmental norms and Ethical practices. All these areas receive constant attention from the management to ensure continuous compliance.

M. HUMAN RESOURCE MANAGEMENT

HPCL recognizes the value of human resources in delivering accelerated performance and contributing to the growth of the organization. Human resources activities are aimed at higher engagement levels, a conducive environment for employees to thrive and helping them deliver excellence in their job roles. Guided by the vision and overall strategy of HPCL, the focus is to build an agile and future-ready workforce by establishing strong linkages between employees, processes, organizational values and corporate strategies.

Talent Acquisition and Management

HPCL follows robust and transparent processes in attracting, assessing and sourcing prospective employees to find the perfect match for the Companys long-term goals.

During the year, HPCL on-boarded 108 officers across various functions like engineering graduates, chartered accountants, R&D professionals, company secretary professionals and HR professionals. HPCL participated in the Government of Indias ‘Rozgar Mela initiative, which aims to provide employment to around 10 lakh people.

HPCL has taken concerted efforts to improve the recruitment experience for candidates through the conduct of regular webinars detailing the stages of the recruitment process in detail.

Capability Building

The Capability Building Department is focused on delivering learning interventions efficiently and equitably to employees by leveraging technology and utilizing a variety of learning methods to create superior learning experiences. The interventions are aimed at continual capability building of employees for ensuring optimal organizational performance.

During the year, HPCL made use of multi-modal training methodologies such as webinars, web series, experiential workshops, e-modules, certifications, simulations, action learning and drama-based workshops. The activities have helped in creating value for business functions through progressive learning and building the capabilities of employees.

During 2022-23, HPCL imparted 44,375 training man-days to management employees through various capability-building interventions, i.e., around 8.1 training man-days (65 hours) per officer.

To achieve the intended objectives, various capability-building initiatives are in progress.

‘HP Possible, the flagship and unique 11-month leadership development program, was launched in 2022-23 and aimed at building leadership competencies in future leaders. Towards this end, HPCL has collaborated with the leading national academic institutions for assessing business competencies and delivering learning experiences. The first batch of 50 senior leaders is currently undergoing the program.

‘Vista - Agla Kadam is a role-based competency framework, learning and development curriculum model. Nearly 3,900 officers have been introduced to the model for enhancing the technical and behavioural competencies of junior management officers.

‘Anand is a holistic wellness initiative for HPCL officers. ‘AMZ?X , is derived from ‘AMHMA, {Z?M ED? XOH. The first program under the initiative, ‘Building Resilient Leaders, designed for millennials under the age of 35, has been conducted for over 400 officers. The intervention, spread over a period of six months, includes online personal assessments, fortnightly webinars and one-to-one personal coaching through professional counsellors.

‘Project Utkarsh is aimed at bringing about significant productivity improvements by fostering collaboration, building ownership and imparting knowledge and skills. The project helps improve overall efficiency by implementing a collaborative approach of Total Quality Management, Total Productivity Management, Six Sigma & Participative Management. The objective of the initiative is to enable the employees to achieve excellence consistently through the involvement of frontline workers and managers in a collaborative manner.

HPCL also accords the highest priority to the safety and security of all stakeholders including employees and has targeted interventions such as ‘Ekagra and ‘Surakshit for process standardizing in security and safety systems, capability building of officers and stakeholders, training in the latest technological surveillance systems and other automation, etc.

HPCL is committed to developing the capabilities of its employees across all levels of management in various SBUs. Focused interventions such as ‘Prerna, ‘Prerana Realtics, ‘Shreshtha, ‘Daksh and ‘Lakshya help to upskill the functional and behavioural competencies of employees. These interventions focus on understanding oneself, understanding the role, dealer management, sales profiling sessions, network management, real estate management, processing various sales data, training on managerial development needs and cutting-edge managerial and techno-behavioural skills.

HP Academy

The e-learning platform, ‘HP Academy, with provision to administer, monitor and track online training for employees, continued to be leveraged in 2022-23 towards training employees. The platform is being upgraded for enhanced user experience through the incorporation of improved analytics, an improved user interface and integration with Google Analytics and Zoom. The platform hosts over 1,970 hours of learning content, including over 601 technical and behavioural online courses and inspirational videos.

Digital libraries such as EBSCO and Magzter continue to be available on the ‘HP Academy platform, which hosts a collection of scientific journals, eBooks, business magazines, audio books and a wide range of online reading materials.

Tie-ups with Academic Institutes

HPCL entered into an MOU with CoE/Premier Institutes (IIT Bombay, IIM Calcutta, IIM Bangalore, IIM Amritsar, IIM Nagpur, IIM Raipur, IIM Rohtak, IIM Sirmaur, IIM Indore, IIM Trichy, XLRI, RGIPT, IIFT, UPES, PDPU, etc.) to promote industry-academia collaboration and to build the technical and behavioural capabilities of HPCL employees.

Performance Management

HPCL has a robust performance management system for objective assessment, career progression and development of individuals based on the Balanced Score Card Methodology. The performance management system helps employees effectively work towards aligned organizational goals.

The performance management department established a culture in which individuals and groups take responsibility for the continuous improvement of business processes and of their own skills and contributions. Towards achieving this aim, HPCL has implemented strong internal processes for managing the performance and aspirations of its employees. The clarity in the process flow, periodic review and feedback have enabled a transparent and strong performance management system.

Reward & Recognition

The reward and recognition schemes in HPCL are aimed at enhancing employee engagement and creating a more positive overall workplace, leading to many benefits for the Company, including increased productivity and retention. Towards this direction, the ‘HPCL ICON-People Manager Award has been instituted to recognize the leaders who take responsibility for finding potential in people and have the courage to develop that potential. During 2022-23, 36 leaders were recognized as ‘HP ICON-2022.

‘HP Outstanding Achievers Recognition has been instituted to recognize outstanding achievements of officers in the junior management category. The recognition is intended to identify and recognize officers who have lived and displayed HP FIRST values, displayed extraordinary commitment, delivered extraordinary performance and achieved outstanding results during a particular year, in line with the corporations business interests.

The ‘HP Gaurav Awards recognize outstanding efforts, sustained excellence in work, commitment, adherence to safety measures and adherence to high standards of conduct in the discharge of duties amongst the non-executive category of employees. During 2022-23, 78 employees were felicitated with the HP Gaurav Award.

Industrial Harmony

HPCL takes pride in having cordial & productive relationships with employee unions. Effective grievance management systems, fairness and an emphasis on transparency have resulted in the alignment of unions and employees with the corporations vision. Constructive meetings were regularly conducted with unions to ensure employees participation in the decision-making process.

In 2022-23, a new career development policy was signed with the unions representing non-management employees in the marketing division. Modifications in various clauses of the Certified Standing Order of Mumbai Refinery were certified by the Competent Authority after mutual discussions with unions representing workmen. Harmonious industrial relations have been sustained through continual and proactive engagement with the unions representing the workmen across the Corporation. With a view to encouraging the engagement level of outsourced workers in the Corporation and encouraging meritorious children, the ‘Merit Scholarship Scheme was introduced during the financial year for the grant of onetime scholarships to meritorious children of contract workers who passed 10^th/12^th, or Diploma/Degree.

HPCL has also taken action to extend coverage to direct and indirect stakeholders with medical insurance coverage, ex-gratia compensation in case of untoward accidents, organizing special medical camps, etc., even post-pandemic.

Employee Engagement Initiatives

Employee engagement initiatives are conducted with the objective of creating an emotionally and psychologically safe work environment across locations. Towards this objective, the digital platform ‘HP Pariwarcontinues to be extensively used to connect employees and families. Various programmes were conducted in 2022-23 with the active use of the platform. As a part of the employee engagement initiative, HPCL employees/families participated in endurance events such as Trail Walker, Marathon and walkathon challenges during the year.

‘Reboot@35+ was undertaken for officers in the age group of 35 to 50 years and focused on self-development in personal, professional, family and social domains with mindfulness as its core theme. Under the aegis of ‘Reboot@35+, walkathons/ Marathons for employees and families were conducted apart from other engagement activities.

‘HP Sampark, the employee volunteer program of HPCL, has been created to channel the volunteering spirit of the HP Family to contribute time and skill and to nurture inclusiveness, societal good and the health of the community. The program with the support of 58,269 HP Sampark volunteers, touched around 2.67 lakh lives since inception. Employee contributions in 2022-23 helped over 62,440 people in the community. ‘Youphoria is an engagement and development platform among seven oil and gas CPSEs under the aegis of MOP&NG and Skill Development. The platform is targeted specifically at young executives under 35 years of age. This platform aimed to develop, leverage and channel the creative energy of youth in the oil and gas sector. During 2022-23, HPCLs employees participated in various events organized under this forum.

‘Yuvantage is a youth engagement initiative of HPCL aimed at the holistic development of young officers by enhancing their managerial, behavioural and technical competencies. During the year, various programmes such as ‘Spark, ‘Corporate Ranneeti, ‘Foundation Day Activities, ‘Anand activities and hobby club activities were organized under the Yuvantage platform.

‘HumRahee, the virtual platform of HPCL, focuses on interaction and gaining insights from one another in a safe environment. ‘HumRahee Sessions help participants learn about themselves and their well-being through their interactions with each other and it gives them strength and courage to deal with their own concerns.

A 24x7 Employee Assistance Programme (EAP), ‘Paramarsh was continued during the year to provide counselling services to employees, their spouses and dependent children. HPCL has developed its very own first-of-its-kind podcast medium, christened ‘HP POD. The podcast medium facilitates learning ‘on the go and fosters engagement, leading to greater connections across teams and employees.

Corporate Communication

The corporate communication department is responsible for ensuring that the Companys messaging is clear, consistent and aligned with the companys business goals and objectives. The department plays a critical role in managing the companys reputation and image, both internally and externally. By leveraging both internal and external communication tools, HPCL builds trust, enhances its reputation and creates a positive impact on society while achieving business goals.

During 2022-23, mega events such as Energy Technology Meet, India Energy Week, multitudes of events under Azadi Ka Amrit Mahotsav, Har Ghar Tiranga, World Biofuel Day, Saksham 2022, Iconic Week of DPE, etc. were organized and hosted/co-hosted by HPCL for increased visibility, branding, awareness and engagement amongst its employees and stakeholders.

Prevention of Sexual Harassment at Workplace (POSH)

To inculcate appropriate workplace behaviour and promote gender sensitization, a number of online POSH workshops were organized across the Corporation during 2022-23. Guidelines are also framed with regard to the procedure to be adopted while conducting an inquiry by Internal Complaint Committees (ICC) for handling any complaints.

SC/ST/OBC/PwD Welfare Programs

HPCL adheres to the Presidential Directives along with guidelines issued by Government of India for reservation in services of persons falling under the category of SCs/STs/ OBCs/PwD/EWS .

To support diversity and promote inclusive growth, a host of engagement activities are taken up throughout the year. Each year, special learning initiatives are undertaken for the growth and development for SC/ST/OBC employees.

Further, in compliance with the provisions of The Rights of Persons with Disabilities Act, 2016, Equal Opportunity Policy is framed and displayed in Employee Portal to promote an inclusive workplace culture, safeguards for the rights of persons with disabilities to be treated with dignity, respect a equal terms and conditions of employment.

Promotion of Sports Activities

HPCL plays a significant role in the promotion of sports and regularly hosts and participates in various tournaments for the Petroleum Sports Promotion Board (PSPB) and the All-India Public Sector Sports Promotion Board (AIPSSPB). HPCL also organized various internal tournaments during the year to promote sports. The Sports Portal was launched during the Annual Sports Meet 2022-23 and helps in managing the sports activities in HPCL.

HPCL hosted the 42^nd Inter Unit PSPB Bridge Tournament at Amritsar, the 41^st PSPB Inter Unit Athletics Meet at Kolkata and the AIPSSCB All India Inter Unit Badminton Tournament at Bengaluru. HPCL also participated in PSPB tournaments in various sports disciplines. In 2022-23, HPCL won the team championship in the PSPB swimming tournament and the team champion (in the unrated category) in the PSPB chess tournament.

Official Language Implementation

HPCL promotes the usage of Hindi by motivating employees through sensitization, persuasion and incentives. To recognize the linguistic and cultural talent of the employees and to create awareness about Hindi, various programmes are regularly conducted. The programmes include Hindi Competitions, Hindi Fortnights, Official Language Conferences, Hindi Workshops, etc.

HPCL was conferred with the ‘Petroleum Rajbhasha Shield-First Prize for implementation of the Official Language for the year 2021-22 by MOP&NG for the best performance in the field of Offical Langauge Implementation (OLI) amongst oil PSUs. HPCL has been the central coordinator for the Town Official Language Implementation Committee (TOLIC) of Mumbai-based PSUs since 1983 and has been consistently guiding 65 Mumbai-based PSUs in the field of the official language implementation. Besides TOLIC meetings, HPCL has trained the officials of different PSUs through various programmes such as Hindi translation, promotion of Hindi and regional languages, etc.

N. CORPORATE SOCIAL RESPONSIBILITY (CSR)

HPCLs efforts to ensure mandated expenditures on CSR reaffirm the continuing commitment of the Corporation toward societal development. HPCL implemented various activities under the focus areas of childcare, education, health care, skill development, sports and environment and community development.

HPCL implemented more than 100 CSR projects under the annual common theme ‘Healthcare in line with the Guidelines on CSR Expenditure by the Department of Public Enterprises, Government of India. Across the country, various medical devices and equipment were procured and provided to primary healthcare centres, community healthcare centres and district hospitals to meet the grassroots healthcare needs in local and remote areas surrounding our business locations.

Under Project ‘ADAPT, HPCL endeavored to enhance the quality of life of Children with Special Needs (CwSN) through education, individual training and therapeutic treatment. Under Project ‘Nanhi Kali, adolescent girls were provided with remedial classes, material kits, sports curriculum training and counselling sessions on personal hygiene and career development.

HPCL distributed more than 16,000 scholarships to students from various socially and economically disadvantaged sections like SC, ST, OBC and PwD across the country, giving support to students for their education from school level to professional courses.

HPCL continued its collaboration with the Indian Army for Project ‘Kashmir Super-50 Medical. Under the project, aspiring students from the UT of Jammu & Kashmir are provided mentoring and coaching for the medical stream.

HPCL collaborated with the Indian Army for Project Ladakh Ignited Minds: Super-45 ‘Medical and Engineering for the less-privileged students of the UT of Ladakh. Under this project, HPCL supports the Indian Armys initiative to ‘Winning Hearts and Minds of the local population. This project supports the less-privileged yet aspiring students of the Ladakh region by enabling them to compete in various streams like engineering, medicine and other career-oriented programmes. The year saw the commencement of similar residential projects in the Kargil district of the UT of Ladakh exclusively for girl students and in the Rajouri district of the UT of Jammu & Kashmir for coaching the deserving youth in streams like engineering, medicine and other career-oriented programmes.

To provide basic healthcare facilities in remote rural areas, mobile medical vans were operated under ‘Project Dhanwantari to provide diagnosis, treatment and health awareness at the doorsteps of less privileged people. Under Project ‘Dil without Bill, support was extended for conducting heart surgeries on beneficiaries from lower-economic sections, with a special focus on children.

HPCL-supported Skill Development Institutes (SDI), conceptualized by the Government of India and operationalized by Oil & Gas CPSEs, focus on imparting skills in industry-oriented trades for improving the employability of weaker sections of society. SDI Visakhapatnam is being managed by HPCL with the support of other oil & gas CPSEs. More than 3,800 students were trained in various trades for their employment enhancement at SDI Visakhapatnam.

O. JOINT VENTURE COMPANIES AND SUBSIDIARIES

HPCL also conducts business through Subsidiaries and Joint Venture companies in various areas including oil refining and petrochemicals, value-added bituminous products, marketing of POL products, POL pipelines, natural gas pipelines, LPG pipeline, City Gas Distribution (CGD), LPG cavern, LNG terminal, Aviation fuel farm facilities and biofuels. The brief about the performance of Joint Ventures and Subsidiaries during the year 2022-23 is given below:

HPCL-Mittal Energy Ltd. (HMEL)

HPCL-Mittal Energy Ltd. (HMEL) is a joint venture between HPCL and Mittal Energy Investments Pte. Ltd., Singapore, with an equity holding of 48.99% each.

HMEL is a leading integrated refining and petrochemical company in India, with operations that span crude oil refining, petrochemical production and marketing. It owns and operates an 11.3 MMTPA Guru Gobind Singh Refinery (‘GGSR) at Bathinda, Punjab, which produces refined petroleum products. HMEL has set up a petrochemical facility, the Guru Gobind Singh Polymer Addition Project (GGSPAP), within the existing GGSR premises at Bathinda, Punjab. The complex comprises a 1.2 MMTPA multi-feed world-class cracker unit along with associated downstream polymer units which produce LLDPE, HDPE, butene and polypropylene (PP). HMEL now has a combined capacity of 2.2 MMTPA of polymers, which includes world-class grades of HDPE, LLDPE, PP-HP, PP-RCP and PP-ICP.

GGSPAP would increase the oil-to-chemicals ratio for HMEL while diversifying the offering to include petrochemicals, reducing its dependence on a single commodity cycle of fuel products.

During 2022-23, the company achieved a crude throughput of 12.735 MMT. Consolidated total revenue of Rs. 96,285

Crore and PAT of Rs. 4,898.60 Crore have been achieved during the year. HMEL paid an interim dividend of 12.69% for 2022-23.

As part of its focus on creating long-term value for its stakeholders, HMEL is developing a roadmap to integrate ESG (Environment, Social & Governance) aspects with its business objectives. HMEL is also executing a 300 KLPD grain-based bioethanol plant with 1G technology at Bathinda. Construction activities have commenced during 2022-23.

South Asia LPG Company Pvt. Ltd. (SALPG)

SALPG is a joint venture between HPCL and Total Energies Marketing Holdings India, with equity holdings of 50% each. SALPG owns and operates an underground LPG cavern with 60 TMT capacity and associated receiving and dispatch facilities at Visakhapatnam.

During 2022-23, SALPG achieved a throughput of 1.54 MMT. SALPG has achieved total revenue of H 164 Crore and recorded a PAT of Rs. 80.69 Crore.

SALPG has been continuously paying dividends for the last 13 years. SALPG paid an interim dividend of 20% and recommended a final dividend of 55% for 2022-23.

SALPG bagged the EHS Excellence Award-2022 as a sectoral topper gold award in storage and distribution from the CII-SR (Confederation of Indian Industry Southern Region)

Prize Petroleum Company Ltd. (PPCL)

Prize Petroleum Company Ltd. (PPCL) is a wholly-owned subsidiary of HPCL. PPCL is the upstream arm of HPCL and is in the business of Exploration and Production (E&P) of hydrocarbons as well as providing services for the management of E&P blocks. PPCL has a wholly owned subsidiary, namely Prize Petroleum International Pte Ltd. (PPIPL), incorporated in Singapore. PPIPL has participation interests of 11.25% and 9.75% in two E&P blocks [T/L1 and T/18P (retention leases T/RL2, T/RL4 & T/RL5) respectively] in Australia. During 2022-23, PPIPL achieved its share of production of 114,106 BoE (Barrels of Oil Equivalent) from the Yolla producing field (T/L1).

During 2022-23, PPCL recorded total revenue of H 51Crore on a consolidated basis.

Hindustan Colas Pvt. Ltd. (HINCOL)

HINCOL is a Joint Venture of HPCL and Colas S.A., France, with an equity shareholding of 50% each. HINCOL is engaged in the manufacturing and marketing of bitumen derivatives, which are widely used in road/airfield construction in India. In addition to bitumen derivatives, it also carries out niche road maintenance activities like micro surfacing and slurry sealing. HINCOL owns and operates 10 strategically located manufacturing plants complying with the requirements of International Standards ISO 9001:2015, 14001:2015 and 45001:2018.

During 2022-23, HINCOL recorded a sale of 307 TMT and achieved a consolidated total revenue of Rs. 1,537 Crore and a PAT of Rs. 155.35 Crore. HINCOL has been paying dividends for the last 23 years. HINCOL paid an interim dividend of 1000% for 2022-23.

During the year, HINCOL developed new products ‘Bond Coat (for Tack coat applications), Road Seal (for sealing concrete joints), CAM Emulsion (for Cement Asphalt Mortar to be used in Bullet Train project), Chip Seal Emulsion (for surface treatment of low traffic Roads) and customized Performance Grade Bitumen for various customers.

HINCOL commenced its operations at the new bitumen storage terminal at Haldia Port during 2022-23. The company is in the final stages of completing the construction of its new bitumen storage terminal project at Mangalore Port.

HPCL Rajasthan Refinery Ltd. (HRRL)

HRRL is a joint venture of HPCL and the Government of Rajasthan, with 74% equity participation by HPCL and 26% by the Government of Rajasthan. HRRL is setting up a 9 MMTPA greenfield refinery and petrochemical complex in the state of Rajasthan. The capacity includes 2.4 MMTPA of petrochemicals of various grades.

Orders for major process units & packages have been placed and construction of various process units and packages is in progress. The fabrication and laying of three cross-country pipelines are in progress. Fabrication has been completed for seven out of eight long-lead items and six long-lead items have been received and installed at the site. HRRL achieved 133 million man-hours of safe construction operations as of 31^st March, 2023.

Mangalore Refinery and Petrochemicals Ltd. (MRPL)

MRPL is a Joint Venture of HPCL and ONGC, wherein ONGC holds 71.63% of equity, HPCL holds 16.96% equity and the balance of equity is held by the public. MRPL is a Schedule ‘A Miniratna, Central Public Sector Enterprise (CPSE) and operates a 15 MMTPA refinery at Mangaluru in Karnataka.

During 2022-23, MRPL achieved its highest-ever crude throughput of 17.1 MMT. This translates to a refinery capacity utilization of 114%. Erstwhile subsidiary OMPL was merged with MRPL with an effective date of 1^st May, 2022.

MRPL recorded consolidated total revenue of Rs. 1,24,926 Crore and PAT of Rs. 2,655.41 Crore.

Ratnagiri Refinery and Petrochemical Ltd. (RRPCL)

RRPCL is a Joint Venture Company promoted by IOCL, BPCL and HPCL with equity participation in the ratio of 50:25:25. RRPCL has planned to set up an integrated refinery cum petrochemical complex at the west coast of Maharashtra. Saudi Aramco and ADNOC have also signed an MOU to partner with RRPCL to jointly execute the project along with IOCL, BPCL and HPCL.

The pre-project activities are in progress.

HPCL Biofuels Ltd. (HBL)

HBL is a wholly owned subsidiary company of HPCL. HBL was promoted as a backward integration initiative to enable HPCLs foray into the manufacturing of ethanol for blending in Petrol. HBL has two integrated Sugar-Ethanol-Cogeneration plants in the Sugauli and Lauriya districts in the state of Bihar.

During 2022-23, HBL recorded total revenue of Rs. 302.61 Crore and the highest cane crushing of 852.86 TMT. HBL achieved the highest ever sugar production of 72,152 MT, the highest ever ethanol production of 14,967 KL and power generation of 68,056 MWh during 2022-23. HBL also achieved its highest-ever domestic sales of sugar of 65,002 MT during 2022-23. 5,728 MT of sugar was exported to Zambia, Sudan and Nepal during 2022-23. HBL is in the early stages of expanding its distillation and allied facilities to produce ethanol out of grains and farm feed.

Petronet MHB Ltd. (PMHBL)

PMHBL is a Joint Venture of HPCL and ONGC, with equal equity holdings of 49.996% each. PMHBL owns and operates a multiproduct petroleum pipeline to transport MRPL refinerys petroleum products to various parts of Karnataka.

During 2022-23, PMHBL achieved a throughput of 3.89 MMT and reported total revenue of Rs. 168 Crore and a PAT of Rs. 84.72 Crore.

PMHBL Integrated Management System (IMS) is certified for Quality Management System-ISO-9001:2015, Environmental Management System-ISO-14001:2015, OHSMS ISO–18001:2018 and Energy Management System ISO-50001-2018. The company deployed various updated technologies and solutions for its operations as per international standards.

PMHBL paid an interim dividend of 14.6% for 2022-23.

Bhagyanagar Gas Ltd. (BGL)

Bhagyanagar Gas Ltd. (BGL) is a Joint Venture of HPCL and GAIL with equal equity holdings of 48.73% each.

BGL has a CGD network comprising 2,434 km of MDPE pipeline and 182 km of steel pipeline and has provided 3,00,563 domestic connections. BGL also operates 135 CNG stations in the cities of Hyderabad, Vijayawada and Kakinada in the states of Andhra Pradesh and Telangana.

During 2022-23, BGL has achieved sales volumes of 40,953 MT of CNG and 298.20 Lakh Standard Cubic Metres (SCM) of PNG. BGL has recorded total revenue of Rs. 447 Crore and

PAT of Rs.3.52 Crore during the year.

Aavantika Gas Ltd. (AGL)

Aavantika Gas Ltd. (AGL) is a Joint Venture of HPCL and GAIL with equal equity holdings of 49.99% each.

AGL has a CGD network comprising 2,835 km of MDPE pipeline and 106 km of steel pipeline and has provided 1,42,023 domestic connections. AGL also operates 100 CNG stations in the cities of Indore, Ujjain, Pithampur and Gwalior in the state of Madhya Pradesh.

During 2022-23, AGL has achieved sales volumes of 42,289 MT of CNG and 565.15 Lakh SCM of PNG. During the year, AGL commenced the sale of CBG and sold 849.40 MT of CBG. AGL has also reported total revenue of Rs. 633 Crore and PAT of H 58.93 Crore during the year.

During the year, AGL has been awarded ‘CGD Company of the Year 2022 by ET Energy World.

GSPL India Gasnet Ltd. (GIGL)

GSPL India Gasnet Ltd. (GIGL) is a Joint Venture of Gujarat State Petronet Ltd. (GSPL), Indian Oil Corporation Ltd. (IOCL), Bharat Petroleum Corporation Ltd. (BPCL) and HPCL. HPCL has 11% equity participation in the company and the balance of equity is held by GSPL (52%), IOCL (26%) and BPCL (11%).

GIGL has been authorized to lay two cross-country gas pipelines: the Mehsana-Bathinda Pipeline (MBPL) and the Bathinda-Jammu-Srinagar Pipeline (BJSPL). PNGRB has approved the foreclosure of BJSPL at Gurdaspur, which will now be the Bathinda-Gurdaspur Pipeline (BGPL).

The initial sections of the projects, viz., Barmer-Pali Pipeline, Palanpur-Pali Pipeline and Jalandhar-Amritsar Pipeline, are in operation from 2018-19 onwards. GIGL has successfully commissioned all sections of the MBPL-Phase II Project except Section V. During 2022-23, the company transported about 1,242.26 MMSCM of gas and recorded total revenue of H 225 Crore.

GSPL India Transco Ltd. (GITL)

GSPL India Transco Ltd. (GITL) is a Joint Venture of GSPL, IOCL, BPCL and HPCL. HPCL has 11% equity participation in the company and the balance of equity is held by GSPL (52%), IOCL (26%) and BPCL (11%).

GITL has been authorized to lay a 1,881 km pipeline from Mallavaram to Bhilwara. The initial section of the project from Reliance Gas Transmission India Limiteds interconnection point at Kunchanapalli to Ramagundam Fertilisers & Chemicals Limiteds plant at Ramagundam has been commissioned in 2019-20. During 2022-23, the company transported 586 MMSCM of gas and earned revenue of Rs. 113 Crore through transportation.

Godavari Gas Pvt. Ltd. (GGPL)

GGPL is a Joint Venture between Andhra Pradesh Gas Distribution Corporation Limited (APGDC) and HPCL with equity stakes in the ratio of 74:26.

GGPL has been formed to develop and operate a CGD network in the East Godavari and West Godavari districts of Andhra Pradesh. GGPL has a CGD network comprising 640 km of MDPE pipeline and 110 km of steel pipeline and has provided 1,00,907 domestic connections. GGPL also operates 33 CNG stations and 1 MS/HSD retail outlet (HPCL Dealership) in the East Godavari and West Godavari districts of Andhra Pradesh.

During 2022-23, GGPL achieved sales volumes of 2,734 MT of CNG, 71.53 lakh SCM of PNG and 656 KL of MS and HSD. GGPL recorded total revenue of Rs. 61 Crore during the year.

HPOIL Gas Pvt. Ltd. (HOGPL)

HPOIL Gas Pvt. Ltd. (HOGPL) is a Joint Venture between HPCL and OIL India Ltd. (OIL) with equity shareholdings of 50% each.

HOGPL has been formed to develop and operate CGD networks in the geographical areas of Ambala-Kurukshetra districts in the state of Haryana and Kolhapur district in the state of Maharashtra. HOGPL has a CGD network comprising 923 km of MDPE pipeline and 168 km of steel pipeline and has provided 47,217 domestic connections. HOGPL also operates 2 City Gate Stations and 40 CNG stations in the geographical areas of Ambala-Kurukshetra districts in the state of Haryana and Kolhapur district in the state of Maharashtra.

During 2022-23, HOGPL achieved a sales volume of 14,419 MT of CNG, registering a growth of 122% over the previous year. HOGPL also achieved a sales volume of 15.84 lakh SCM in PNG, registering a growth of 994% over the previous year. HOGPL recorded total revenue of Rs. 131 Crore and PAT of Rs. 6.64 Crore of during the year.

HPCL LNG Limited (HPLNG)

HPCL LNG Limited (HPLNG), erstwhile HPCL Shapoorji Energy Private Limited (HSEPL), became a 100% subsidiary of HPCL on 30^th March, 2021, subsequent to the acquisition of a 50% stake from SP Ports Private Limited (SPPPL). The company was converted into a public limited company effective 10^th September, 2021 and its name was changed to HPCL LNG Limited.

The company has been formed to build and operate a 5 MMTPA greenfield LNG regasification terminal at Chhara Port in the Gir Somnath district of Gujarat. Major facilities at the LNG terminal include marine facilities for the berthing and unloading of LNG carriers, storage tanks, regasification facilities and associated utilities.

The mechanical completion of the terminal was achieved in March 2023.

Mumbai Aviation Fuel Farm Facility Pvt. Ltd. (MAFFFL)

Mumbai Aviation Fuel Farm Facility Pvt. Ltd. (MAFFFL) is a Joint Venture of Mumbai International Airport Private Limited (MIAL), IOCL, BPCL and HPCL with equity holdings of 25% each.

The company has constructed, commissioned and is operating a new Integrated Fuel Farm (IFF) facility at Mumbai Airport on an open-access basis. The business of the company is to operate & maintain aviation fuel farm facilities and to provide Into Plane services at Chhatrapati Shivaji Maharaj International Airport (CSMIA), Mumbai.

MAFFFL achieved a throughput of 12.12 lakh KL during 2022-23, registering a growth of 62% over the previous year. The company has registered total revenue of Rs 115 Crore and PAT of Rs. 32.01 Crore during 2022-23.

HPCL Middle East FZCO (HMEF)

HPCL Middle East FZCO (HMEF), a wholly owned subsidiary of HPCL, markets lubricants and other petroleum products across various markets in the Middle East and Africa. The company is registered under the Dubai Airport Free Zone Authority (DAFZA) and has a trade license for trading in lubricants and greases, petrochemicals and refined oil products.

HMEF has registered a sale of 1,221 MT of value-added lubricants, recording a growth of 20% over the previous year with a total revenue of 9.03 million AED (Rs. 19.8 Crore) during the year.

IHB Ltd. (IHBL)

IHB Ltd. (IHBL) is a Joint Venture company promoted by IOCL, BPCL and HPCL with equity participation in the ratio of 50:25:25.

IHBL was incorporated to construct, operate and manage the ~2,800 km long Kandla-Gorakhpur LPG Pipeline, the longest LPG pipeline in the world, for meeting the LPG demand of the bottling plants en route to the pipeline in Gujarat, Madhya Pradesh and Uttar Pradesh. The project is progressing at a steady pace.

P. AWARDS RECEIVED

During the year 2022-23, HPCL was conferred with a number of awards and recognitions at various forums. The following is the list of awards received by HPCL during the year:

1. ‘Company of the Year for excellence in Human Resource Management by Federation of Indian Petroleum Industry (FIPI) awards 2022

2. ‘Sustainably Growing Corporate of the Year by Federation of Indian Petroleum Industry (FIPI) awards 2022

3. ‘National CSR Awards 2020 under the category ‘Companies having eligible CSR spend equal and above Rs. 100 Crore by Ministry of Corporate Affairs, GoI

4. ‘Rajbhasha Shield Pratham Puraskar for exceptional contribution in the field of Hindi from the Ministry of Petroleum & Natural Gas (MoP&NG)

5. ‘Honourable Mention for ‘Project Dhanwantari under the category ‘Health, Safe Drinking Water and Sanitation of National CSR Awards 2020 instituted by the Ministry of Corporate Affairs, GoI

6. ‘Innovator of the Year to HP Green R&D Centre team by Federation of Indian Petroleum Industry (FIPI) awards 2022

7. ‘IMC Ramakrishna Bajaj National Quality Milestone Merits Recognition Awards 2022 for categories (i) Safety (ii) Leadership and (iii) Workforce

8. ‘Energy and Resources In-House Legal Team of the Year to HR Legal Cell, ER Department in ALB India Awards 2023 instituted by Thomson & Reuters

9. ‘Swachhta Pakhwada Campaign Award instituted by MoP&NG

10. ‘CII Digital Transformation (DX) Award under the categories:

a. Most Innovative Best Practice in ‘Digitize Maximize: Digital All Along

b. Innovative Best Practice in ‘AI/ML based demand forecasting solutions

11. ‘PSU Awards 2022 in ‘Digital Transformation Category during Dun & Bradstreet PSU and Government Summit 2022

12. ‘Emerging Brand of the Year award to HP HaPpy Shop during the Global Marketing Excellence Award ceremony

13. Best performer Award in the ‘Maharatna category at CPSE Conclave on Public Procurement Policy by MSME, GoI for the categories (a) Highest Procurement in terms of procurement value amongst Maharatna CPSEs from SC-ST MSEs during 2021-22 (b) Highest Procurement in terms of % of total procurement amongst Maharatna CPSEs from SC-ST MSEs during 2021-22 and (c) Highest

Procurement in terms of procurement value amongst Maharatna CPSEs from Women Entrepreneurs during 2021-22

14. ‘Express Logistics and Supply Chain Leadership Awards by M/s B2B Kamikaze in categories (a) Supply Chain Disruptor of the Year & (b) Best Supply Chain Team

15. ‘Apex India Health & Safety Awards 2022 in Petroleum Storage & Transport Sector to 8 locations/ plant/ terminals in Platinum and Gold categories

16. ‘SAKSHAM 2022 Award to Hazarwadi LPG Bottling Plant instituted by Petroleum Conservation Research Association (PCRA)

17. ‘Innovation Award in ‘Technology Innovation of the Year (PSU)- Energy storage to HP Green R&D Centre instituted by Indian Energy Storage Alliance (IESA)

18. ‘ET Brand Equity Shark- Gold Award to HP Gas for marketing campaign during the COVID-19 crisis

19. ‘Golden Peacock Award 2022 in the ‘Innovative Product & Service Award category to HP Gas for HP VITRAN App

20. ‘The Best Brand Award in (i) ‘Best Sustainable Business Practices (ii) ‘Customer Service and Loyalty categories to HP Lubricants at ET Ascent National Awards

21. ‘Leadership Award 2022 in ‘Education adding value to the Local Community (Education, Health, Sports) category for Project Kashmir Super-30 Medical at the 11^th India CSR Awards instituted by India CSR Network

22. ‘9^th CSR India Awards 2022 under the category ‘Welfare of Divyangs instituted by Greentech Foundation

23. ‘Best Performance Award and ‘Long-term Association Award to HP Lubricants by M/s. Bosch India

24. 1^st Runners Up of the ‘CSR & Sustainability Award at the 12^th PSE Excellence Awards & Conclave instituted by the Indian Chamber of Commerce (ICC)

25. ‘FAME National Award 2022 for excellence in Occupational Health & Safety

a. Irumpanam Terminal b. Mangalore Hassan Mysuru Bangalore LPG Pipeline c. Mangalore LPG Import Facility

26. ‘PRSI National Awards 2022 by Public Relations Society of India for (i) CSR communication campaign (ii) Internal Communications Campaign, (iii) Annual Report, (iv) House Journal (English), (v) House Journal (Hindi) and (vi) Sustainability Report

27. ‘Best Aviation Fuel Provider award at 14^th International Conference for Civil Aviation by ASSOCHAM

28. ‘ET Ascent National Awards to HP Lubricants for the following categories (i) Best Sustainable Business Practices, (ii) Customer Service and Loyalty award instituted by ET Ascent

29. ‘Excellence award in the categories (i) Analytics/ Big Data, (ii) Artificial Intelligence and (iii) Data Centre Storage amongst all Central PSUs instituted by Governance Now

30. ‘Company of the Year award in the categories (i) EV Charging Installer- Public and (ii) EV Charging Infrastructure –PPP at EV Charge Leadership Awards, Maharashtra

Q. CAUTIONARY STATEMENT

Matters covered in the Management Discussion and Analysis report describing the Corporations objective, projections, estimates and expectations may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. The actual performance could vary from those projected or implied. Important or unforeseen factors that could make a difference to the Corporations operations include economic conditions, demand/supply and price conditions in the domestic and international market, changes in regulations and other incidental factors.