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For promoting transparency in awarding a petrol pump license and franchise by Oil Marketing Companies, the Government has formed a new dealer selection process. Under this process, the application is first checked as per the criteria established by the law. After all the eligibility criteria are met, the applicant go-ahead to the next round where the process of bidding takes place.
In this article, we look into all the criteria for an individual’s petrol pump license. We are discussing detailed information about the entire process of opening a new petrol pump with India.
Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited, and Indian Oil Corporation Limited, etc. allocates petrol pumps to all dealers who have a valid license across India and delegate them to sell their petroleum products. They are the main diesel and petrol selling companies in India. India has 63,674 petrol pumps currently, most of them are under the public sector. Around 14,600 belongs to Bharat Petroleum (BPCL) 27,000 petrol pumps belong to Indian Oil (IOCL), and 15,300 belongs to Hindustan Petroleum (HPCL). The Government has public sector oil companies that have planned to allot about 65,000 petrol pumps in the public sector oil in India.
Table of Contents
Following is the eligibility criteria which are
required to be fulfilled for getting the petrol pump license:
All the applicants who are from a rural area and belongs to
In the case of the opening is for
Read More: Startup India Registration Process – The Complete Guide.
For opening a petrol pump –
The investment would be in the following form:
Please note that only
60% of the value of Mutual Funds, and shares will be considered for eligibility
criteria. The Chartered Accountant should provide a
valuation certificate for the assets.
The investment should not be in the following form:
land is a basic requirement for the selecting of petrol pump dealers. The basic
requirements are as follows:
Oil marketing companies scrutinize
the location before allocating the petrol pumps. Companies analyze whether the
location would be helpful in generating sales. Sometimes, these oil marketing companies open tender for particular
locations where the petrol pump is to be opened.
on the classifications given above, different types of documents are required
to submit by the applicant to prove the intent to purchase or ownership of the
Land. The advertisement should contain all the basic requirements in the Land,
like area, etc. If the applicant gets selected for the dealership, he/she is
required to develop the offered Land, like Mannering up to the road level by
cutting/filling, with good earth, layer-wise compacted as per standard
engineering practices. The applicant is required to provide a retaining wall
and compound wall of a minimum height of 1.5 meters, designed as per site
The above are some of the major criteria for providing a petrol pump license. Applicants after satisfying these criteria will be allowed to progress to the next stage, wherein the final decision is made based on a draw or lots or a bidding process.
Note: After getting the license for Petrol Pump, the applicant is required to register for paying Goods and Service Tax (GST) and is also required to open a Current Account in the name of a petrol pump.
Recommended Article: What are the Income Tax Laws for Startups in India.
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