{"id":8238,"date":"2018-03-23T10:41:46","date_gmt":"2018-03-23T05:11:46","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=8238"},"modified":"2019-10-05T12:04:46","modified_gmt":"2019-10-05T06:34:46","slug":"petrol-pump-license","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/petrol-pump-license\/","title":{"rendered":"Petrol Pump License: The Basic Eligibility Criteria"},"content":{"rendered":"<p class=\"has-drop-cap\">For promoting transparency in awarding a petrol pump license and franchise by Oil Marketing Companies,&nbsp; 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.<\/p>\n\n\n\n<p>In this article, we look into all the criteria for an individual&rsquo;s petrol pump license. We are discussing detailed information about the entire process of opening a new petrol pump with India.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/Petrol-Pump.jpg\" alt=\"Petrol Pump License\" class=\"wp-image-21606\" width=\"359\" height=\"359\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/Petrol-Pump.jpg 626w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/Petrol-Pump-150x150.jpg 150w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/Petrol-Pump-300x300.jpg 300w\" sizes=\"(max-width: 359px) 100vw, 359px\"\/><\/figure><\/div>\n\n\n\n<p>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 <strong>Bharat Petroleum (BPCL)<\/strong><sup><a href=\"https:\/\/www.bharatpetroleum.com\/\">[1]<\/a><\/sup><strong> <\/strong>27,000 petrol pumps belong to Indian Oil (IOCL),&nbsp; 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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What will be the Basic\nEligibility Criteria for Petrol Pump License?<\/h2>\n\n\n\n<p>Following is the eligibility criteria which are\nrequired to be fulfilled for getting the petrol pump license:<\/p>\n\n\n\n<ul><li>The person should be a citizen of India.<\/li><li>The applicant should be a person resident in India, i.e., he should have stayed in India for more than 182 days in a previous financial year.<\/li><li>The age limit for the applicant is 21-58 years.<\/li><li>Applicants from the freedom fighters category are exempted.<\/li><li>Must have an identity proof document. Proof of age of the applicant should be verified by presenting a copy of the 10th Matric Certificate or Secondary School Leaving Certificate or Passport or Birth Certificate or Affidavit for age proof or Identification card issued by the Election Commission. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What are the Basic Educational Requirements?<\/h2>\n\n\n\n<p><strong>All the applicants who are from a rural area and belongs to<\/strong><\/p>\n\n\n\n<ul><li>General\nCategory should be at least 10+2 passed and <\/li><li>The\napplicants who are SC, ST, or OBC should be minimum 10<sup>th<\/sup>&nbsp;passed.<\/li><li>If\nthe applicant resides in the village and belongs to the reserved category then\nhe should be at least 10th pass but if the applicants of the general category must be 12th pass<\/li><\/ul>\n\n\n\n<p><strong>In the case of the opening is for<\/strong><\/p>\n\n\n\n<ul><li>Other\nthan rural area, then the applicant should have a minimum qualification awarded\nby &nbsp;any of the universities incorporated\nunder the Act of the Central or State Legislature in India or any other\neducational institution establishment&nbsp; by\nan Act of Parliament or declared to be deemed as a University of Chartered\nAccountant, Company Secretary or any person having a Diploma in engineering. <\/li><li>In\nurban areas, if someone wants to open a petrol pump in urban areas, then he\/she\nshould be a Graduate.<\/li><\/ul>\n\n\n\n<div class=\"read\"><p><b>Read More:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/startup-india-registration-process-the-complete-guide\/\" target=\"_blank\" rel=\"noopener noreferrer\">Startup India Registration Process &ndash; The Complete Guide<\/a><\/mark>.<\/p><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Investment Requirement<\/h2>\n\n\n\n<p><strong>For opening a petrol pump &ndash;<\/strong><\/p>\n\n\n\n<ul><li>in\na rural area: the minimum investment required is 12 Lakhs and<\/li><li>in\nan urban area: the minimum investment required is &#8377; 25 Lakhs. <\/li><\/ul>\n\n\n\n<p><strong>The investment would be in the following form:<\/strong><\/p>\n\n\n\n<ul><li>Bonds<\/li><li>Shares\nof listed companies in Demat form.<\/li><li><a href=\"https:\/\/enterslice.com\/learning\/procedure-mutual-funds-registration-india\/\" target=\"_blank\" rel=\"noreferrer noopener\">Mutual\nFunds<\/a>.<\/li><li>National\nSaving Certificate.<\/li><li>Funds\nin saving the account, deposits with Bank\/Registered<\/li><\/ul>\n\n\n\n<p>Please note that only\n60% of the value of Mutual Funds, and shares will be considered for eligibility\ncriteria. The&nbsp;Chartered Accountant should provide a\nvaluation certificate for the assets.<\/p>\n\n\n\n<p><strong>The investment should not be in the following form:<\/strong><\/p>\n\n\n\n<ul><li>cash,\n<\/li><li>Jewelry,\netc. &nbsp;<\/li><li>Any\nother items\/articles for which ownership cannot be established.<\/li><li>Balance\nin a current account<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Land Requirement<\/h2>\n\n\n\n<p>The\nland is a basic requirement for the selecting of petrol pump dealers. The basic\nrequirements are as follows:<\/p>\n\n\n\n<ul><li>Land should be on National Highway<\/li><li>Applicants shall have a suitable piece of land by way of ownership \/ long term leasing in the advertised location\/area.<\/li><li>Applicants shall apply a firm Offer for a suitable piece of Land for purchasing or undertaking a long term lease.<\/li><\/ul>\n\n\n\n<p>Oil marketing companies scrutinize\nthe location before allocating the petrol pumps. Companies analyze whether the\nlocation would be helpful in generating sales. Sometimes, these oil marketing companies open tender for particular\nlocations where the petrol pump is to be opened.<\/p>\n\n\n\n<p>Based\non the classifications given above, different types of documents are required\nto submit by the applicant to prove the intent to purchase or ownership of the\nLand. The advertisement should contain all the basic requirements in the Land,\nlike area, etc. If the applicant gets selected for the dealership, he\/she is\nrequired to develop the offered Land, like Mannering up to the road level by\ncutting\/filling, with good earth, layer-wise compacted as per standard\nengineering practices. The applicant is required to provide a retaining wall\nand compound wall of a minimum height of 1.5 meters, designed as per site\nconditions.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/Petrol-Pump-License.jpg\" alt=\"Petrol Pump License\" class=\"wp-image-21607\" width=\"455\" height=\"383\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/Petrol-Pump-License.jpg 626w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/07\/Petrol-Pump-License-300x253.jpg 300w\" sizes=\"(max-width: 455px) 100vw, 455px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Fees for Petrol Pump License<\/h2>\n\n\n\n<ul><li>The application fee is <\/li><li>Rs.100\/- for rural retail and<\/li><li>Rs.1000\/- for regular retail outlets.<\/li><li>The applicants who belong to Scheduled Caste and Tribes can get a 50% concession on the application fee.<\/li><li>The applicant is required to pay the application fees through the demand draft. The application fee is non-refundable, and the applicant can apply for just one location.<\/li><li>If the dealer owns the Land, then the applicants are required to pay a fee Rs.15 lakhs which is non-refundable in nature.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How to apply for Petrol Pump Dealership? <\/h2>\n\n\n\n<ol><li>After the applicant see the advertisement given in the newspaper\nor website of <\/li><li>the oil companies,<\/li><li>Interested candidates apply online\nfor a license to open a petrol pump in the desired state\/city\/region.<\/li><li>After receiving a number of\napplications, the oil company announces the name of the winner by means of a lottery system. Whosever&rsquo;s name comes out in\nthe lottery; they are required to submit all the documents required.<\/li><\/ol>\n\n\n\n<p><strong>Note:<\/strong>&nbsp;After getting the license for Petrol Pump, the applicant is required to register for paying <a href=\"https:\/\/enterslice.com\/gst-registration\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Goods and Service Tax (GST) (opens in a new tab)\">Goods and Service Tax (GST)<\/a> and is also required to open a Current Account in the name of a petrol pump.<\/p>\n\n\n\n<div class=\"read\"><p><b>Recommended Article:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/income-tax-laws-for-startups\/\" target=\"_blank\" rel=\"noopener noreferrer\">What are the Income Tax Laws for Startups in India<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>For promoting transparency in awarding a petrol pump license and franchise by Oil Marketing Companies,&nbsp; 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 [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":8240,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[1774],"acf":{"service_id":"220"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Petrol Pump License: The Basic Eligibility Criteria | Enterslice<\/title>\n<meta name=\"description\" content=\"Petrol Pump License in India - For starting a regular petrol pump minimum investment should be \u20b9 25 Lakhs in the form of Mutual Funds etc.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/petrol-pump-license\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Petrol Pump License: The Basic Eligibility Criteria | Enterslice\" \/>\n<meta property=\"og:description\" content=\"Petrol Pump License in India - For starting a regular petrol pump minimum investment should be \u20b9 25 Lakhs in the form of Mutual Funds etc.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/petrol-pump-license\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2018-03-23T05:11:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-10-05T06:34:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/03\/Petrol-Pump-License.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"881\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":893,"readingTime":4,"nextPost":{"id":8242,"slug":"cheque-bounce-notice-format"},"prevPost":{"id":8201,"slug":"detergent-powder-manufacturing"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/03\/Petrol-Pump-License.jpeg","postTerms":"Startup","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/8238"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=8238"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/8238\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/8240"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=8238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=8238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=8238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}