Petrol pump dealership in India is a very popular business. The automobile sector has been growing very fast in the last few years, and the road network is also expanding with significant quality improvement. As a result of these two factors, petrol consumption (diesel consumption too) is increasing in India, indicating the need for more retail outlets. But, how can you get into this prized business option?
Opening a Petrol Pump in India
Entering the retail business of petroleum products is different from most businesses. First, you have to wait for the opportunity, even if you have all the resources (capital, land and support). Then, when the oil marketing companies (OMCs) decide to open the pump at your preferred location/s, that is when your endeavor begins.
To keep the selection process transparent, OMCs have designed a standard eligibility-based online strategy. In this structured process, only those applicants qualify for the next round who meet the eligibility criteria of the first stage.
Apart from the various sub-categories, petrol retail shops are of two types:
Dealer-owned, dealer-operated
With its various clauses, sub-clauses and conditions on eligibility, reservation, land ownership and others, it is essential to study the application procedure carefully before deciding to apply. As a first step of preparation, you can consult a website specifically designed for petrol pump dealership applications.
The actual process of your application begins once the advertisement inviting applications for petrol pump dealerships is released.
In this article, we will take a brief look at some of the main features of the application process. For a detailed understanding, it is best to study the application brochure of the OMCs.
1. Location of the outlet
The location of the petrol pump outlet is an important parameter and is decided by the respective OMC. Generally, outlets are of two types:
Regular retail shops located within the municipal limits of urban or semi-urban areas and on national or state highways
Rural shops located outside the municipal limits of a city and in rural areas, but not on a highway
Land is an important parameter for the proposed outlet. Applicants are classified into three groups according to the land ownership status:
Applicant having the requisite piece of land in the advertised area as ownership or long term lease for a minimum period of 19 years 11 months (or as specified in the advertisement).
Applicants having a concrete offer for purchase of land or long term lease (19 years 11 months)
Applicants who have not been offered land
The size of the land is area or outlet-specific and will be indicated in the petrol pump dealership advertisement.
2. Eligibility Requirements
Citizenship: For Indian citizens only
Residential Status: Resident of India as defined under the Income Tax Act, minimum 182 days stay in India in the previous financial year of application
Age: Applicant must be above 21 years and below 55 years of age except reserved category freedom fighters.
Documents accepted in support of age are Standard X-level Board Certificate, Passport, Affidavit for Age, or Voter ID Card.
3. Educational Qualification
For Rural Outlets: 10th class passed
For Regular (Urban) Outlets: Graduation/Professional qualification for General Category; 12th class passed for others
4. Reservation
These are the percentage of reservation for various categories for allotment of Regular/Rural Petrol Pump Dealership in all states except Arunachal Pradesh, Meghalaya, Nagaland and Mizoram.
5. Facilities required at Petrol Pump Dealership Outlet
Developed land with boundary wall as per OMC design and specification, with driveway and canopy
Storage tanks, dispensing units, signage
Yard lighting, electrical room, water connection, toilets, office room, store room, compressor with electronic gauge for air filling
Fire & Safety Equipment
Necessary equipment to be installed at Petrol Pump outlet as per statutory requirements
Trained staff to be available for 24x7 operation
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