PSU Petrol pump dealership – What is the eligibility and how to apply?

PSU Petrol pump dealership – What is the eligibility and how to applyPSU Petrol pump dealership – What is the eligibility and how to apply?

IOC, BPCL and HPCL have jointly invited bids for opening over 55,000 petrol and diesel outlets in India. After a long time, Govt of India has given permission for these state owned oil marketers to go for such huge expansion. Since this is massive expansion, many individuals / unemployed would benefit from this.  What are the features of Petrol Pump Dealership being offered now? What is the eligibility criterion for individuals /proprietorship / partnership? How to apply for a PSU Petrol pump dealership? When your petrol pump dealership application would get rejected? This post is based on request by on Suggest a topic.

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Introduction to PSU Petrol pump dealership

Keeping in mind the escalating need for energy resources in our country, the Public Sector Units of oil marketing – Indian Oil Company (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) have jointly invited bids for opening 55,649 petrol and diesel outlets in India. The 60% of the outlets will be run on the dealer-owned-dealer-operated model. Previously, these PSUs mainly owned the outlets with the dealer entitled to only operational rights. 

Features of Petrol pump dealership

The following are the features of the petrol pump dealership:

1) For the dealer-owned-dealer-operated model, computerized draw of the application will be done by an independent agency in order to ensure transparency.

2) The company-owned-dealer operated outlet rights will be given through a bidding process.

3) Two categories of location have been set for the purpose- regular retail outlets which include highways, urban and semi-urban areas within municipal limits and rural retail outlets which are outside the municipal limits. 

4) The location of the retail outlets will be identified by the company and you will be able to bid for the location as mentioned in the notifications.

5) There is an additional non-refundable bidding amount ranging between Rs. 5 lakh to Rs. 30 lakhs which is applicable based on the type of dealership and area.

6) There are reservations for SC/ST/OBC, government employees, defense personnel, freedom fighters, outstanding sports person, and physically challenged people in some states.

7) The application fee for the non-reserved category is Rs. 8,000 for a rural outlet and Rs. 10,000 for a regular retail outlet. This amount is non-refundable and can be paid online.  

8) The offer began on 24 November, 2018 and closes on 24 December, 2018.

9) There are certain land criteria to be met by the applicant.

What is the eligibility criterion for individuals /proprietorship / partnership?

For individuals: The applicant has to be a resident and citizen of India between the ages of 21 to 60 years. The minimum educational qualification of the applicant is 10th passed from any school or Board.

For sole proprietorship: In case of individual applicants, applying as a sole proprietor, his/her spouse will be made a partner of 50% share unless the spouse is already employed or he/she does not wish to become a partner.

For partnership:  In case of partnership, each partner should meet the criteria mentioned in the individual category. However, the land owned by the partners will be treated as owned by the proposed firm as a whole. 

What is the eligibility criterion for Non-Individuals?

Non-individual applicants mean Government bodies or agencies, co-operative societies, companies or charitable trusts. The following is the eligibility criteria-

The applicant has to be registered in India.

The date of registration has to be at least 3 years prior to the date of application. 

Registered Societies or Companies should have made a net profit for previous 3 consecutive financial years. 

How to apply for a PSU Petrol pump dealership?

The dealership for petrol pumps can be applied online by going to this link

Who would maintain the Retail outlet of petrol pump?

The person selected for the dealership shall be paying attention on the day-to-day working of the dealership. He/she is not allowed to take up any other employment. If the selected person is already employed, he/she has to quit his employment.   

A non-individual applicant selected for the dealership will have to mange day-to-day working affairs of the dealership under the supervision of their own employees. 

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What are basic facilities required for Operations of Retail Outlet dealership?

There are few facilities that have been mentioned by the oil company to be provided at the retail outlet by the dealer-

1) Developed land with boundary or compound wall as per corporation specification

2) Tanks, dispensing units, signage, automation etc

3) Sales office, store room, toilet, electrical room, water connection, etc

4) Generator or invertor

5) Compressor with electronic gauge for air filling

6) Driveway

7) Canopy as per specifications

8) Clean drinking water, neat toilets, telephone for customer convenience

9) There are certain site specific additional facilities required like staff cum change room, rest room etc.

10) Dealer will provide fire fighting and safety equipments at retail outlet as per statutory requirements and maintain them in good condition at his own cost. Trained staff should be available for handling and operating the same.

Who need to take statutory approvals for petrol pump dealership?

The selected dealer will take all the statutory approvals and licenses required for the operation of dealership.

What is the license fee payable under petrol pump dealership?

The license fee would be payable on per KL basis by the dealer as applicable from time to time.

In case of corporation owned “A”/ “CC” site-

Petrol- Rs. 472.77/Kl

Diesel- Rs. 393.97/Kl

In case of dealer owned “B”/ “DC” site-

Petrol- Rs. 233.45/Kl

Diesel- Rs. 194.54/Kl

When your petrol pump dealership application would get rejected?

While fulfilling the above criteria, if the applicant does not satisfy any of the following requirements, he/she will be considered as ineligible for applying for the dealership-

1) The applicant or any of his “family unit” should not hold any dealer ship of same oil company.

2) He/she should not have been convicted for any criminal offence involving moral turpitude or economic offence.

3) He/she should not have been a signatory to a dealership terminated on account of malpractices.

4) He/ she should not be mentally unsound or totally paralyzed.

5) In case of partnership, the conditions spelt above would be applicable to all the partners individually.

How is the selection done?

Depending upon the type of site of retail outlet, selection will be made through draw of lots or bidding process. This will be indicated against each location in the advertisement. Advertisements will be released in newspapers intimating the selection of RO dealership. All the details regarding name of RO location, district, state, category will be hosted in website

Brochure for selection of retail outlet dealership can be downloaded from the website. The advertisement will mention the last date by which the application is to be submitted. If he/she fails to submit his/her on-line application on the due date due to any technical reasons, the company shall not be responsible whatsoever.

Once the application is submitted, the status will be communicated through SMS/e-mail or mobile number provided in the form.

The applicant would be intimated if his/her application gets selected. The applicant has to submit required documents and 10% remittance of the security deposit within 10 days of intimation.

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How to maximize chances in getting petrol pump dealership?

To maximize their chances of getting the petrol pump dealership:

The applicant should carefully go through the brochure and read all the terms and conditions before submitting their application.

Documents and affidavits should be submitted in line with the category of the location and as advised by the oil company.

All the affidavits should be submitted in original and should be of a date after the date of advertisement.

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PSU Petrol pump dealership – What is the eligibility and how to apply

Suresh KP



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