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How to apply for petrol pump dealership?

By The Assam Tribune
How to apply for petrol pump dealership?

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Guwahati, Feb 25: Owning a petrol pump is undoubtedly one of the most lucrative businesses in India and abroad. However, a lot of people are unaware of the procedures involved in applying for a petrol pump dealership in the State.

To name a few, some of the major concerns such as expenses to operate a fuel station, the license approval process, land specifications, etc. are the basic know-how before investing in a petrol pump.

Some of the public and private sector Oil Marketing Companies (OMCs) from where petrol pumps' license and the franchise can be obtained are- Bharat Petroleum Corp. Ltd. (BPCL), Indian Oil Corp. (IOC), Hindustan Petroleum Corp. Ltd. (HPCL), Reliance Petroleum Ltd., Essar Oil Ltd., Indraprastha Gas Ltd. (IGL), Oil and Natural Gas Corp. Ltd. (ONGC) and many more.

Here we have mentioned the complete procedure of how one can apply for a dealership in India. The procedure involves two main steps. The first step includes clearing the eligibility criteria to apply for the dealership. The second step is based on the approval of the first step, candidates who fulfill the previous criteria will be assigned for the next round, in which a lot is drawn or the dealer is selected through an auction process.

The website where one can apply for the dealership is:

Eligibility Criteria:

• Applicants must be Indian citizens with valid identity cards.

• If the applicant is an NRI or Non-resident Indian, then he/she has to live in India for at least 180 days before applying for a petrol pump.

• Age should not be less than 21 years and not more than 60 years except for Freedom Fighter under CC2 category.

• In terms of educational qualification, an applicant has to be 10th pass while for the general category he/she must be 12th pass. In the case of urban areas, the qualification of the applicant should be graduate. However, the education qualification does not apply for C1 and C 2 categories.

After the above-mentioned qualifications, the second set of eligibility comes under which the following steps have to be met:

Fund Requirement:

• A good investment capacity is required to start with a petrol pump. The charges may not be similar throughout the country.

• Applicants have to invest around a minimum of Rs. 15 – Rs. 20 lakh. Whereas, for opening petrol pump in urban areas the investment amount can go up to Rs. 30 – Rs. 35 (if the land is self-owned).

• As per regulations besides cash and jewelry, the appropriate fund or deposit may be accepted in the form of bank deposits, bonds, mutual funds, fixed deposits, national savings certificate, share of listed companies in demat account.

Land Requirement:

Usually, petrol companies specify the type of land required to run a petrol pump. The applicant must, therefore, consider the specifications before proceeding with an application.

• Applicant must have land under his/her own name or areas where land can be taken on lease for a longer tenure. Legal documentation of the land is necessary for the verification process.

• The area of land required should be at least between 800 sq meters to 2000 sq meters depending on the location.

• Land chosen should be developed and levelled and easily accessible from the road.

• For a rural retail outlet, the land must be in rural areas but not on the national highways or state highways, whereas to set up an oil pump in a regular area the land must be on national highways, state highways, urban and semi-urban areas.

Application for License:

To obtain the license for opening a petrol pump, interested candidates have to look out for advertisements in the newspaper or online where the OMCs publish their plans of setting up numbers of petrol pumps in various cities and locations of the country.

Applicants can apply online by visiting the OMC's official website for opening a dealership in their desired location or area or can write in at the mentioned address published in the advertisement.

However, if there are lots of applicants applying for the same area or location then OMCs announces the name of winners via a lottery system or bidding process.

Applicants have to buy a form for Rs 100 for rural areas and Rs 1000 for urban areas and have to fill in all the details. Applicants from the SC / ST category can get a 50% concession on the application fee.

Once the license is obtained, the applicant will need to get a GSTIN number to pay GST and open a current account with the name of his petrol pump.

How to apply:

The basic steps the applicant has to follow to apply for a petrol pump are a s follows:

Step 1: Visit the official portal of Petrol Pump Dealer Chayan:

Step 2: Click on the "Register Now" option and fill in a form to create an account.

Step 3: Log in and click on "Available Advertisement" on the dashboard.

Step 4: Select your desired company's name and local state and click on "Apply Now".

Step 5: Provide all required details, upload a photo and signature, and click on "Submit".

Step 6: Make online payment.

For more details check out the User manual for the applicants:

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