Introduction
A new dealer selection method has been developed to expand openness to issue the License of petrol pumps by Oil Marketing Companies. Under the new procedure, the candidate is, to begin with, assessed against pre-established qualifying requirements. All applicants who meet the eligibility criteria advance to the following phase, in which lots are drawn is utilized to choose the dealer. Now, eligibility requirements play an important role in the selection of a gasoline pump dealer or petrol pump dealer.
Eligibility requirements to obtain a Petrol Pump License
Some eligibility conditions must be met to get a gasoline pump license which are given following:
The applicant must be a citizen of India.
The applicant must be a resident of India or in the previous financial year, he must have spent more than 182 days in India.
The age of the applicant must be between the ages of 21 to 58.
A document proving your identification is needed.
The age of the applicant should be verified by presenting a copy of his or her matriculation Certificate (10th), Secondary School-Leaving Certificate, Passport, Birth Certificate, etc.
How to apply for Petrol Pump License?
In general, Oil Marketing Companies give an advertisement in the newspaper or on their official portal to set up petrol pumps at different locations across the country. Many oil firms like Essar Group, IOC, Hindustan Petroleum, etc. have an application form on their official portal for the Franchisee of Retail Outlet. If the Oil Marketing Company received a lot of applications then a lottery system is initiated to select the applicant. The selected applicant should submit the necessary and required documents to the oil company in a specific time period that is given by the Company. After receiving the license, the applicant will have to get the GSTIN number for paying the GST and open a new account on behalf of his petrol pump.
An applicant can apply online and the procedure for getting the petrol pump license is given below:
Visit the site of www.petrolpumpdealerchayan.in.
Press Register Now which is given on the home page.
Fill out the form and create an account for further processing.
Login with your Id and Password and then click on Available Advertisement which is located on the dashboard.
Now select the name of your preferred company and your resident state.
After that, you will see the place in which the company wants to open the petrol pump in your selected state.
Choose your nearby area then click on Apply Now
Now fill out the form within the given time limit which is 40 minutes.
Select Individual or Partnership from the drop-down box and pay the fee of Rupees Ten Thousand.
Now fill in your personal and necessary information, upload your photo and signature then click on Submit button.
Now you will pay the fee to complete the process.
Investment required to obtain a Petrol Pump License
In case to start a regular Petrol Pump, the applicant must show the capability to invest a minimum of Rs.25Lakhs and in the case of rural petrol pumps then the applicant must show the capability to invest a minimum of Rs. 12Lakh. The investment fund can be in the following forms:
Funds in savings accounts, deposits with Bank or Registered Companies
National Savings Certificates
Bonds
Shares of listed Companies in Demat Form
Mutual Funds
It noted that cash, jewelry, and other items for which ownership cannot be verified will not be considered. Also, the current account balance will not be considered. Only 60% value of the shares, mutual funds, and bonds will be considered. Get the valuation certificate for the assets from a CA.
Land required for a petrol station
The land is a major criterion for getting the petrol pump license. The applicants are first classified into two groups as follows:
The land should be on National Highway Applicants have enough land in the advertised location or area either by way of ownership or long-term lease. Applicants have Firm Offers for land for purchase or long-term lease.
Based on the above classification, different types of documents must be submitted by the applicant for proving the ownership of the Land or intent to purchase. The area of the land must be as per the requirement which is mentioned in the advertisement. If the applicant is selected for a petrol pump dealership, he or she has to make available the offered land in a developed manner up to the road level by cutting or filling, with good earth, layer-wise compacted according to the engineering practices. The selected applicant needs to give a retaining wall and compound wall of a minimum height of 1.5 meters, designed according to the site conditions.
Permissions and Certificates needed for starting a Petrol Pump Business
In order to open a petrol pump, an applicant must receive specialized certificates and authorization to run his or her business smoothly. Some examples are given below:
No Objection Certificate from the Licensing Authority
Permission from the MCA
Fire Safety Office Certification and No Objection Certificate from connected authorities
Conclusion
It concluded that Oil Marketing Companies give an advertisement in the newspaper or on their official portal to set up petrol pumps at different locations across the country. Many oil firms like Essar Group, IOC, Hindustan Petroleum, etc. have an application form on their official portal for the Franchisee of Retail Outlet. If the Oil Marketing Company received a lot of applications then a lottery system is initiated to select the applicant. The selected applicant should submit the necessary and required documents to the oil company in a specific time period that is given by the Company.
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