Business Opportunity: PSUs Call For Petrol Pump Dealership Bids

Oil Marketing Public Sector Units- Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL), have together invited bids for 55,649 petrol/diesel retail outlets across the country. It is the first time in four years that the government has permitted the state-owned oil marketers for an expansion and at a scale that would double their fuel stations.

"For a fast-growing economy like ours, energy needs are growing manifold. PSU Oil Marketing Companies (OMCs - BPCL, HPCL & IOCL) are undertaking Retail Outlet (Petrol Pump) network expansion in tandem with the growth in demand of Petrol and Diesel," the companies said in a joint statement.

At present these PSUs collectively own 55,649 petrol refueling stations, of which, Indian Oil owns 26,982, Bharat Petroleum owns 15,802 and Hindustan Petroleum has 12,865 outlets. This expansion is expected to generate employment for 5.5 lakh in the next five years.

How to apply for the petrol pump dealership?

The PSUs have issued advertisements calling bids. In order to expand the outlet network to rural and remote areas, and emerging areas like highways, industrial hubs and agricultural areas, around 60 percent of the outlets will be run on the dealer-owned-dealer-operated model. Earlier, the PSUs mainly owned most of the outlets with the dealer entitled to only operation rights.

Things to know:

• One can apply for the dealership online here.
• For the dealer-owned-dealer-operated model computerized draw of application will be done by an independent agency to ensure transparency.
• The company-owned-dealer-operated outlet rights will be given through a bidding process.
• Locations 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 in the link above.
• The locations are classified as Regular Retail Outlets (highways, urban and semi-urban areas within municipal limits) and Rural Retail Outlets (rural areas outside municipal limits).
• There are reservations for defense personnel, government employees, outstanding sports persons, physically handicapped, SC/ST, OBC and freedom fighters in some states.
• The applicant has to be an Indian citizen and resident between 21 to 60 years of age.
• Entities can also apply for a dealership.
• Suitability of the land is a requirement. The applicant need not own the land.
• 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. This fee can be paid online.
• There is also an additional non-refundable fixed fee/bidding amount applicable based on the type of dealership and area and will range between Rs 5 lakh to Rs 30 lakh.
• The offer closes on 24 December.
• You can read the complete specifications of land requirement and other details here.