For the longest time, I was under the impression that starting a Petroleum Retail Outlet (or petrol pump in laymen term) was either too costly or too held down by bureaucracy. There was an air of uncertainty about the processes involved and documentation was vague. A bit of this is true even today but digitization has brought lot of positive changes.
As was seen in the 2023 OMC (IOCL, BPCL and HPCL) advertisement via Petrol Pump Dealer Chayan platform, as well as MRPL’s 2023 Advertisement via MDSP platform, the entire Petroleum retail outlet application process has now been made online. Step-by-step processes for application as well as brochures, appendices and lease formats are available on these platforms. All that the applicants need to do is read these documents carefully, select the required location, fill in the KYC details and upload the required land documents, and viola, you are all set!
Important note: Always remember to check the filled details twice or even thrice. Some details such as adding incorrect survey numbers in the application form are liable to get your application rejected as it comes under non-rectifiable deficiency.
Applying For Retail Outlet (Petrol Pumb)
The first step of any retail outlet process is to get your land or plot included in the advertisement. The retail outlet advertising of all OMCs are usually expansive and includes all major feasible locations within the district or region as recommended by Sales Officer or Officers assigned to do feasibility. However, OMC guidelines mandate that the stretch be given between two major and distinct landmarks. So, while putting a new location, your plot may not be included within the stretch even though the locality or area was advertised. It is thus important to be in communication with the OMC Sales officer before the advertisement so that a feasibility study may be conducted for your plot and included in future advertisements.
Note: Different OMCs might have different policies on how far away they can set up ROs from their own as well as other OMC retail outlets, and this may also be enquired with the Sale Officer.
Call for Advertisement is usually done through all major regional language newspapers and one or two English Papers. The Advertisement will also be available on social media and websites. Prior to applying, it is important to read the advertisement thoroughly. This includes checking if your plot is within stretch, dimensions required, investment and rent applicable. Also keep a copy of all KYC and land documents with you on your PC or laptop. You will get two to three months to apply for the RO Advertisement.
See More: MRPL’s 2023 Advertisement
Once you apply for any location and the date for applications closes, you will be grouped into Group 1, Group 2 or Group 3 as per the land ownership category selected by you. After this, based on the number of applicants, you will either get automatically selected or will be required to wait for Draw-of-Lots (DOL) or Bidding.
Once selected and necessary Initial Security Deposit is paid, the OMC will start Pre-LOI processes. This include verifications by Applicant Scrutiny Committee (ASC), Land Evaluation Committee (LEC) and Field Verification Committee (FVC). Once the applicant passes all these verifications, he will be eligible for Letter of Intent (LOI).
After receiving the LOI, the OMC will issue the DC-NOC Drawing and DC-NOC Application letter for No-Objection Certificate for setting up Petroleum Retail Outlet by the District Collectorate. Additionally, Non-Residential Zone certificate and key plan from Panchayath Secretary, Prior approval from Petroleum and Explosives Safety Organization (usually before DC NOC) as well as NOC from Town Planning department (Usually after DC NOC) are taken.
NOC, Construction and Commissioning
After the receipt of necessary NOCs, the construction of Petroleum Retail Outlet can start. As per LOI terms, the land should have been made fit for construction by this time- including land levelling and compound wall construction (under the scope of applicant). Construction starts with the arrival of fuel tanks at the plot.
In DODO/DC sites, the tanks, pipeline and RVI are usually under the scope of the company and sale building, paving and canopy are under the scope of dealer. For CODO/CC, majority of the above scope comes under the OMC itself.
Once the construction is in penultimate stages, the RO is energized with necessary fuel. Final permits are taken from town planning, PESO and other departments. Electricity and water connections are also taken if not already done. The construction work is then completed, and the RO becomes ready for inauguration.
Starting Sales
Don’t make the mistake of thinking that your RO is completed, just because the construction is complete. A petroleum retail outlet is a long-term investment that requires strong commitment, hard work, safety and trust. The applicant (now dealer) must work to provide good service in their outlet and always maintain cordial relations with customers. All safety standards must be met to the absolute.
There are enough choices today and even a slight mishap from your RO may result in permanent losses.
Read more: About MRPL HiQ and CPCL – New Petroleum Retail Outlets
(Information provided through personal understanding of the subject matter. Always clarify with respective Sales Officers of OMCs or go through the brochures and terms and conditions carefully before applying)