Lok Sabha Question No. 2851 (UNSTARRED), answered on 2017-03-20
Subject: Criteria/Reservation Policy for RO/Gas Agencies/CNG Pumps
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAJESHBHAI NARANBHAI CHUDASAMA

## LOK SABHA UNSTARRED QUESTION NO. 2851 TO BE ANSWERED ON 20 th  MARCH 2017 CRITERIA/RESERVATION POLICY FOR RO/GAS AGENCIES/CNG PUMPS

2851. SHRI RAJESHBHAI CHUDASAMA:

## पेट्रोलियम एवं प्राक ृ लिक गैस मंत्री

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state :

- (a)  the  norms/criteria  laid  down  by  the  Government  for  allotment  of  LPG  agencies,  petrol pumps and CNG pumps in the country;
- (b) whether any kind of reservation/ quota for the persons belonging to Scheduled Castes (SCs)/Scheduled Tribes (STs)/Other Backward Classes/Ex-servicemen/ Defence Personnel has been prescribed in allotment of petrol pumps/ gas agencies/CNG pumps and if so, the details thereof;
- (c) whether there are some restrictions for oil companies to increase LPG agencies/ petrol pumps; and
- (d)  if  so,  the  details  thereof  along  with  the  steps  taken  to  increase  the  number  of  petrol pumps and LPG agencies in the country, State/UT/Oil Marketing Companies-wise?

## ANSWER

पेट्रोलियम एवं प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) ( श्री धमेन्द्र प्रधान )

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) & (b)

## With regard to LPG

The main norms/criteria laid down in the revised guidelines, namely, Unified Guidelines for Selection of LPG Distributorships 2016,  are as under :-

- i. Applicant shall be an Indian citizen and be a resident of India.
- ii. Should  have  passed  minimum  Xth  standard  examination  or  equivalent  from  a recognised  Board.  The  criterion  of  educational  qualification  is  not  applicable  for applicant belonging to Freedom Fighter (FF) category.
- iii. Applicant shall be of 21 years and not more than 60 years in age as on the date of advertisement.
- iv. There is no age restriction for  applicants  applying for  locations  reserved  under  FF category.
- v. Shall not be a family member of employee of OMC as on date of application.
- vi. Shall fulfil Multiple Dealership/Distributorship norms.
- vii. Shall  not  be  a  signatory  to  distributorship/dealerships  agreement,  terminated  on account of proven cases of malpractices/adulteration.
- viii. Shall Own a plot of land of minimum dimensions for construction of LPG godown or Own a ready LPG cylinder  storage  godown  as  on  the  last  date  for  submission  of application.

Reservation in allotment of LPG distributorship is at Annexure-I .

The detailed guidelines namely 'Unified Guidelines for Selection of LPG Distributorships' is available on the website http://www.petroleum.nic.in

## With regard to Retail Outlet

The main features of norms and criteria prescribed for allotment of Petrol Pumps operated by Public Sector Oil Marketing Companies (OMCs) in the country are given in AnnexureII .  The  detailed  guidelines  in  this  regard  are  available  on  the  respective  websites  of  the OMCs.

## With regard to CNG Pumps

Compressed  Natural  Gas  (CNG)  is  marketed  by  City  Gas  Distribution  (CGD)  companies either through existing retail outlets offered by Oil Marketing Companies (OMCs) or through standalone CNG stations. Based on Expression of Interest (EOI) received and the potential of  Geographical  Area  (GA)  identified  by  Petroleum  and  Natural  Gas  Regulatory  Board (PNGRB), PNGRB invites bids,  evaluates  them  and  awards  authorization  to  an  entity  for laying, building and operating of CGD network in such GA. As and when such CGD entity approaches OMCs for setting up of CNG facilities, Retail Outlets (ROs) of OMCs are offered considering the availability of sufficient space at the outlet as per norms of Petroleum and Explosives Safety Organisation (PESO) and potential CNG demand in the area.  Standalone CNG stations are set up only by City Gas Distribution (CGD) companies who have their own selection guidelines for setting up CNG stations.

(c) & (d) There is no restriction for Oil Companies to increase LPG agencies/Retail Outlets

Setting of LPG distributorships/Retail Outlets is a continuous process and locations are  identified  based  on  feasibility  study  of  sale  potential  that  makes  them  economically viable.

OMCs have advertised for  1531  locations  in  the  States  of  Uttar  Pradesh,  Odisha, Uttarakhand  and  Punjab.  56  new  distributorships  under  Durgam  Kshetriya  Vitrak  (DKV) category  have  been  sanctioned  to  Chhattisgarh  and  Andhra  Pradesh  Government  on nomination basis.  As on 14.03.2017, 1142 Letter of Intent (LOI) has been given to selected applicants  and  741  new  distributorships  have  been  commissioned  in  the  current  financial year

Annexure referred to in reply to part (a) & (b) of LOK Sabha Unstarred Question No. 2851  by  Shri  Rajeshbhai  Chudasama  regarding  'Criteria/Reservation  Policy  for RO/Gas Agencies/CNG Pumps '

## RESERVATION

The  percentage  reservation  for  various  categories  in  all  the  States  except  Arunachal Pradesh, Meghalaya, Nagaland and Mizoram are as under: -

| A   | Open Category (O)                          | 50.5%   |
|-----|--------------------------------------------|---------|
| B   | Schedule Castes / Scheduled Tribes (SC/ST) | 22.5%   |
| C   | Other Backward Classes (OBC)               | 27.0%   |

In each of the above categories, there will be sub-categories as under:-

|                                                      | Reservation Categories (in %)   | Reservation Categories (in %)   | Reservation Categories (in %)   | Reservation Categories (in %)   |
|------------------------------------------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|
| Sub-Category                                         | SC/ST                           | OBC                             | Open                            | Total                           |
| Government Personnel category (GP)                   | 2                               | 2                               | 4                               | 8                               |
| Divyang/ Physically Handicapped Personnel (PH)       | 1                               | 1                               | 1                               | 3                               |
| Combined Category (CC)                               | 0                               | 0                               | 1                               | 1                               |
| Women                                                | 7                               | 9                               | 17                              | 33                              |
| Unreserved - Any person from the respective category | 12.5                            | 15                              | 27.5                            | 55                              |
| Total                                                | 22.5                            | 27                              | 50.5                            | 100                             |

The  reservation  under  respective  categories  will  be  SC/ST  (GP)-2%,  SC/ST  (PH)-1%, SC/ST  (W)-7%,  SC/ST-12.5%,  OBC  (GP)-2%,  OBC  (PH)-1%,  OBC  (W)-9%,  OBC-15%, Open (GP) - 4%, Open (PH)-1% Open (CC)-1%, Open (W)-17%, Open-27.5%.

## Reservation for North Eastern States

Reservations  in  tribal  areas  in  North  Eastern  States  of  Arunachal  Pradesh,  Meghalaya, Nagaland and Mizoram will be as under:

| State             |   Percentage of reservation in all four types of LPG Distributorships to be awarded to ST category |   %for Women category |   Balance %to be awarded to open category |
|-------------------|----------------------------------------------------------------------------------------------------|-----------------------|-------------------------------------------|
| Arunachal Pradesh |                                                                                                 49 |                    30 |                                        21 |
| Meghalaya         |                                                                                                 56 |                    30 |                                        14 |
| Nagaland          |                                                                                                 56 |                    30 |                                        14 |
| Mizoram           |                                                                                                 63 |                    30 |                                         7 |

## Annexure referred to in reply to part (a) & (b) of LOK Sabha Unstarred Question No. 2851  by  Shri  Rajeshbhai  Chudasama  regarding  'Criteria/Reservation  Policy  for RO/Gas Agencies/CNG Pumps '

## Norms/Criteria/Reservation Policy for Dealership Selection Guidelines

Dealer Selection by draw of lots / bidding have been implemented for opening of new Retail  Outlets  in  rural  as  well  as  urban  areas.  There  is  neither  marks-based  evaluation system  nor  interview  process  for  selection.  The  selection  is  carried  out  by  a  transparent system  of  draw  of  lots/Bidding.  Individuals  and  Non-  Individuals  can  apply.  All  applicants meeting the  eligibility  criteria  qualify  for  the  draw/bidding.  As  per  the  eligibility  criteria,  an applicant  has  to  meet  the  minimum  requirements  on  availability  of  suitable  land  at  the advertised location, Finance, Age and Educational Qualification. However, for Corpus fund locations, Finance is not an eligibility criterion.  All  categories  of  applicants  are  required to have suitable piece of land in the advertised location/area either by way of ownership / long term lease.

The detailed guidelines for selection of retail outlet dealerships which have come into effect from 21-05-2014 have provision for 22.5 percent reservation for SC/STs in allotment of retail  outlet  dealerships.  However,  distribution  between  Scheduled  Castes  (SCs)  and Scheduled Tribes (STs) will  vary in each State depending upon the ratio of SC/ST in the State as per latest available census data.

Adhering  to  the  broad  reservation  principles  under  the  constitutional  scheme  27% reservation for OBC category has been introduced. Reservation for SC/ST is 22.5% and the remaining  50.5%  is  for  Open  category.  Sub  categories  of  reservation  among  the  Main categories  i.e.  SC/ST,  OBC  &  Open  categories  have  been  introduced  to  take  care  of reservation for Defence personnel, Para Military Personnel/Central/State Govt. and Central/State  PSU  employees,  Physically  Handicapped  personnel,  Outstanding  Sports Persons and Freedom Fighters. Able bodied Ex servicemen are also made eligible under reservation for Defence personnel to enlarge the scope for Defence category.

Reservation  for  various  categories  in  all  the  States  except  Arunachal  Pradesh, Meghalaya, Nagaland and Mizoram are as under :-

| Category                                                                                                                                               | SC/ST   | OBC   | Open   | Total   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|---------|-------|--------|---------|
| Combined Category 1 (CC1) Comprising of :- (i) Defence Personnel & (ii) Para Military Personnel/Central/State Govt. and Central/State PSU employees    | 2%      | 2%    | 4%     | 8%      |
| Combined Category 2 (CC2) Comprising of :- (i) Physically Handicapped Persons (PH) (ii) Outstanding Sports Persons (OSP) & (iii) Freedom Fighters (FF) | 1%      | 1%    | 2%     | 4%      |

| SC/ST   | 19.50%   |     |        | 19.50%   |
|---------|----------|-----|--------|----------|
| OBC     |          | 24% |        | 24%      |
| Open    |          |     | 44.50% | 44.50%   |
| Total   | 22.50%   | 27% | 50.50% | 100%     |

Reservations  in  some  North  Eastern  States  of    Arunachal  Pradesh,  Meghalaya, Nagaland and Mizoram would continue to be as under as approved by MOP & NG earlier: -

| State                | Percentage of Regular & Rural RO Dealerships to be awarded to ST category   | Balance % to be awarded to 'Open' category   |
|----------------------|-----------------------------------------------------------------------------|----------------------------------------------|
| Arunachal Pradesh 70 |                                                                             | 30                                           |
| 80                   | 20                                                                          | Meghalaya                                    |
| 80                   | 20                                                                          | Nagaland                                     |
| Mizoram              | 90                                                                          | 10                                           |

No separate reservation for Women category has been made in the New Guidelines. However, in case of individual applicants, spouse will be made a partner up to a share of maximum 50% unless the spouse is already gainfully employed and/or do not wish to be made a partner in order not to dilute the financial and social status of women.

Draw of Lots / Bidding process:

In  the  Draw  of  Lots  /  Bidding  process,  priority  will  be  given  to  applicants  with  regard  to ownership of land as mentioned below:

Group 1: Applicants having suitable piece of land in the advertised location/area either by way of ownership / long term lease including in all reserved categories.

Group 2: Applicants having Firm offer of purchase or long term lease for a piece of suitable land including in all reserved categories.

Draw of lots /  Opening of  Bids  will  be  held  first  amongst  the  eligible  applicants  with  land falling in Group 1.

Draw of lots amongst eligible applicants of Group - 2 will be held only if there is no applicant in Group 1 or applicants in Group 1 have been disqualified or withdrawn.

The entire proceedings of the draw/bidding will be video graphed in one shot.

The result of the draw will be displayed on the notice board of the venue immediately and at Company office. It will also be hosted on the website of the Company.

All  of  the  above  are  common  for  allotment  of  Regular  and  Rural  category  of  ROs.  The Parameters which are different for Regular and Rural category of ROs are as under:

| Parameter                         | Applicability                                          | Regular RO                                                                                                                                                                                                     | Rural RO                                                                                                                                                                                                       |
|-----------------------------------|--------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Non-Refundable Application Fee    | All                                                    | Rs. 1000/- (SC/ST - Rs.500/-)                                                                                                                                                                                  | Rs. 100/- (SC/ST - Rs.50/-)                                                                                                                                                                                    |
| Advertised location               | All                                                    | In any class of market i.e. Urban / Highway                                                                                                                                                                    | Except on NH / SH                                                                                                                                                                                              |
| Non-refundable Minimum Bid Amount | A- Site RO (except SC/ST category locations under CFS) | Rs. 30.0 Lac {Initial Down Payment (IDP) - 1.5 Lacs}                                                                                                                                                           | Rs. 10.0 Lacs {Initial Down Payment (IDP) - 0.5 Lacs}                                                                                                                                                          |
| Non-Refundable Fixed Fee          | B- Site RO                                             | Rs. 15.0 Lacs                                                                                                                                                                                                  | Rs. 5.0 Lacs                                                                                                                                                                                                   |
| Refundable Security Deposit       | All                                                    | Rs. 5.0 Lacs                                                                                                                                                                                                   | 0.5 Lacs                                                                                                                                                                                                       |
| Nationality / Residency criteria  | All                                                    | Should be Indian Citizen and Resident of India as per Income tax rules.                                                                                                                                        | Should be Indian Citizen and Resident of India as per Income tax rules. For Rural ROs the applicant has to be residing in the district of the advertised location.                                             |
| Educational Qualifications        | All                                                    | Minimum 10th pass (examination conducted by a Board /School) for all categories except Freedom Fighter category. Freedom fighter category will be exempted from minimum educational qualification requirement. | Minimum 10th pass (examination conducted by a Board /School) for all categories except Freedom Fighter category. Freedom fighter category will be exempted from minimum educational qualification requirement. |