Lok Sabha Question No. 3813 (UNSTARRED), answered on 2018-03-19
Subject: Criteria to Allot LPG Agencies
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAMDAS CHANDRABHANJI TADAS, VIKRAM USENDI, CHANDRAKANT BHAURAO KHAIRE, CHANDRA PRAKASH JOSHI

## LOK SABHA UNSTARRED QUESTION NO. 3813 TO BE ANSWERED ON 19 th  March, 2018

## CRITERIA TO ALLOT LPG AGENCIES

3813.  SHRI RAMDAS C. TADAS: SHRI VIKRAM USENDI: SHRI CHANDRAKANT KHAIRE: SHRI CHANDRA PRAKASH JOSHI:

## पेट्रोलियम एवं प्राक ृ लिक गैस मंत्री

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

- (a)  the  criteria  fixed  by  the  Government  to  allot  LPG  agencies,  petrol  pumps  and CNG pumps in the country;
- (b)  whether  any  type of  reservation/  quota has been fixed for SCs/STs/OBCs/ Exservicemen and defence personnel in the allotment of petrol pumps, gas agencies and CNG pumps and if so, the details thereof;
- (c) whether there is any restriction on increasing the number of LPG agencies/ petrol pumps and if so, the details thereof and the steps taken to increase the number of LPG agencies and petrol pumps in the country, State/UT-wise including Maharashtra and Rajasthan;
- (d)  whether  the  number  of  petrol  pumps  functioning  in  the  rural  areas  is  less  as compared to the urban areas and if so, the details thereof along with any proposal to open new petrol pumps in proportion to population in the rural and urban areas of the country, State/UT-wise including Chhattisgarh;
- (e)  the  number  of  cases  for  opening  of  petrol  pumps  taken  for  consideration, scrutinised  and  interviews  held  along  with  the  number  of  draws  carried  out  and allotment  of  petrol  pumps  made  during  the  last  three  years  and  the  current  year, State/UT-wise; and
- (f)  whether the Government had proposed a scheme to allot retail petrol pumps to the  land  owners  and  if  so,  the  details  thereof  along  with  the  reasons  for  not implementing the said scheme so far?

## ANSWER

## पेट्रोलियम एवं प्राक ृ लिक गैस मंत्री ( श्री धमेन्द्र प्रधान )

MINISTER OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a)  &  (b)  Eligibility  norms  and  reservation  in  allotment  of  LPG  distributorship  and retail outlets is at Annexure-I & II respectively.

Under the Petroleum and Natural Gas Regulatory Board (PNGRB) Act, 2006, the  Government  has  established  PNGRB  which  is  the  statutory  authority  to  grant authorization for the development of City Gas Distribution (CGD) network. Standalone CNG stations are set up by CGD companies which have their selection guidelines for setting up of CNG stations.

(c)  to (e) Keeping in view the demand and consumption of motor fuels in the future, Retail  Outlet  network  expansion  including  in  the  Rural/Urban/Tribal  areas  by  Oil Marketing  Companies  (OMCs)  is  a  regular  and  ongoing  exercise.  Locations  for setting  up  new  Retail  Outlets  are  identified  by  OMCs  after  carrying  out  required feasibility study by the field. The locations found feasible and economically viable are rostered in OMCs Marketing Plan for advertisement.

State/UT-wise  details  of  number  of  locations  advertised,  commissioned  and LOI issued as on  01.01.2018, are at Annexure-III.

Appointment of LPG distributorships is a continuous process and locations for setting up of LPG distributorships are identified based on sale potential that makes them commercially viable.

As on 01.01.2018, there are 19469 LPG distributors across the country. With a  view  to  strengthen  the  LPG  distribution  infrastructure,  Oil  Marketing  Companies (OMCs)  have  recently  advertised  6147  locations  across  the  country,  which  are mostly in rural areas. The Government has also approved setting up of 115 Durgam Kshetriya Vitraks (DKVs) through different State Governments/Organisations, which are at various stages of commissioning.

(f) Under the current selection policy, land is an eligibility criteria and the candidates applying under any category has to offer suitable land in the application form.

## Norms/Criteria/Reservation  for Selection of LPG Distributorships

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 Oil Marketing Company(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

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 |

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

## 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                |                                                                             | Nagaland 20                                  |
| 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                                                                                                                                                                                                   | Rs. 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. |

| PQ 3813                                                                                                                | PQ 3813                                                                                                                |                                                                                                                        |                                                                                                                        | ANNEXURE-                                                                                                              |
|------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
| Number of Retail Outlet locations advertised/commissioned/LOI issued(As per advertisement in 2014-15) as on 01.01.2018 | Number of Retail Outlet locations advertised/commissioned/LOI issued(As per advertisement in 2014-15) as on 01.01.2018 | Number of Retail Outlet locations advertised/commissioned/LOI issued(As per advertisement in 2014-15) as on 01.01.2018 | Number of Retail Outlet locations advertised/commissioned/LOI issued(As per advertisement in 2014-15) as on 01.01.2018 | Number of Retail Outlet locations advertised/commissioned/LOI issued(As per advertisement in 2014-15) as on 01.01.2018 |
| S.No                                                                                                                   | State/UT                                                                                                               | No. of Locations Advertised                                                                                            | No. of locations commissioned                                                                                          | No. of locations where LOI issued                                                                                      |
| 1                                                                                                                      | Andaman& Nicobar                                                                                                       | 9                                                                                                                      | 0                                                                                                                      | 0                                                                                                                      |
| 2                                                                                                                      | Andhra Pradesh                                                                                                         | 1333                                                                                                                   | 188                                                                                                                    | 253                                                                                                                    |
| 3                                                                                                                      | Arunachal Pradesh                                                                                                      | 47                                                                                                                     | 3                                                                                                                      | 16                                                                                                                     |
| 4                                                                                                                      | Assam                                                                                                                  | 330                                                                                                                    | 27                                                                                                                     | 75                                                                                                                     |
| 5                                                                                                                      | Bihar                                                                                                                  | 2514                                                                                                                   | 146                                                                                                                    | 556                                                                                                                    |
| 6                                                                                                                      | Chandigarh                                                                                                             | 0                                                                                                                      | 0                                                                                                                      | 0                                                                                                                      |
| 7                                                                                                                      | Chattisgarh                                                                                                            | 1097                                                                                                                   | 106                                                                                                                    | 212                                                                                                                    |
| 8                                                                                                                      | Dadra Nagar Haveli                                                                                                     | 25                                                                                                                     | 1                                                                                                                      | 4                                                                                                                      |
| 9                                                                                                                      | Daman &Diu                                                                                                             | 26                                                                                                                     | 1                                                                                                                      | 1                                                                                                                      |
| 10                                                                                                                     | Delhi                                                                                                                  | 33                                                                                                                     | 0                                                                                                                      | 3                                                                                                                      |
| 11                                                                                                                     | Goa                                                                                                                    | 96                                                                                                                     | 0                                                                                                                      | 3                                                                                                                      |
| 12                                                                                                                     | Gujarat                                                                                                                | 3074                                                                                                                   | 278                                                                                                                    | 469                                                                                                                    |
| 13                                                                                                                     | Haryana                                                                                                                | 1536                                                                                                                   | 140                                                                                                                    | 296                                                                                                                    |
| 14                                                                                                                     | Himachal Pradesh                                                                                                       | 188                                                                                                                    | 33                                                                                                                     | 40                                                                                                                     |
| 15                                                                                                                     | Jammu &Kashmir                                                                                                         | 241                                                                                                                    | 14                                                                                                                     | 20                                                                                                                     |
| 16                                                                                                                     | Jharkhand                                                                                                              | 966                                                                                                                    | 88                                                                                                                     | 120                                                                                                                    |
| 17                                                                                                                     | Karnataka                                                                                                              | 2219                                                                                                                   | 143                                                                                                                    | 423                                                                                                                    |
| 18                                                                                                                     | Kerala                                                                                                                 | 1214                                                                                                                   | 76                                                                                                                     | 139                                                                                                                    |
| 19                                                                                                                     | Lakshadweep                                                                                                            | 0                                                                                                                      | 0                                                                                                                      | 0                                                                                                                      |
| 20                                                                                                                     | Madhya Pradesh                                                                                                         | 2844                                                                                                                   | 302                                                                                                                    | 567                                                                                                                    |
| 21                                                                                                                     | Maharashtra                                                                                                            | 3914                                                                                                                   | 274                                                                                                                    | 821                                                                                                                    |
| 22                                                                                                                     | Manipur                                                                                                                | 42                                                                                                                     | 2                                                                                                                      | 22                                                                                                                     |
| 23                                                                                                                     | Meghalaya                                                                                                              | 21                                                                                                                     | 1                                                                                                                      | 17                                                                                                                     |
| 24                                                                                                                     | Mizoram                                                                                                                | 51                                                                                                                     | 0                                                                                                                      | 11                                                                                                                     |
| 25                                                                                                                     | Nagaland                                                                                                               | 39                                                                                                                     | 0                                                                                                                      | 4                                                                                                                      |
| 26                                                                                                                     | Odisha                                                                                                                 | 1088                                                                                                                   | 110                                                                                                                    | 147                                                                                                                    |
| 27                                                                                                                     | Puducherry                                                                                                             | 38                                                                                                                     | 1                                                                                                                      | 3                                                                                                                      |
| 28                                                                                                                     | Punjab                                                                                                                 | 1207                                                                                                                   | 95                                                                                                                     | 152                                                                                                                    |
| 29                                                                                                                     | Rajasthan                                                                                                              | 2485                                                                                                                   | 284                                                                                                                    | 574                                                                                                                    |
| 30                                                                                                                     | Sikkim                                                                                                                 | 58                                                                                                                     | 5                                                                                                                      | 8                                                                                                                      |
| 31                                                                                                                     | Tamil Nadu                                                                                                             | 2736                                                                                                                   | 286                                                                                                                    | 440                                                                                                                    |
| 32                                                                                                                     | Telangana                                                                                                              | 1076                                                                                                                   | 211                                                                                                                    | 357                                                                                                                    |
| 33                                                                                                                     | Tripura                                                                                                                | 39                                                                                                                     | 2                                                                                                                      | 3                                                                                                                      |
| 34                                                                                                                     | Uttar Pradesh                                                                                                          | 3899                                                                                                                   | 451                                                                                                                    | 960                                                                                                                    |
| 35                                                                                                                     | Uttarakhand                                                                                                            | 351                                                                                                                    | 41                                                                                                                     | 57                                                                                                                     |
| 36                                                                                                                     | West Bengal                                                                                                            | 1792                                                                                                                   | 109                                                                                                                    | 137                                                                                                                    |
|                                                                                                                        | ALL-INDIA                                                                                                              | 36628                                                                                                                  | 3418                                                                                                                   | 6910                                                                                                                   |