Lok Sabha Question No. 2854 (UNSTARRED), answered on 2017-03-20
Subject: Holiday Scheme for RO
Ministry: PETROLEUM AND NATURAL GAS
Asked by: ADVOCATE NARENDRA KESHAV SAWAIKAR

## LOK SABHA UNSTARRED QUESTION NO. 2854 TO BE ANSWERED ON 20 TH  MARCH, 2017

## HOLIDAY SCHEME FOR RO

## 2854.     ADV. NARENDRA KESHAV SAWAIKAR :

## पेट्रोलियम एवं प्राक ृ लिक गैस मंत्री

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

- (a)  whether the Government proposes a Holiday Scheme for under performing Staterun Retail Outlets and if so, the details thereof; and
- (b)   whether the interest of original owners of these Retail Outlets have been taken into consideration before implementing the scheme and if so, the details thereof?

## 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) - Based on the proposal received from Oil Marketing Companies (OMCs), the Ministry of Petroleum and Natural Gas has approved 'Holiday Scheme' for retail outlet dealers. The salient features of the Holiday Scheme are provided in Annexure-I.

While formulating the scheme, interests of all stake holders including motoring public, dealers and OMCs have been kept in mind.

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## ANNEXURE - I

## Annexure  referred  to  in  reply  to  part  (a)  of  Lok  Sabha  unstarred  Question  No. 2854  asked  by  Adv.  Narendra  Keshav  Sawaikar,  Hon`ble  MP  regarding  Holiday Scheme for RO'.

The salient features of the Holiday Scheme are as under:-

1.  Whenever a Retail Outlet remains closed/low selling due to various reasons such  as  temporary  financial  problems  of  the  dealer,  dispute  among  family members/partners after the death of proprietor/partner(s), etc., the dealership may be taken over and sales be restored by appointing an Ad-hoc dealer, as per  the  extant  policy.  This  will  provide  reasonable  time  to  the  concerned dealer to overcome/resolve the issues to resume dealership operation. The dealership shall be put on 'Holiday' and shall be given specific time bound target for working on the plans which should result into normal operation of the RO by him/her, on mutually agreed terms.
2.  In case of 'A' site/ CC site RO, the site is already in the name/possession of the  OMCs  as  a  leased  site/outright  purchase  and  the  site  can  be  straight away taken over in the event of Dealer availing the Holiday scheme. However no compensation shall be payable to the dealer based on Sales Volume.
3. In  case  of  'B'  site  /  'DC'  site  RO,  negotiation  can  be  done  with  the  dealer /landowner to provide lease of the RO premises as is done for any site being taken on lease / leave and license by Corporation only with the exception that the lease / leave and license can be short term depending upon the period for which the RO is being handed over to OMC. However no compensation shall be payable to the dealer based on Sales Volume.
4.  A Statement of Account of the dealership shall be prepared by the OMCs and any  outstanding  amount  shall  be  recovered  from  the  dealership  /  Security Deposit  available  with  OMCs.  The  existing  dealer  shall  be  explained  the reasons for Holiday in writing and the proposed action plan with timelines for restoring / proposed handing over the RO to the dealer upon overcoming of the financial problems / dispute.
5.  The Ad-hoc dealer shall  be appointed  as  per  prevailing  guidelines  with  the exception that the tenure of ad-hoc dealership shall be upto 2 years i.e. in line with the tenure of Holiday extended to the closed RO/low selling RO dealer. However, it can be extended further, in case the dealer on Holiday resigns or does not come forward to take over after holiday period by 4 months or till such time the RO is divested, whichever is earlier.
6.  In case the original dealer or the Legal heirs/Partner(s) of 'B' (DC sites) do not resolve the issues and do not take up the management/operation of the RO dealership after completion of the Holiday period,  OMCs may look into their  commercial  interest  and  extend  the  holiday  scheme  by  exploring  the option of long lease. However, a new adhoc dealer shall be appointed after every 2 years as per prevailing ad-hoc dealership selection policy.
7.  The dealer on Holiday shall be allowed reconstitution of the dealership as per the prevailing guidelines at the time of taking back the dealership.
8.  The  RO  will  be  restored  to  the  Original  or  to  the  Reconstituted  (wherever applicable) dealer at the end of the Holiday time period.
9.  The period for a dealer to be put on/avail the Holiday scheme shall be up to 2 years, unless extended as mentioned above. However, the dealer shall have the option to seek restoration of the RO before 2 years with an undertaking that after restoration the RO shall sell to the potential/target set by the OMC.
10.  This  opportunity  under  'Holiday'  Scheme  would  be  available  to  the  dealers only once.

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