Lok Sabha Question No. 31 (STARRED), answered on 2018-02-05
Subject: Retail Outlets to SCs/STs
Ministry: PETROLEUM AND NATURAL GAS
Asked by: HARI BABU KAMBHAMPATI

## GOVERNMENT OF INDIA MINISTRY OF PETROLEUM & NATURAL GAS

LOK SABHA STARRED QUESTION NO.31 TO BE ANSWERED ON 5 TH  FEBUARY, 2018

## RETAIL OUTLETS TO SCs/STs

## *31.    DR. KAMBHAMPATI HARIBABU :

## QUESTION

पेट्रोलियम एवं प्राक ृ लिक गैस मंत्री

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

- (a) the details of policy for allotment of Retail Outlets (ROs) to the people / candidates belonging to SCs/STs by the Oil Marketing Companies;
- (b) whether there is a huge shortfall in allotment of ROs to SCs/STs and if so, the details thereof, State/UT-wise; and
- (c) the action taken/being taken by the Government  to fill this gap/shortfall?

## ANSWER

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

## MINISTER IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a)  to (c)  - A statement is laid on the table of the House.

****

(a)  -    Oil  Marketing  Companies  (OMCs)  have  implemented  Dealer  Selection Guidelines by Draw of Lots / Bidding with effect from 21-5-2014. The reservation and the  eligibility  criteria  and  other  parameters  for  selection  of  retail  outlet  dealers  for SC/ST  category  and  others  in case  of individual applicants (Proprietorship / Partnership) are given in Anneuxre-1.

(b)  &  (c)  -  Oil  Marketing  Companies  (OMCs)  had  issued  advertisement  to  fulfill backlog  as  per  the  dealership  selection  guidelines  effective  from  21-5-2014.  The State/OMC-wise number of locations advertised are given in Annexure 2, for which the selection process is under various stages.

In addition to the above, the following steps are also taken by MOP&NG to fulfill the Reservation % for SC/ST category in allotment of Retail Outlet dealerships to SCs/STs :

- (a) Extension of  time  limit  has  been  approved  by  Ministry  of  Petroleum  and Natural Gas (MoPNG) for a further period of 2 years i.e. upto 31-3-2018 or for  a  period  of  five  years  from  date  of  issue  of  offer  letter,  whichever  is later,  to  the  pending  Letter  of  Intent  (LOI)  holders  of  SC/ST  and  other eligible candidates under corpus fund scheme to arrange land at a place of their choice anywhere in the country irrespective of State/Class of market subject to the offered land meeting techno commercial viability norms has been granted by MoPNG.
- (b) In addition there is a policy of divestment of temporary Company Owned Company  Operated  (COCO)  for  the  certain  categories  of  pending  LOI holders including SCs/STs.
- (c) Ministry has also written to Chief Ministers of all States/UTs to make the suitable plots available especially for SCs/STs categories for fuel retailing so  that  they  could  be  preferentially  allotted  to  SCs/STs  categories  of allottees to meet the States/UTs objective of social upliftment.

- (d) Relaxation provided to applicants belonging to SC/ST category to offer land or alternative land (as the case may be) in the advertised location/stretch in case the applicant has not offered the land in the application or if the offered land  was  rejected  due  to  not  meeting  the  laid  down  criteria  provided  the applicant meet all other eligibility criteria. This is applicable for the locations advertised under SC/ST category where selection could not be made either due to none of the offered land were found suitable or applicant(s) did not offer land. Further, approval for extension of time by additional 6 months to offer land/alternate land by SC/ST applicant was given on 23-1-2018.
- (e) OMCs  are  actively  pursuing  with all District / State authorities for allocation of land for commissioning of ROs for SCs/STs.
- (f) OMCs  are  also  participating  in  auctions  /  bidding  process  of  various Government  agencies  for  getting  land  and  thereby  setting  up  ROs  for SCs/STs.

****

## Annexure referred  to  in  reply  to  part  (a)  of  Lok  Sabha  Starred  Question    No.  31 asked  by  Dr.  Kambhampati  Haribabu,  Hon`ble  MP  regarding  'Retail  Outlets  to SCs/STs'.

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 &                                         | 2%      | 2%    | 4%     | 8%      |
| (ii) Para Military Personnel/Central/State Govt. and Central/State PSU employees |         |       |        |         |
| Combined Category 2 (CC2) Comprising of :-                                       |         |       |        |         |
| (i) Physically Handicapped Persons (PH)                                          | 1%      | 1%    | 2%     | 4%      |
| (ii) Outstanding Sports Persons (OSP) &                                          |         |       |        |         |
| (iii) Freedom Fighters (FF)                                                      |         |       |        |         |
| SC/ST                                                                            | 19.50%  |       |        | 19.50%  |
| OBC                                                                              |         | 24%   |        | 24%     |
| Open                                                                             |         |       | 44.50% | 44.50%  |
| Total                                                                            | 22.50%  | 27%   | 50.50% | 100%    |

Reservations in states of Arunachal Pradesh, Meghalaya, Nagaland and Mizoram are as under as approved by MOP & NG: -

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

The locations identified by the Oil Companies for putting up the Retail Outlets are allotted to the Roster based on Draw of Lots in order to maintain transparency and avoid complaints.

The eligibility  criteria  &  other  parameters for selection of Retail Outlet Dealers for SC/ST category and others in case of Individual applicants (Proprietorship/Partnership) are as under:-

| Parameter                 | SC/ST                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | OBC/Open                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Nationality               | Should be Indian Citizen and Resident of India.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Should be Indian Citizen and Resident of India.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Age                       | 21 - 55 years except for FF category                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 21 - 55 years except for FF category                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Educational Qualification | Graduate for regular ROs and 10+2 for rural ROs except for CC1 & CC2 categories. For CC1 category (i.e. Defence, Para Military, Central/State Government, Central/State PSU employees) and CC2 category (i.e. Physically handicapped, Freedom fighters, Outstanding Sports persons), the eligibility is 10+2 for Regular ROs and 10 th Pass for Rural ROs. W.e.f. 3.3.2016 on prospective basis: Minimum 10 th pass (examination conducted by a Board/School) for all categories except Freedom Fighter category. Freedom Fighter category will be exempted from minimum                                                                                                    | Graduate for regular ROs and 10+2 for rural ROs except for CC1 & CC2 categories. For CC1 category (i.e. Defence, Para Military, Central/State Government, Central/State PSU employees) and CC2 category (i.e. Physically handicapped, Freedom fighters, Outstanding Sports persons), the eligibility is 10+2 for Regular ROs and 10 th Pass for Rural ROs. W.e.f. 3.3.2016 on prospective basis: Minimum 10 th pass (examination conducted by a Board/School) for all categories except Freedom Fighter category. Freedom Fighter category will be exempted from minimum |
| Land                      | Land is an eligibility criteria. Offered land may be 'Owned' (Own land or on long term basis) or 'Firm Offer' (Offer for a suitable piece of land for purchase or long term lease). Preference to candidates with 'Owned' land. The offered land would be taken on lease/purchased and fully developed by Corporation. Relaxation has been provided to candidates belonging to SC/ST category to offer land or alternate land (as the case may be) in the advertised location / stretch in case the SC/ST category candidate has not offered or offered land gets rejected during technical evaluation. This condition is applicable for cases of SC/ST category locations, | Land is an eligibility criteria. Offered land may be 'Owned' (Own land or on long term basis) or 'Firm Offer' (Offer for a suitable piece of land for purchase or long term lease). Preference to candidates with 'Owned' land. The offered land would be taken on lease/purchased and fully developed as Corporation owned sites. In case of Dealer controlled sites, the offered land and the super structure will be developed by the dealer. Pump, tank, automation, signages, etc. will be provided by the Corporation.                                             |

|                                   | where selection could not be made either due to none of the offered land found technically suitable or the application did not offer land. This relaxation has been extended as per approval given on 23.1.2018 by another period of six months.                                                                                                                                        |                                                                                                                                                                                                      |
|-----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Finance                           | In case of locations reserved for SC/ST category, Finance will not be eligibility criteria.                                                                                                                                                                                                                                                                                             | Finance is an eligibility criteria. For Regular ROs the fund requirement for eligibility will be Rs. 25 lakhs and in respect of Rural ROs the fund requirement for eligibility will be Rs. 12 lakhs. |
| Development of RO                 | All locations rostered as SC/ST category will be developed as 'A' site / 'CC' ROs by the concerned Oil Company.                                                                                                                                                                                                                                                                         | Locations rostered as OBC & Open category may be developed as 'A' site (CC ROs) or 'B' site (DC ROs).                                                                                                |
| Selection Process                 | By Draw of Lots from among the eligible applicants.                                                                                                                                                                                                                                                                                                                                     | By Draw of Lots from among the eligible applicants for 'B' site ROs. By Bidding Process from among the eligible applicants for 'A' site ROs (Draw of Lots in case of tie in the highest Bid amount). |
| Application fee                   | Non refundable application fee of Rs.50/- in respect of Rural ROs & Rs. 500/- in respect of Other ROs.                                                                                                                                                                                                                                                                                  | Non refundable application fee of Rs.100/- in respect of Rural ROs and Rs. 1000/- in respect of Other ROs.                                                                                           |
| Non refundable fixed fee          | Not applicable.                                                                                                                                                                                                                                                                                                                                                                         | For Dealer Owned Dealer Operated ('B' Site) ROs. Rs. 5 lakhs for Rural and Rs. 15 lakhs for other ROs.                                                                                               |
| Non refundable Minimum bid amount | Not applicable.                                                                                                                                                                                                                                                                                                                                                                         | For Company Owned Dealer Operated ('A' Site) ROs. Rs. 10 lakhs for Rural and Rs. 30 lakhs for other ROs.                                                                                             |
| Security Deposit                  | Rs. 50,000/- for Rural ROs and Rs. 5 lakhs for others.                                                                                                                                                                                                                                                                                                                                  | Rs. 50,000/- for Rural ROs and Rs. 5 lakhs for others.                                                                                                                                               |
| Financial Assistance              | The Oil Company will make available the ready Retail Outlet with all basic facilities at its cost on the land offered by the candidate and procured by the Company. Oil Company will also provide adequate working capital loan for a full operation cycle of the operation of the Dealerships. Both the working capital as well as 11% per annum interest thereon will be recovered in | No Financial assistance.                                                                                                                                                                             |

| 100 equal monthly installments commencing from the 13th month of commissioning of the Dealership. Oil Companies are empowered to suitably amend working capital loan guidelines considering the prevalent financial scenario as there has been decrease in the bank lending rates than 11% per annum applied presently against loan to SC/ST candidate.   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Annrexure referred to in reply to part (b) & (c ) of Lok Sabha Starred Question No.31 asked by Dr. Kambhampati Haribabu, Hon`ble MP regarding 'Retail Outlets to SCs/STs'.

## Industry - State/UT-wise number of location advertised and response received

| State             |   No. of Locations advertised |   No. of locations for which response received |
|-------------------|-------------------------------|------------------------------------------------|
| Andaman& Nicobar  |                             1 |                                              0 |
| Andhra Pradesh    |                           252 |                                            158 |
| Arunachal Pradesh |                             3 |                                              2 |
| Assam             |                            52 |                                             46 |
| Bihar             |                           422 |                                            160 |
| Chandigarh        |                             0 |                                              0 |
| Chattisgarh       |                           160 |                                             64 |
| Dadra&NH          |                             1 |                                              0 |
| Daman &Diu        |                             2 |                                              0 |
| Delhi             |                             6 |                                              5 |
| Goa               |                             5 |                                              2 |
| Gujarat           |                           257 |                                            129 |
| Haryana           |                           432 |                                            170 |
| Himachal          |                            20 |                                              9 |
| J&K               |                            49 |                                             13 |
| Jharkhand         |                           116 |                                             27 |
| Karnataka         |                           530 |                                            214 |
| Kerala            |                           120 |                                             56 |
| Lakshadweep       |                             0 |                                              0 |
| Madhya Pradesh    |                           413 |                                            164 |
| Maharashtra       |                           671 |                                            357 |
| Manipur           |                             7 |                                              7 |
| Meghalaya         |                             5 |                                              5 |
| Mizoram           |                            23 |                                             23 |
| Nagaland          |                             0 |                                              0 |
| Odisha            |                           187 |                                             72 |
| Pondicherry       |                            12 |                                              6 |
| Punjab            |                           263 |                                             56 |
| Rajasthan         |                           318 |                                            207 |
| Sikkim            |                             6 |                                              2 |
| Tamil Nadu        |                           460 |                                            229 |
| Telangana         |                           242 |                                            172 |
| Tripura           |                             7 |                                              6 |
| Uttar Pradesh     |                           795 |                                            596 |
| Uttarakhand       |                            42 |                                             19 |
| West Bengal       |                           115 |                                             41 |
| ALL-INDIA         |                          5994 |                                           3017 |