Lok Sabha Question No. 77 (UNSTARRED), answered on 2020-02-03
Subject: New Retail Fuel Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: M. Selvaraj, Khagen Murmu, Andimuthu Raja, Ajay (Teni) Misra

## LOK SABHA

## UNSTARRED QUESTION NO. 77

## TO BE ANSWERED ON 3 rd  FEBRUARY, 2020

## New Retail Fuel Policy

## 77. SHRI M. SELVARAJ:

SHRI KHAGEN MURMU:

SHRI A. RAJA:

SHRI AJAY KUMAR MISRA TENI:

पेट्रोल ियम एवं प्राक ृ तिक गैस मंत्री

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

- (a) the features of the new liberalized retail fuel policy along with the details of the criteria fixed under this policy;
- (b) the reasons for allowing non oil companies to market fuel within the country;
- (c) the details of the target set through this policy across the country, State-wise;
- (d)  whether  the  Government  has  fixed  any  norms  with  regard  to  rural,  remote areas  under  this  policy  and  if  so,  the  details  thereof  and  if  not,  the  reasons therefor;
- (e) the details of the number of applications received for licence under this policy so far within the country including Tamil Nadu along with the number of approved applications; and
- (f)  whether the Government has made compulsory with regard to green fuel for the licence holder under this policy and if so, the details thereof and the reasons therefor?

## ANSWER

पेट्रोल ियम एवं प्राक ृ तिक गैस मंत्री (श्री धमेन्द्र प्रधान)

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) to (d) Ministry  of  Petroleum  and  Natural  (MoPNG)  Gas  vide  Resolution dated  08.11.19  revised  the  guidelines  for  authorization  to  market transportation  fuels  which  have  been  published  in  the  Gazette  of India. The revised guidelines would promote ease of doing business and  boost  private players to invest in retail sector.  The  said Resolution is available on the website of MoPNG. The main features of the said guidelines are as below :-

- (i) The resolution applies for marketing of only Motor Spirit and High Speed Diesel for 'Bulk' and 'Retail' business.
- (ii) An entity desirous of seeking authorisation for either retail or bulk must have a minimum net worth of Rs. 250 crore at the time  of  making  application.  In  case  authorization  is  required for  both  retail  and  bulk,  minimum  net  worth  will  be  Rs.500 crore.
- (iii) Separate applications to be made for retail and Bulk business.
- (iv) For retail authorisation, an entity have to set up at least 100 retail outlets, out of which 5 % should be in the notified remote areas within 5 years of the grant of authorization. An effective mechanism  has  been  prescribed  to  ensure  that  the  entity deliver on its commitment to set up the ROs in remote areas.
- (v) An  entity  is  required  to  deposit  prescribed  Bank  Guarantee amount as a security at  the  time  of  grant  of  authorization  in addition to application fee.
- (e) No application has been received in MoPNG under this policy.
- (f) In addition to conventional fuels, the authorized entities are required to install facilities for marketing at least one new generation alternate fuels like  Compressed  Natural  Gas  (CNG),  biofuels,  Liquefied Natural  Gas  (LNG),  electric  vehicle  charging  points  etc.  at  their proposed retail outlets (RO) within three years of operationalization of the said outlet subject to the entity complying with various other statutory guidelines.

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