Lok Sabha Question No. 1859 (UNSTARRED), answered on 2025-03-11
Subject: PACS for Petrol/Diesel Outlets and LPG Distributorships
Ministry: COOPERATION
Asked by: Dr. Nishikant Dubey, Shri Naba Charan Majhi, Shri Ravindra Shukla Alias Ravi Kishan, Shri Alok Sharma, Shri Gajendra  Singh Patel, Shri Pradeep Kumar Singh, Smt. Aparajita Sarangi, Shri Praveen Patel

## GOVERNMENT OF INDIA

## MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 1859 TO BE ANSWERED ON 11 th  MARCH, 2025

## PACS for Petrol/Diesel Outlets and LPG Distributorships

## †1859. Shri Pradeep Kumar Singh:

- Dr. Nishikant Dubey:

Shri Praveen Patel:

Shri Alok Sharma:

Shri Ravindra Shukla Alias Ravi Kishan:

- Smt. Aparajita Sarangi:

Shri Naba Charan Majhi:

Shri Gajendra Singh Patel:

Will the Minister of Cooperation ( सहकारिता मंत्री ) be pleased to state:

- (a) the measures being taken to expedite the application process for Petrol/Diesel Outlets  and  LPG  Distribution  Agencies  of  Primary  Agriculture  Cooperative  Credit Societies (PACS);
- (b) whether there is any relaxation in eligibility criteria to encourage participation of PACS in rural and economically weaker areas;
- (c) the steps being taken to ensure PACS have access to necessary infrastructure including land and storage facilities to set up and operate fuel stations; and
- (d) the  benefits  to  farmers  and  rural  communities  by  allowing  PACS  to  operate Petrol/Diesel Outlets and LPG Distribution Agencies?

## ANSWER

## MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

(a) and (b): Yes,  Sir.  The  Government  has  allowed  Primary  Agricultural  Credit Societies (PACS) to operate Retail Petrol/ Diesel outlets and LPG Distributorships. In order to prioritize PACS under Combined Category 2 (CC-2) for retail Petrol/ Diesel dealership  and  Combined  Category  (CC)  for  LPG  Distributorship  under  which  1% reservation  is  provided,  Ministry  of  Petroleum  and  Natural  Gas  has  revised  its guidelines.  Further,  PACS  have  also  been  given  one-time  option  to  convert  their wholesale consumer pumps into Retail Outlets for which Ministry of Petroleum and Natural Gas has released detailed guidelines.

PACS can apply online against the advertisements issued by Oil Marketing Companies (OMCs) for Retail Petrol/ Diesel outlets and LPG Distributorships, which simplifies the application process. In order to expedite the application process regular review meetings are held with States/ UTs and OMCs to ensure completion of the entire process.

(c): The  eligibility  criteria  outlined  in  the  guidelines  mandate  PACS  to  submit documents related to registration, land availability, and financial status for operating Retail Petrol/Diesel Outlets and LPG Distributorships. Accordingly, PACS that meet these criteria are considered for selection by the Oil Marketing Companies (OMCs).

(d):     Allowing PACS to operate Petrol/Diesel Outlets and LPG Distribution Agencies brings  multiple  benefits  to  farmers  and  rural  communities.  This  initiative  aims  to enhance  fuel  accessibility  in  remote  areas,  ensuring  timely  availability  of  fuel  for agricultural machinery, thereby reducing operational delays and costs for farmers. LPG distributorships  operated  by  PACS  aims  to  provide  affordable  and  easily  accessible cooking  gas  to  rural  households,  improving  living  standards.  Additionally,  these businesses seek to create new revenue streams for PACS, making them financially selfsustaining while generating employment opportunities in rural areas. This initiative is a major step toward rural economic development, strengthening the role of cooperatives in enhancing rural livelihoods and infrastructure.

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