Lok Sabha Question No. 220 (STARRED), answered on 2016-08-01
Subject: Distribution of LPG/CNG/Petrol Pump by foreign Companies
Ministry: PETROLEUM AND NATURAL GAS
Asked by: HARI NARAYAN RAJBHAR, VISHNU DAYAL RAM

## LOK SABHA STARRED QUESTION NO.   220

## TO BE ANSWERED ON 1st AUGUST, 2016

## DISTRIBUTION OF LPG/CNG/PETROL PUMP BY FOREIGN COMPANIES

* 220. SHRI HARINARAYAN RAJBHAR :

SHRI VISHNU DAYAL RAM :

## QUESTION पेट्रोलियम एवं प्राक ृ लिक गैस मंत्री

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

- (a) whether the Government proposes to authorize the foreign companies to undertake retail distribution of petrol/diesel in the country and if so, the details of mechanism/criteria thereof;
- (b) the number of such retail outlets set up/proposed to be set up in the coming years, State/UT/company-wise;
- (c) whether the Government has finalized any scheme for assured distribution of petrol, diesel,  LPG  and  CNG  in  various  states  and  decontrol  the  distribution  of  petroleum products in the country and if so, the details thereof; and
- (d) the steps take/being taken in this regard, State/UT-wise??

## 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)   to  (d) -   A statement is laid on the table of the House.

*****

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  THE  LOK  SABHA STARRED  QUESTION  NO.220  ASKED  BY  SHRI  HARINARAYAN  RAJBHAR  AND  SHRI VISHNU  DAYAL  RAM  FOR  ANSWER  ON  01.08.2016  REGARDING  DISRIBUTION  OF LPG/CNG/PETROL PUMP BY FOREIGN COMPANIES.

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(a)  & (b) -  Government Resolution dated 08.03.2002 of this Ministry has a provision for granting marketing rights of Motor Spirit (MS) / High Speed Diesel (HSD) / Aviation Turbine Fuel (ATF) to the new entrants, including the private sector, subject to the conditions mentioned therein. Various private companies including domestic and foreign oil companies, namely, M/s. Reliance Industries Ltd., M/s. Essar Oil Ltd., M/s. Shell India Ltd. have set up retail outlets of petrol and diesel in the

Only one foreign company, namely Shell, is presently having MS and HSD ROs in the country. State/UT-wise number of ROs set up by Shell as on 01-07-2016 are given at Annexure. (c)  &  (d)  -  Demand  of  petrol/diesel  is  being  met  in  full  at  ROs  set  up  by  Public  Sector  Oil Marketing Companies (OMCs) throughout the country. These products are fully de-controlled for distribution and there is no reported shortage of these products in the country. However, in case of shortages in particular locations due to reasons beyond the control of OMCs including natural calamities like floods, earthquake, landslide etc, OMCs take necessary steps to move products from alternate sources/route to meet the demand. OMCs  appoint  LPG  distributorships  in  the  country  for  assured  distribution  of  LPG  to  the consumers.  OMCs  aim  to  increase  the  National  LPG  coverage  to  75%  with  minimum  60% coverage at state level and at least one distributor in each block by 2019. As present, there are 18033  LPG  distributorships  in  the  country.  As  a  part  of  the  process  of  opening  10,000  new distributorships,  the  process  for  setting  up  of  more  than  2000  new  LPG  distributorships  is  at different stages of selection across the country. The Government established Petroleum & Natural Gas Regulatory Board (PNGRB) which grants authorization to  entities for developing  a  City  Gas  Distribution  (CGD)  network  in  the  specified Geographical  Area  (GA)  of  the  country  through  a  bidding  process.  PNGRB  has  envisaged  a phase roll out plan for development of CGD networks in several GAs in various States/UTs. The GAs are included in bidding round in a phased manner depending on the natural gas pipeline connectivity/natural  gas  availability  and  feasibility  for  grant  of  authorization  to  develop  CDG country.

networks in the country.

****

## ANNEURE

Annexure referred to in reply to part (a) & (b) of Lok Sabha Starred Question  No. 220 asked by Shri Harinarayan Rajbhar and Shri Vishnu Dayal Ram, Hon`ble MPs regarding 'Distribution of LPG/CNG/Petrol Pump by foreign Companies'.

## State/UT-wise number of ROs set up by Shell as on 01-07-2016

|   S.NO. | State / UT               |   NOS. |
|---------|--------------------------|--------|
|       1 | Andhra Pradesh           |      0 |
|       2 | Arunachal Pradesh        |      0 |
|       3 | Assam                    |      5 |
|       4 | Bihar                    |      0 |
|       5 | Chhattisgarh             |      0 |
|       6 | Delhi                    |      0 |
|       7 | Goa                      |      0 |
|       8 | Gujarat                  |     22 |
|       9 | Haryana                  |      0 |
|      10 | Himachal Pradesh         |      0 |
|      11 | Jammu & Kashmir          |      0 |
|      12 | Jharkhand                |      0 |
|      13 | Karnataka                |     29 |
|      14 | Kerala                   |      0 |
|      15 | Madhya Pradesh           |      0 |
|      16 | Maharashtra              |     10 |
|      17 | Manipur                  |      0 |
|      18 | Meghalaya                |      0 |
|      19 | Mizoram                  |      0 |
|      20 | Nagaland                 |      0 |
|      21 | Odisha                   |      0 |
|      22 | Punjab                   |      0 |
|      23 | Rajasthan                |      0 |
|      24 | Sikkim                   |      0 |
|      25 | Tamil Nadu               |     15 |
|      26 | Telangana                |      1 |
|      27 | Tripura                  |      0 |
|      28 | Uttar Pradesh            |      0 |
|      29 | Uttarakhand              |      0 |
|      30 | West Bengal              |      0 |
|      31 | Andaman &Nicobar Islands |      0 |
|      32 | Chandigarh               |      0 |

| 33   | Dadra& Nagar Haveli   |   0 |
|------|-----------------------|-----|
| 34   | Daman& Due            |   0 |
| 35   | Lakshadweep           |   0 |
| 36   | Puducherry            |   0 |
|      | TOTAL                 |  82 |