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Criteria for LPG Distributorships

This topic provides the information on Criteria for LPG Distributorships.

The Government has modified the selection guidelines for LPG distributorship and a Unified set of Guidelines have been framed for all types of LPG distributorship of Public Sector Oil Marketing Companies (OMCs).

Type of Distributorship Area

  1. Sheheri Vitrak: In the guidelines, the word ‘Urban Area’ will have the definition of ‘Urban’ as per Census 2011. LPG distributorship located in ‘Urban Area (U)’will service the LPG customers located within the Municipal Limits of the Metro city/City/Town and will be called Sheheri Vitrak.
  2. Rurban Vitrak: In the guidelines, the word Rural Urban means LPG Distributor located in ‘Urban Area’ and also providing service to the LPG Customers in specified ‘Rural Area”, generally covering all villages falling within 15 km from the municipal limits of the LPG distributorship location and or the area specified by the respective OMCs. LPG Distributors servicing this area will be called Rurban Vitrak.
  3. Gramin Vitrak: In the guidelines, the word ‘Rural Area’ will have the definition of ‘Rural’ as per Census 2011. LPG distributorship located in ‘Rural Area’ will be called as Gramin Vitrak and will service the LPG customers of the specified rural area. Generally it will cover all villages falling within 15 km from the boundary limits of the LPG Distributorship location and or the area specified by the respective OMCs.
  4. Durgam Kshetriya Vitrak (DKV): LPG distributors in Difficult and Special Areas (like Hilly regions, Forests area, Tribal inhabited area, sparsely populated, disturbed area, islands, Left Wing Extremism (LWE) affected areas) will be set up where setting up of Gramin and Rurban Vitrak are not feasible. Such LPG Distributors will be called as Durgam Kshetriya Vitrak (DKV). They will service the LPG customers situated in such DKV areas as specified by the respective OMCs.

Eligibility criteria to apply for LPG distributorship

  • Be an Indian citizen and be a resident of India.
  • Have passed minimum Xth standard examination or equivalent from a recognised Board. The criterion of educational qualification is not applicable for applicant belonging to Freedom Fighter (FF) category.
  • Be not less than 21 years and not more than 60 years in age as on the date of advertisement.
  • There is no age restriction for applicants applying for locations reserved under FF category.
  • Not be a family member of employee of OMC as on date of application.
  • Fulfil Multiple Dealership/Distributorship norms.
  • Not be a signatory to distributorship/dealerships agreement, terminated on account of proven cases of malpractices/adulteration.
  • Own a plot of land of minimum dimensions for construction of LPG godown or Own a ready LPG cylinder storage godown as on the last date for submission of application.

Basic facilities required for operation of LPG distributorship

  1. Godown for Storage of LPG in Cylinders
    • LPG Distributor would require a Storage Godown duly approved and licensed by Chief Controller of Explosives of Petroleum and Explosives Safety Organisation (PESO) for storage of
      • 8000 kg LPG in cylinders (Sheheri and Rurban Vitrak),
      • 5000 kg LPG in cylinders (Gramin Vitrak)
      • 3000 kg LPG in cylinders (Durgam Kshetriya Vitrak (DKV).
    • The applicant should own a plot of land of minimum dimensions
      • 25 Metre x 30 Metre (within 15 km from municipal/town/village limits of the location offered in the same State) (Sheheri and Rurban Vitrak)
      • 21 Metre x 26 Metre (within 15 km from advertised location) (Gramin Vitrak)
      • 15 Metre x 16 Metre (within the village / cluster of village limits as per the advertised location) (Gramin Vitrak)
    • The land for construction of godown should be plain, in one contiguous plot, free from live overhead power transmission or telephone lines. Canals / Drainage / Nallahs should not be passing through the plot.
    • The selected candidate has to ensure that an all weather motorable approach road (public or private road connecting to the public road) of minimum 2.5 metre width is made available to provide access of LPG Cylinder Truck to the offered land for godown / LPG Godown. In case of private road connecting to the Public Road, the same should be either owned/registered lease or having a right of way from the owner(s) of the land.
  2. Showroom :
    • A Showroom with minimum outer dimensions of 3 metre by 4.5 metre as per the standard layout is to be made in a shop / land located in the advertised location i.e. within the municipal/town/village limits of the place which is mentioned under the column of ‘location’ in the advertisement. In case locality is also specified under the column of ‘location’ in the advertisement for LPG distributorship, a showroom of minimum outer dimensions 3 metre by 4.5 metre as per the standard layout has to be made in a shop/land located in the said ‘locality’. The showroom should be easily accessible to general public through a suitable approach road.
  3. Infrastructure For Home Delivery Of LPG Cylinders - In addition to the Godown for storage of LPG cylinders and Showroom, Delivery Vehicles will be required for effecting home delivery of LPG cylinders in the authorized area of operation.

Application process

  • Individual who fulfills the eligibility criteria for Sheheri Vitrak are to submit online application form.
  • Individual who fulfills the eligibility criteria for all other categories of distributorship, can submit application format that can be downloaded free of cost from websites of OMCs.
  • A candidate can apply for more than one location. However, in such cases, he/she will have to submit separate application for each location. Each application should be accompanied with the requisite application fee.
  • Applicants should submit only one application for one location. In case more than one application is received from an individual, all the applications would be clubbed together and treated as one application. In such cases, application fees received against all other applications would be forfeited.

Mode of selection

Selection is done by inviting applications through advertisements published in three daily newspapers - One having highest circulation in the State and two having highest circulation in the district where the location is situated. Selection of LPG distributor for an advertised location is done by draw from all the eligible applicants for that location.

Tenure of distributorship

The tenure of the distributorship shall be for a n initial period of 10 years and renewable for every 5 years thereafter, subject to the examination of the performance of the distributorship by the respective OMC and decision thereon.

For the complete guidelines, click here.

Source : Ministry of Petroleum and Natural Gas

Shrikant Malpani Aug 18, 2019 01:54 PM

I want HP gas dealership because my village has no direct agency. Other Taluka distributor gives us cylinder with extra charges. We have 4000 families in my village. I want to save extra charges charged by unauthorized dealer

Davinder Jul 20, 2019 07:43 AM

First Q: Can I open new gas agency if similar company have a gas distributor in same area? 2Q: I want to become distributor of LPG pl suggest me if in my area already have Indian gas egency and customers can fill there gas at any agency or not ?

Ravi Apr 07, 2019 10:44 PM

How can I find, no Dealership is available at location point.

Dinesh Mar 10, 2019 10:46 AM

Already indane dealer located from the place of 10kms , so will I get other company dealership if I get also customers will be redirected to my agency ? Any clash.
Between this two agency will occur any kind of law problem will be there.

Aamani Mar 01, 2019 09:58 PM

I got connection from hp gas agency from sholinghur, vellore dist, Tamilnadu. I paid 1500 for gas connection. I need to know that its payable connection or free. Please let me know

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