Workshop on “Setting-up of Retail Outlets (ROs) for Auto-Fuels Dispensation


Workshop on “Setting-up of Retail Outlets (ROs) for Auto-Fuels Dispensation

Issues which result in procedural delays in setting-up of ROs have been under discussion with MoP&NG. In this regard, in July 2018, Joint Secretary (Mktg.), MoP&NG handed over an industry report to DIPP for their consideration. On the advice of JS(M), MoP&NG, a workshop with ministries and department of the central government, involved in the system for granting approvals/consents etc. was organized by the Federation of Indian Petroleum Industry (FIPI).

The workshop was organized on August 9, 2018 at Hotel Le Meridien where senior officials from Ministry of Petroleum & Natural Gas (MoP&NG), Ministry of Road Transport & Highways (MoRT&H), Department of Policy Planning & Promotion (DIPP), National Highway Authority of India (NHAI), Director General of Factory Advisory and Labour Institute (FASLI) and Petroleum & Explosive Safety Organisation (PESO) joined.

Representatives from all Oil Marketing Companies (OMCs) private and public participated in the workshop. Dr. R.K. Malhotra, Director General, Mr. N.K. Bansal, Director (Oil Refining & Marketing) and Shri Ravi Mathur, Advisor represented FIPI.

After the formal introduction, JS (M), MoP&NG informed that the prime objective of this workshop is to understand the issues that cause delay in the approvals required to set-up an RO and way forward to ease-out the system for accelerating the pace.

Mr. N.K. Bansal, on behalf of industry, gave a brief presentation giving ministry/department-wise issues with recommendations from the Industry. He gave the current status of the oil retailing and mentioned that due to estimated increase in the gasoline and diesel demand over three times plus by 2040, about 120,000 additional ROs will have to be set up in next 20 years’ time making annual average of new 6000 ROs against the current pace of over 3000 ROs per year. The actual number per year will be more than 6000 towards the end of this period. This calls for large investment by OMCs, both PSUs and private as well as by the dealers also.

Under the current system, average time to set-up a RO may need 19 approvals (depending on type and location) and time up to 18 months (if land acquisition is involved). In some states, it may be up to three years’ time to complete an RO.

Ease-out of procedures to grant approvals/consents/NOC is, therefore, essential to attract the investments and fast track progress in this segment.

Officials form ministries and various Government departments appreciated vies and suggestions of industry and agreed to review the current system and find out suitable ways to ease-out.

During the exchange of views with industry, Government officials also advised the industry to change the industry practices on some of the issues which will ease out the system without even the changing the current rules.

The workshop ended with a Vote of Thanks from FIPI.

Click here to view the presentation.