BPCL Retail Outlet Dealership

Last updated : June 10th, 2021 06:59 pm

BPCL Retail Outlet Dealership

The growing number of vehicles across the country has led to an increase in fuel demands and eventually increases the need for petrol pumps. Petrol pump business is a lucrative business in our nation for those having right property on highways or roads with high traffic. In recent years, the petrol pump has also diversified their operations and now offers many services to increase profitability. According to the reports, every petrol pump sells almost five lakh litres of fuel, petrol and diesel every month. Bharat Petroleum Corporation Limited (BPCL) is a Government of India controlled Maharatna oil and gas company headquartered in Mumbai, Maharashtra. The corporation operates 14,161 Petrol Pumps all over India. In this article, we look at the procedure for opening BPCL Retail Outlet (Petrol Pump) in detail.

Know more about Starting a Petrol Pump Business

Locations for BPCL Retail Outlet

Locations for setting up BPCL retail outlets will be identified by the corporation based on commercial and minimum volume considerations. Accordingly, regular and rural retail outlets will also be set up by the company.

• Regular Retail Outlet (ROs): Locations on Highways (NH/SH) and Urban Semi-Urban areas
• Rural Retail Outlet (ROs): Locations in Rural regions but not on Highways (NH/SH)

BPCL Retail Outlet Sites

Once the applicant applied for BPCL retail outlet dealership, the corporation will decide the type of sites for BPCL Retail Outlets as given below:

Eligibility Criteria for BPCL Dealership

Eligibility Criteria for Individual applicants for Proprietorship or Partnership BPCL retail outlet is given here.

• A resident of India (as per Income tax rules) can own a BPCL Petrol Pump
• Age of the BPCL dealer should not be less than 21 years and not more than 55 years except for Freedom Fighter under the CC2 category.
• For operating a Rural ROs, the applicant should be passed the minimum of 10th standard
• For establishing Regular ROs, the applicant should pass the minimum of HSC level of examination conducted by a Board or University

Eligibility Criteria – Finance

For Regular BPCL retail outlet, the fund requirement for eligibility will be Rs. 25 lakhs and for a rural retail outlet the fund requirement for eligibility will be around Rs. 12 lakhs. The funds can be in the below-mentioned forms:

• Funds in savings accounts, deposits with Bank
• Funds in registered companies or Postal Schemes
• National Savings Schemes
• Company shares
• Mutual Funds

Note: Only 60% of the certified value (for stocks, Mutual funds & Bonds) will be considered for eligibility.

Eligibility Criteria for Non-Individual Applicants (Entity)

Non-individual entity applicant means Government Bodies or Agencies, Societies registered under Societies Registration Act 1860 or societies registered under Co-operative Societies Act, 1912 or Co-operative Societies Act, Charitable Trusts registered with Charity Commissioner, Companies formed under the Companies Act, 1956 and 2013 (except Pvt. Ltd. companies).

• The entity should be registered in India
• The date of Registration or incorporation of the entity should be a least three years
• Land: Concerning land, all conditions covered for individuals would apply excepting clauses are given for property owned by the family unit.
• Finance: All conditions mentioned for individuals will be applied for the entity.

Investment Details – BPCL Retail Outlet

In case of Dealer owned or company leased sites, a non-refundable fixed fee of Rs. 5 lakhs for Rural BPCL retail outlet and Rs. 15 lakhs for Regular retail outlet will be payable.

In case of Corporation owned sites involving bidding for allotment, the minimum bidding amount of Rs. 10 lakhs for Rural BPCL retail outlet and Rs. 30 lakhs for Regular retail outlets will be applicable. The applicant has to deposit Rs. 50,000 for Rural BPCL ROs and Rs. 1.5 lakhs for Regular ROs.

 Application Fee for BPCL Retail Outlet

• Application fee of Rs.100 in respect of Rural ROs have to be paid, and fee for SC/ST applicant is Rs.50 in respect of Rural BPCL Retail outlets.
• For applying for regular ROs application fee, Rs.1000 have to be paid. Fee for SC/ST category is Rs.500.

Note: The application fee needs to be paid in the form of demand draft in favour of the BPCL.

Documents Required

• Residence certificate
• Proof of age should be supported by a copy of 10th Standard Board Certificate, Secondary School Leaving Certificate, Birth Certificate, Passport, and Identity card issued by Election Commission
• For educational qualification from overseas universities, boards, an equivalent certificate issued by the competent authority or State Government or Government of India
• Copy of Passbook, account statement, deposit receipts
• Redemption value – Valuation certificates along with a copy of NSC
• Valuation certificates along with a copy of the Demat statement
• Valuation certificates along with a copy of mutual fund certificates or Demat statements
• Registered societies or companies should have made a net profit for the previous three consecutive financial years duly certified by a Chartered Accountant

Documents Required for Ownership Proof

The applicant should furnish at least any one of the following materials in support of ownership of land offered for the BPCL Dealership:

• Khasra or Khatauni or any equivalent revenue document or certificate from revenue official confirming the status of the purchase of the land
• Registered Lease deed for a minimum period
• Registered Sale deed or Registered Gift Deed
• Any other type of ownership or transfer deed document – Mutation 
• Lease agreement letter issued by Government or Semi Government bodies

BPCL Retail Outlet Dealership Selection Procedure

BPCL Retail Outlet (Petrol Pump) dealership selection will be made by inviting applications through advertisements under appropriate category in two newspapers. Selection will be made through a draw of lots or bidding process depending upon the type of BPCL retail outlet site. Details will also be indicated against each location in the advertisement.

The applicant can get advertisements details from the official website of BPCL.

BPCL Retail Outlet Application Procedure:

The applicant needs to apply in a prescribed format for applying BPCL retail outlet. Application format for BPCL retail outlet dealership is attached here:

Affidavit

The applicants have to submit an affidavit in the standard format confirming along with the application. We have here with attached an affidavit format for an individual is given here:

Affidavit format for entity is enclosed here:

Note:

• Affidavits have to be furnished in original on stamp paper of appropriate value as applicable in the concerned State.
• Stamp papers should be purchased in favour of the deponent.
• Affidavits have to be made after the date of advertisement.

All other certificates required for applying BPCL retail outlet dealership is given here:

Get Letter of Intent

After the verification of details, the corporation will issue a letter of Intent to the selected dealership.

Categories of Applicant

After receiving the application, the applicants will be classified into two groups as mentioned below based on the land offered by them

• Group 1: Applicants are having a suitable piece of land in the advertised location or area either by way of ownership or long-term lease for minimum years (as advertised by BPCL).
• Group 2: Applicants are having a firm offer for a suitable piece of land for purchase or long-term lease for minimum years (as advertised by BPCL).

Basic Facilities – Operation of BPCL Retail Outlet

The below-mentioned facilities are required to be provided at the BPCL retail outlet.

Fire Fighting & Safety Equipment

The dealer will provide with firefighting and safety equipment at BPCL retail outlet as per the statutory requirements. Trained staff will be available to handle and operate the same.

Licence Fee Payable

In case of a corporation owned “A” / “CC” site ROs dealerships, a Licence Fee payable on per kilo letter basis will be recovered from the dealer. At present is Rs. 48 per kilo letter for MS (Petrol) and Rs. 41 per kilo letter for HSD (Diesel).

For Dealer owned “B” / “DC” site BPCL retail outlets, this licence fee will be around Rs. 18 per KL for petrol and Rs. 16 per KL for diesel.

In some instances, the land and superstructure (constructed by the dealer), will be taken on lease from the selected candidate. The BPCL will pay the rentals as mutually agreed and the same amount will be recovered from the dealership an additional licence fee. For this case, the licence fee as applicable will be recovered at the lower rate which at present is Rs. 18 per KL for petrol and Rs. 16 per KL for diesel.

Know more about Petrol Pump License Eligibility

BPCL Retail Outlet Dealer Commission Rate

As mentioned Bharat Petroleum Corporation Limited is the biggest oil marketing company in India, awards Rs 2.60 commission to dealers on every litre of petrol they sell, whereas the companies pay Rs 1.65 as dealer commission on per litre of diesel.

BPCL Retail Outlet Management

• A person selected for the BPCL dealership will have to pay attention towards day to day working by personally managing the affairs of the ROs dealership.
• BPCL dealer will not be permissible for taking up any employment.
• If the selected dealer is already employed, he or she will have to resign from the employment and have to submit a letter of acceptance of the resignation before the issuance of a letter of appointment (LOI) by the BPCL.
• The LOI holder will have to give a notarized affidavit stating that she or he is not employed in the private sector or is not drawing any salary.
• An entity selected for the BPCL dealership will have to manage the day to day working or affairs of the dealership under the supervision of their employees and in line with the provisions of the dealership agreement.