Last updated: December 17th, 2019 3:47 PM

IOCL Petrol Pump Dealership

Petrol pump business is a lucrative business with good returns is a general perception among the significant proportion of total population in our nation. However, petrol pump profitability has been transformed dramatically over the past decades. The growing number of vehicles across the country has led to an increase in fuel demands and ultimately increases the need for petrol pumps. According to the reports, an average petrol pump sells almost five lakh litres of fuel, diesel and petrol every month in India. Indian Oil Corporation Limited (IOCL) is a Government of India controlled Maharatna oil and gas company headquartered in New Delhi. The corporation operates 26,489 petrol pumps all over India. In this article, we look at the guidelines for starting IOCL Retail Outlet (Petrol Pump) in detail. Know more about Starting a Petrol Pump Business

Locations for IOCL Retail Outlet

IOCL identifies locations for setting up Petrol or Diesel retail outlets after carrying out the required feasibility studies and based on commercial considerations.

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

Mode of Selection of IOCL Retail Outlet Dealers

The locations identified as above will be advertised in two newspapers, one in English and one in a regional vernacular newspaper having wide circulation in the area where the location falls in case of Regular ROs and case of Rural RO in one local/vernacular newspaper and one state-level newspaper. Persons meeting the eligibility criteria can apply for IOCL retail outlet, and the selection will be made from among the eligible applicants after the due interview process. The applicant can also get advertisements details from the official website of IOCL. Direct offers of retail outlet land can also be considered for development of IOCL Retail Outlet. In such cases, after the receipt of such direct provides viability of the location will be assessed, and if found viable, the advertisement will be released in two leading newspapers. The final selection of the IOCL dealer will be by evaluation of the land offered. Note: Government Agencies or PSUs can be considered for award of dealership directly without advertisement.

Eligibility Criteria

The eligibility criteria for starting IOCL retail outlet is explained in detail below:

Eligibility Criteria for Individuals

• A resident of India (as per Income tax rules) can own an IOCL Petrol Pump
• Age of the IOCL 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 Kisan Seva Kendra (Rural ROs), the applicant should be passed the minimum of 10th standard. Note: However, the candidate not having minimum educational qualification should be able to read, write and count.
• For establishing Regular ROs, the applicant should pass the minimum of HSC level of examination conducted by a Board or University
• In case of Kisan Seva Kendra, an applicant should be resident of the concerned District.
• Those recognised as Scheduled Castes or Scheduled Tribes (SC/ST) under the Constitution of India can apply for SC/ST Dealership.
• Widows can apply for IOCL dealership as based on the advertisement.
• Outstanding Sports Persons (OSP) such as Arjuna Awardees, Asiad /Commonwealth Games and Recognised World Champions, Winners of Medals at Olympics, National Champions under the Recognised National Championships, National Adventure Awardees is eligible under reserved category.
• Freedom fighters can apply for IOCL dealership under reserved category.
• Paramilitary/Police/Govt. Personnel (PMP) is also eligible for reserved category IOCL retail outlet dealership.

Eligibility Criteria for Partnerships

All partners should have to individually fulfil the eligibility criteria as specified above and each partner should submit separate application forms.

Eligibility Criteria for Entity (Non-Individual Applicants)

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 recorded 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.

Eligibility Criteria as per Finance

For Regular IOCL 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:

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

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

Persons not eligible for IOCL Dealership

The following persons are not eligible for obtaining IOCL dealership:

• Persons convicted or against whom a Court of law has framed charges for any criminal offence involving moral turpitude or economic offence (other than freedom struggle)
• A mentally unsound person or paralysed person
• Signatory to an agreement of an RO, SKO-LDO dealership, LPG distributorship of any oil company terminated on the grounds of deterioration or malpractice.

Financial Assistance for Dealership

Financial assistance will be given to applicant belonging to Scheduled Castes and Scheduled Tribes on the award of dealerships by the IOCL as under 'Corpus Fund' scheme.

• In respect of locations reserved for ST/SC categories applicant, the IOCL Company will make available the ready IOCL Retail outlets with all basic facilities at companies own cost. Hence the applicants belonging to SC/ST categories applying against locations covered under `Corpus Fund Scheme' (CFS) are not expected to offer land,  facilities, infrastructure and finance
• IOCL will also give adequate working capital loan for a full operation cycle of the operation of the IOCL Dealership. Both the working capital and 11% per annum interest will be increased in hundred equals monthly instalments from the thirteen months of commissioning of the IOCL Dealership.
• On the request at the time of application for IOCL dealership, unmarried women more than 40 years without earning parents and widows who have been awarded a dealership for locations reserved for women category will be eligible for the facilities as mentioned above

Licence Fee

All IOCL dealers including those availing the Corpus Fund facilities will have to pay a License fee to the IOCL as applicable from time to time. Know more about Petrol Pump License Eligibility

Investment Details – IOCL Retail Outlet

The capital investment required for setting up of an IOCL  petrol pump outlet varies from location to location depending on the cost of land, size of plot and facilities needed to be developed to meet the requirements of consumers in the trading area of the IOCL  retail outlet. The approximate investments required for the development of infrastructure and facilities at New IOCL retail outlets will be indicated in the advertisement.

Bidding amount

In case of dealer-owned or company leased sites, a non-refundable fixed fee of Rs. 5 lakhs for Rural IOCL (Kisan Seva Kendra)  retail outlet and Rs. 15 lakhs for Regular IOCL  retail outlet will be payable. In case of HP corporation owned sites involving bidding for allotment, the minimum bidding amount of Rs. 10 lakhs for Rural IOCL  retail outlet and Rs. 30 lakhs for regular retail outlets will be payable. The applicant needs to deposit Rs. 50,000 for Rural IOCL ROs and Rs. 1.5 lakhs for Regular IOCL retail outlets.

Application Fee for IOCL Retail Outlet Dealership

• 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 Kisan Seva Kendra
• For applying for regular IOCL ROs application fee, Rs.1000 has 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 IOCL.

Documents Required

The applicant should furnish below-mentioned documents along with application form for IOCL retail outlet dealership.

• 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
• Outstanding Sports Persons should attach a copy of the certificate from the from the Department of Youth Affairs and Sports, Govt. of India.
• Defence Personnel category person need to produced a certificate from Directorate General of Resettlement (DGR), Ministry of Defence, Government of India
• Persons applying for dealerships under Freedom Fighters (FF) category should attach a certificate or Tamrapatra or a Pension Order issued by the Ministry of Home Affairs, Govt of India

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 IOCL 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

IOCL Retail Outlet Dealership Application Procedure

IOCL Retail Outlet Dealership Application Procedure is explained in detail below: The application form for IOCL dealership can be submitted on plain paper in the prescribed format as given below. Note: In case of the partnership, each partner will have to provide a separate application form along with a separate application fee as applicable. Filled application form along with relevant documents complete in all respects should be submitted to the office address described in the advertisement for a location before the due date and time.

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 an 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 IOCL retail outlet dealership format is given here:

Security Deposit

The selected will have to deposit an interest-free refundable security deposit of Rs.10 000 candidate issuing the appointment letter.

Get Appointment Letter

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 IOCL).
• 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 IOCL).

Basic Facilities – Operation of IOCL Retail Outlet

Below mentioned basic facilities will have to be provided by each IOCL dealer:

• Driveway
• Salesroom (as per approved drawing)
• Boundary wall/Fencing (as per approved drawing
• Electrification (inclusive of deposit)
• Fire extinguishers (as per norms)
• Air Facility
• Toilet/Urinal

Support from IOCL

Other site-specific customer service facilities, as may be specified by IOCL from time to time. In the case of KSK (Kisan Seva Kendra) Dealer selected under ‘Corpus Fund Scheme’, rural ROs will be developed by IOCL, which will include the facilities mentioned above. In addition to the above facilities, IOCL will also provide Land development, Storage tank and Pump, Low-cost main signage, KSK Signage, Hand tube well.

Dealer Commission Rate

India Oil Corporation Limited (IOCL) awards Rs 2.58 commission to dealers on every litre of petrol they sell, whereas the corporation pays Rs 1.65 as dealer commission on per litre of diesel.

IOCL Retail Outlet Management

• A person selected for the IOCL dealership will have to pay attention towards day to day working by personally managing the affairs of the ROs dealership.
• IOCL 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 (LOA) by the IOCL.
• The LOA holder will have to give a notarised affidavit stating that she or he is not employed in the private sector or is not drawing any salary.
• An entity selected for the IOCL 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.