New Delhi (NVI): The Ministry of Petroleum and Natural Gas has simplified the guidelines for the grant of authorisation for bulk and retail marketing of motor spirit (petrol) and high speed diesel (diesel) aimed at increasing the private sector participation.
“The simplified guidelines aim at increasing private sector participation in the marketing of petrol and diesel. An entity seeking authorisation for either retail or bulk must have a minimum net worth of Rs 250 crore at the time of making the application. The minimum net worth should be Rs 500 crore in case of authorisation for both retail and bulk,” an official statement released by the ministry said.
The policy has opened up the marketing sector of petroleum products by removing the strict conditions applicable earlier.
This simplification was initiated through a resolution on November 8, 2019.
For retail authorisation, the entity is required to set up at least 100 retail outlets.
“This move will liberalise the guidelines to increase private sector participation, including foreign players, in the marketing of petrol and diesel,” the statement read.
It will also encourage dispensing of alternative fuels and augmentation of the retail network in remote areas and ensure higher levels of customer service, it added.