Award of Dealerships

Award of retail outlets,
2/3 wheeler outlets,
kerosene- LDO dealerships and LPG distributorships

Ministry of Petroleum and Natural Gas has reserved 7.5 % of all type of dealership agencies of the public sector oil companies for disabled persons. The oil industry appoints its dealers/distributors through an advertisement in one English daily and one regional daily having maximum circulation in the district in which the dealership distributorship is to be located.

Eligibility criteria

  • Nationality: Indian
  • Age group: (between 21-30 years)
  • Educational qualification: (Matriculation or equivalent)
  • Physically Handicapped persons should produce a certificate from Civil Surgeon/CMO or Superintendent of a Government hospital that he/she is O.H. to the extend of min. 40% permanent partial of either upper or lower limb or both upper & lower limbs together. Partially HH candidates are also eligible. Totally blind persons are eligible to apply for retail outlet/kerosene/LDO dealership. They are however not eligible for LPG distributorship.
  • Income: The candidate's income should not be more than Rs.50,000/- p.a. Income for this purpose would include the income of the candidate, his/her spouse, dependent children put together. In case of dependent, his/her parent's income would also be taken into consideration.

Application Form

Standard formats can be obtained from divisional/regional area office of the concerned oil companies.

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Details

  • Introduction
  • Reservations For Dealerships/Distributorships
  • Eligibility Criteria
  • Application Forms
  • Selection Procedure

Issued in Public interest by:
Indian Oil Corporation Limited
(Marketing Division and Assam Oil Division)
Hindustan Petroleum Corporation Limited
Bharat Petroleum Corporation Limited
IBP Co. Limited.

Introduction

The oil Industry appoints its dealers/distributors through an advertisement in one "English Daily" and one "Regional Daily" having maximum circulation in the District(s) in which the Dealership/Distributorship is to be located.

Reservations for Dealerships/Distributorships

For awarding these Dealerships/Distributorships presently the following percentage reservations under various categories are being adhered to:
  1. Scheduled Castes/Scheduled Tribes (ST/ST) 25%
  2. Physically Handicapped Category (PH):
    1. Physically Handicapped Government Personnel (Other than Defence Personnel)
    2. Disabled on Duty/Windows of govt. Personnel (Other Than Defence Personnel) who one in the Course of Duty.

  3. Defense Category (DEF);
    1. Defense Personnel who are permanently and severely disabled either in war or on military duty during peace time
    2. Widows and motherless dependents of Defense Personnel whose husbands/guardians are killed while on military duty either in war or peace. In the case of unmarried personnel (or widower without children) dying while on the duty.
    3. Extremely Deserving cases of Ex-servicemen who have limited means of Livelihood. In all cases under the defense category a certificate issued by the DGR/Ministry of Defense has to be submitted for being eligible.

  4. Freedom Fighters (FF) 5%
    1. Open 55%
    2. Within the "OPEN" category, Consumer Co-operative Societies will be given preference over Unemployed Graduates/Unemployed Engineering Graduates.

  5. Unemployed Graduates/Unemployed Engineering Gradates will, however be given preference over other applicants. Reservation of Dealerships in Tribal Areas in North Eastern States
In view of the fact that the majority population in Arunachal Pradesh, Meghalaya, Nagaland and Mizoram belong to the Scheduled Tribes, the percentage reservation of dealerships etc. for Scheduled Tribes in these States is to be in line with the ST population percentage (rounded to the nearest ten) and the same is as under:

ST and OPEN Population Percentage
State Percentage dealership to be awarded to ST Percentage to OPEN category
Arunachal Pradesh 70 30
Meghalaya 80 20
Nagaland 80 20
Mizoram 90 10

Note : Marketing Plans, based on 100-Point formula as are proposed on a rolling basis to ensure reservation percentages in respect of all categories for each State /Union Territory.

In case any de-reservation is necessitated in a particular year, the necessary adjustment would be made in the subsequent Marketing Plan by converting the equivalent number of locations under "OTHERS" category into the concerned social objective category.

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Eligibility Criteria

  1. Nationality: Indian
  2. Age on the date of application:
    1. For SC/ST, PH, DEF and OPEN Categories:
      1. Minimum 21 Years
      2. Maximum 50 Years
    2. Freedom Fighter: No age limit

  3. Educational Qualifications
    1. For SC/ST, PH, DEF and OPEN categories Matriculation or recognized equivalent
    2. For 'FF' NOt applicable

  4. Residence
    1. For SC/ST & PH categories : Residents of adjoining districts as mentioned in the advertisement can also apply. However, other things being equal, preference will be given to candidates belonging to the district in which the proposed dealership /distributorship is to be located.
    2. For FF and OPEN categories: A resident of the concerned district alone can apply.
    3. For other than "PHYSICALLY HANDICAPPED" candidates in "PH" categories and DEF category Resident of any district in the State can apply.

  5. SC/ST Certificates: Proper documentary evidence regarding the cast/tribe pertaining to the particular state should be produced as required in the application form.
  6. Eligibility for Freedom Fighters:
    1. Persons applying for dealership/distributorship under this category should produce a certificate or Tamrapetra or an attested copy of the pension payment order issued by the Accountant General in pursuance of the sanction letter, from the Ministry of Home Affairs, Government of India, of their having been Freedom Fighters.

    Eligibility for PH/Govt. personnel disabled on duty (other than defense personnel/widows of Govt. personnel (Other than Defense personnel) who die in the course of duty.

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    PHYSICALLY HANDICAPPED:

    1. Persons applying for dealership/distributorship under "PH" category should produce a certificate from Civil Surgeon/Chief Medical Officer of Supdt. of a Government Hospital that he/she is orthopedically handicapped to the extent of minimum 40% permanent/partial disability of either upper of lower limbs or 50% permanent /partial disability of both upper and lower limbs together.
    2. Totally blind persons are also eligible to apply under this category for Retail Outlet/Kerosene/LDO dealership. They are, however, not eligible for LPG distributorship
    3. "Partially Hearing Handicapped" candidates are also eligible.

    OTHER THAN PHYSICALLY HANDICAPPED UNDER PH CATEGORY:

    Personnel of Para Military Forces Disabled on Duty/Widows of Personnel of Para Military Forces who in the course of Duty. Govt. (Central /State) personnel who die in the course of duty would cover only personnel of the Permanently of the force (namely BSF/CISE/ITBP and Police Force including Railway Protection Forces and Special Reserve Police/Special Armed Police. It also includes Customs and Central Excise personnel who die on patrol duty only. The candidate should attach a copy of relevant certificate from the Govt. Dept. concerned Signed by an Officer not below the rank of Dy. Secretary.

    Relationship (Applicable for All Categories)

    1. No person or a Consumer co-operative Society shall be awarded a new dealership/distributorship if the applicant or the Consumer Cop-operative Society already holds a dealership / distributorship of LPS / Kerosene / LDO / HSD / MS/ Lubricating Oil of any Oil Company.
    2. No person shall be awarded a new Dealership/Distributorship if any of the following close relatives including stop relatives) of the person already hold a dealership/distributorship of LPG/Kerosene/LDO/HSD/MS/Lubricating Oil or any other petroleum products of any Oil Company. For other than Physically Handicapped candidates in "PH" category.

    FF, DEF, SEC/ST and OPEN For "PH" candidates only
    1. Spouse
    2. Father/Mother
      Step Father/
      Step Mother
    3. Brother/Sister
      Step Brother
      Step Sister
    4. Son/Daughter
      Step Son/Step Daughter
    5. Son-in-law
      Daughter-in-law
    6. Parents-in-law
    1. Spouse
    2. Father/Mother
      Step Father/
      Step Mother
    3. Son/Daughter-in-law
      Step Son

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    Income (for all categories)

    The candidate's income should not be more than Rs. 50,000/- per annum. The income for this purpose would include the income of the candidate, his/her spouse, dependent children put together. In use the candidate happens to be dependent on his/her parents his /her parents' income would also be taken into consideration for computing the total income.
  7. Part membership In the case of partnership, all partners should individually full the above-mentioned eligibility conditions and all of them must appear for the interview together.
  8. Registered Consumer Co-operative Societies
    1. For "Reserved Categories" (Social Objective Categories) Member of the Consumer Co-operative Society should individually belong to the category/fulfill the eligibility criteria for which the dealership/distributorship has been advertised. Only the Consumer Co-operative Society making a net profit for the previous three consecutive financial years, as certified by a Chartered Accountant, will be eligible.
    2. For "OPEN" category, only consumer Co-operative Societies making a net profit for the previous three consecutive financial years, as certified by a Chartered Accountant will be eligible. Such Co-operative Societies must be registered.

  9. Totally paralysed and mentally unsound persons applying under any category will not be eligible.
  10. Public Sector nationalised Bank and Indian scheduled Commercial banks in the private Sector will consider advancing loans at reasonable terms to dealers/distributors selected under the Social Objective Categories.
  11. Scheme for Providing Financing Assistance to SC/ST Category Distributorships.

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RETAIL OUTLETS (PETROL/DIESEL OUTLETS)

The Oil companies will make provision for the following facilities to such allottees:

  1. Land and its development
  2. Culerts/hume pipes
  3. Sales room
  4. Air facility
  5. Driver-way
  6. Storage tank and pump
  7. Compound well/barbed wire fencing

SKO-LDO DEALERSHIPS (KEROSENE & LIGHT DIESEL OIL)

The Oil Companies will make provision for Kerosene outlet with the following facilities to be provided by them:
  1. Land and its development
  2. Office building
  3. Compound wall/barbed wire forcing
  4. Storage tank and pump

LPG DISTRIBUTORSHIPS

The Oil Companies will make provision for the following facilities to such alloottees:
  1. A Completed LPG - Godown
  2. Show-Room
  3. Required delivery system

Working capital for Retail Outlets/SKO-LDO Dealerships & Distributorships. Oil Company will also provide to the selected candidates under SC/ST Category working capital for the operation of the Dealerships/Distributorships. Both the working capital as well as 11% per annum interest thereon will be recovered in 100 equal monthly installments from the 13th month of commissioning of the Dealership/Distributorship.

Application Forms

Standard formats, as applicable to various categories, can be obtained from the Divisional/Regional/Area Office of the concerned oil company as per the advertisements.

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Selection Procedure

  1. Constitution of Selection Boards Selection of Dealers/Distributors of Oil Companies is being made by the duty Constituted Selection Boards.
    The Board consists of:
    1. A retired judge of a High Court - Chairman
    2. A representative of SC/ST/ - Member
    3. A Prominent Public Figure - Members

  2. Screeening of Applications/Interviews Applications of all candidates, on receipt from the Divisional Regional/Area Offices of the concerned oil company, are screened by the Selection Boards for final decision regarding eligibility/ineligibility of the candidates. The Selection Boards, thereafter, issue call letters to all eligible' candidates giving adequate notice (generally 15 days) to appear before them for the interview.
  3. Norms for Evaluation of Candidates
    At the time of interview, the inter-se salutation of the candidates belonging to the specified category would be made by the Selection Boards taking into account the following factors:
    1. Business ability
    2. Salesmanship
    3. Capability to provide the required facilities within the situated period ***
    4. Capacity to arrange finance
    5. General Assessment

    Inadequacy of personal finance would not be a ground for disqualification if the candidate is otherwise found suitable. **The requirement will not apply to SC/ST Category dealership/distributorships
  4. Selection of Dealers/Distributors
    1. The Oil Selection Board shall recommend to the Oil Companies a Panel of two names, in order of merit, immediately after the interviews for a particular dealership/distributorship are over.
    2. On receipt of the Merit Panel from the Selection Board, the concerned oil company will take necessary action for issuing the Letter of intent to the candidate empanelled at serial No. in order of merit.

  5. Commissioning of the Dealership/Distributorship
    A person who has been given the "Letter of Intent" would be required to fulfill the conditions, as contained therein viz. arrangement of finance, suitable land, show-room, etc.(Not applicable for SC/ST Category dealerships/distributorships) within a period of our months, so as to enable him/her to commission the dealership/distributorship within the stipulated time period.

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