written by | March 15, 2022

How to Establish a Bharat Petroleum Franchise in India?

The petrol pump business has long been considered as one of the most profitable businesses not only in India but around the world. This is partly due to the ever-increasing growth and demands of the transportation and logistics sector. According to industry reports, on average, each petrol pump in India fills almost six lakh litres of fuel, petrol and diesel every month. We are well aware that Bharat Petroleum Corporation Limited (BPCL) is a Government of India controlled subsidiary and is termed as  Navratna oil and gas company with its headquarters in Mumbai. It has two major refineries in Kochi & Mumbai. The corporation operates more than 14000 petrol pumps across India. This article will provide you with details on the procedure for opening a BPCL Petrol Pump dealership in detail.

Did you know? Bharat Petroleum Corp Ltd (BPCL) owns 14,161 retail outlets, with 2,548 of them located in rural areas. 

The Eligibility Criteria to Establish a Bharat Petroleum Corporation Limited Dealership

  1. The Indian government has distinct requirements which need to be fulfilled by anyone who wishes to set up a Bharat petroleum retail outlet. Given below are the details of the same.
  2. The owner(s) of the petrol pump company should be Indian citizens. In the case of an NRI applicant, he/she must have lived in India for more than 182 days.
  3. The applicant's minimum age must be 21 years old, and their maximum age should not exceed 55 years old.
  4. Proof of birth certificate is necessary.
  5. The requirements are waived for applicants who fall into the category of freedom fighters.
  6. In rural locations, a minimum investment of ₹15 lakh or more is necessary to obtain a dealership.
  7. In order to obtain a dealership in urban regions, you must invest at least ₹2 crores.
  8. The business location should be in an area where the land is clear of all disputes.

Also Read: Start A Reliance Petrol Pump Dealership Business

Finance Eligibility Criteria for Establishing Bharat Petroleum Outlet in India

The financial need for eligibility for a regular BPCL retail outlet will be ₹25 lakhs, whereas the money needed for a rural retail outlet, will be around ₹12 lakhs. The funds can be in any of the formats listed below:

  • Deposits with the bank and funds in a savings account
  • Postal Schemes or Registered Companies' Funds
  • National Savings Plans (NSP)
  • Shares in a corporation
  • Mutual Funds (MFs) are a type of investment

It's worth noting that only 60% of the certified value (for stocks, mutual funds, and bonds) will be used to determine a person’s eligibility.

Establishing Bharat Petroleum Outlet in India- BPCL Retail Outlet Investment Details

  • A non-refundable fixed cost of ₹. 5 lakhs for Rural BPCL retail outlets. If the land is owned by the dealer or leased by the business, ₹15 lakhs will be paid for regular retail outlets.
  • When bidding for allotment of Corporation-owned properties, the minimum bidding amount shall be ₹10 lakhs for Rural BPCL retail outlets and ₹30 lakhs for Regular retail outlets. For Rural BPCL ROs, the candidate must pay ₹50,000, and for Regular ROs, ₹1.5 lakhs.
  • In the case of Rural ROs, an application fee of ₹100 is required, whereas the fee for SC/ST applicants is ₹50 in the case of Rural BPCL Retail shops.
  • To apply for a regular RO, you must pay an application fee of ₹1000. SC/ST applicants must pay a fee of ₹500.
  • The application fee must be paid with a demand draft made out to the BPCL.

Documents required to Apply for a Bharat Petroleum Franchise

  • Proof of Residence
  • Proof of Age –Birth certificate, passport, Aadhaar Card, School leaving certificate or voter ID
  • Proof of Qualification – Degree or Marksheet from govt approved boards/ universities
  • Redemption value – Valuation certificates along with a copy of NSC
  • Valuation certificates along with a copy of the Demat statement
  • Registered societies or companies should have made a net profit for the previous three consecutive financial years duly certified by a Chartered Accountant
  • Copy of Passbook, account statement, deposit receipts
  • Valuation certificates and a copy of mutual fund certificates or Demat statements

Registered societies or corporations who would have made a net profit for the previous three financial years, as attested by a Chartered Accountant.

Documents Required as Proof of Ownership

The applicant must provide at least one of the following materials to support the ownership of land given for the BPCL Dealership:

  • Any other comparable revenue document or certificate from a revenue official confirming the status of the land purchase, such as a Khasra or Khatauni.
  • For a minimum of one year, a registered lease document is required.

Investment Requirements

A minimum amount of ₹100 is required for an application form. The Rural Bharat Petroleum Corporation outlet application fee (50 for SC/ST applicants), 1000 for Regular HPCL (50 for SC/ST). After an application is approved, the investments required to obtain Hindustan Petroleum franchise/dealership varies according to the outlets:

  • For Regular Bharat Petroleum Dealership/franchise - ₹25 Lakhs investment is required
  • For Rural Bharat Petroleum Corporation outlets - ₹12 Lakhs investment is required

As per Bharat Petroleum rules & regulations the funds can be in any of the following forms : 

Procedure for Choosing a BPCL Retail Outlet Dealership

The BPCL Retail Outlet (Petrol Pump) dealership will be chosen by accepting applications through advertisements in two newspapers in the appropriate category. Depending on the type of BPCL retail outlet location, selections are made through a lottery or a bidding process. In addition, each location in the advertisement will be described in detail.

Petrol Pumps - Require a Minimum Amount of Land

You can rent land on a long-term lease and provide the owner with a No Objection Certificate (NOC). You'll need a long-term lease to compensate for the large initial investment that you will have to make. The petrol pump, also known as a retail outlet, is divided into two categories once the location has been determined. 

  • Urban and semi-urban areas with land on or near national highways. 
  • Rural areas with no access to national highways. 

The required land area will be specified in the advertisement by the Oil Marketing Company (OMC) of your choice, regardless of the names. A minimum of 800 square metres of land is usually required. Once you've applied to a company and been accepted, you'll need to build some brick-and-mortar structures on the site to start a petrol station. A solid and levelled road for vehicles to enter and exit, a compound wall, and safety measures in the event of a fire hazard are just a few examples.

Also Read: Calculation of VAT Based on Quantity for Petrol and Diesel in Tally

BPCL Retail Outlet Application Procedure

To apply for a BPCL retail outlet, the applicant must fill out an application in the prescribed format.

Application Categories

Following receipt of the application, the applicants will be divided into two groups based on the land they have offered, as listed below.

Group 1: Applicants must own or have a long-term lease on a suitable piece of land for a minimum of years in the advertised location or area (as advertised by BPCL).

Group 2: Applicants have a firm offer for a suitable piece of land to purchase or a three-year long-term lease (as advertised by BPCL).

Retail Outlet Management at BPCL

  • The person chosen for the BPCL dealership will be in charge of running the ROs dealership on a day-to-day basis.
  • A BPCL dealer will be prohibited from working in any capacity. 
  • If the selected dealer is already employed, he or she must resign and submit a letter of acceptance of the resignation before establishing a Bharat petroleum outlet in India BPCL issues a letter of appointment (LOI).
  • The holder of the letter of intent will be required to sign a notarized affidavit stating that she or he is not employed in the private sector and does not receive any compensation.
  • The entity chosen for the BPCL dealership's day-to-day operations will be managed by the dealership. and affairs under the supervision of their employees and in accordance with the terms of the dealership agreement.

 Conclusion

You would have understood from the details of this article how the petrol pump business has long been considered one of the most profitable not only in India but around the world. Your monthly profits could easily reach 4 lakhs. However, the Indian government has defined some conditions that must be complied with before you decide to open a petrol station in India.

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FAQs

Q: How do I start a gas station?

Ans:

To be eligible for a petrol pump dealership in India, you must first complete the following steps:

  • Examine the capital required to open a petrol station.
  • Keep track of how much it costs to open a petrol station in India.
  • Check the criteria for the minimum amount of land needed for a petrol station.
  • Obtain your gasoline pump licence and pay your fees 
  • Having met all of your eligibility requirements for a petrol pump dealership
  • To confirm your dealership, gather all of your certificates and permissions.

Q: Which Petrol company is the best?

Ans:

The top six petrol pump brands in India are as follows

  • Indian Oil Corporation is a public company based in India
  • Shell
  • Reliance Petroleum is a company that produces petroleum
  • Hindustan Petroleum is a company based in India.
  • Bharat Petroleum is a company based in India.
  • Essar Oil is a brand of oil produced by Essar

Q: What are the requirements for a petrol pump dealership in India?

Ans:

Following are the eligibility requirements for a petrol pump dealership in India:

  • The applicant's age should be between 21 and 55 years old.
  • The applicant must be an Indian citizen or, in the case of an NRI, must have spent at least 182 days in India prior to applying.
  • As proof of birth certification, you'll need your 10th-grade mark sheet (for rural areas).
  • You should have a graduate degree to work in the city.
  • For freedom fighters in the CC2 category, the minimum educational requirements are not applicable
  • In rural areas, the minimum investment amount for a dealership is ₹ 15 lakhs.
  • In urban areas, the maximum investment amount for a dealership is ₹2 crore.
  • Excluded zones or blacklisted areas should not be used for business.

Q: How does one apply for a Petrol Pump Dealership in India?

Ans:

Many large dealers of petrol pumps place advertisements on a regular basis, and a direct application should be submitted along with the necessary documents, GSTIN number, and fees. The other option is to apply for the dealership online:

 • The applicant must go online and select the website of the petrol pump owner.

 • He must then click on register now and fill out the application form after logging in with a username and password. There is a fee that must be paid before a registration number can be issued. This number can be used to check the status of the applicant's application.

Q: Is it profitable to run a petrol station in India?

Ans:

Yes, the petrol pump business is a highly profitable sector in India. Your monthly profits could easily reach 4 lakh rupees if you combine the commission per litre with the number of vehicles filled monthly.

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