The Government has relaxed norms for setting up petrol pumps allowing non-oil companies to venture into the business. The move could help private and foreign firms to enter the fuel retailing sector. The Cabinet Committee on Economic Affairs yesterday approved the Review of Guidelines for Granting Authorization to market Transportation Fuels.
Briefing reporters in New Delhi, Information and Broadcasting Minister Prakash Javadekar said, companies with a net worth of 250 crore rupees will be allowed to sell petrol and diesel. The companies will be subject to the condition that they install facilities for marketing at least one new generation alternate fuel such as CNG, LNG, biofuels or electric vehicle charging within three years of start of operations.
He said the retailers will necessarily have to set up five per cent of the total outlets in rural areas within five years. The Minister said the new policy will bring in more investment and give a fillip to ‘Ease of Doing Business. It will also boost direct and indirect employment in the sector.