The Hindu : Fresh allotments of petrol pump, LPG dealerships to begin

Online edition of India's National Newspaper
Friday, Aug 15, 2003

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Fresh allotments of petrol pump, LPG dealerships to begin

By Our Special Correspondent

NEW DELHI AUG. 14. Fresh allotments of petrol pump and LPG dealerships are to open again with the Petroleum Ministry communicating to the Oil Industry Board the broad principles within which guidelines have to be framed for selection of petrol dealers. The process of allotment had been practically frozen since the dissolution of the Dealer Selection Boards last year following allegations of favouritism and nepotism in the process.

Making this announcement at a meeting of Members of Parliament attached to his Ministry, the Petroleum and Natural Gas Minister, Ram Naik, said the selection of dealers would be made by a committee of three officers from oil companies which would be establishing retail outlets and LPG distribution networks.

He made it clear that reservations would continue as per the previous guidelines for all existing categories and to the same extent. The corpus fund scheme, under which an oil company provides financial assistance to dealers from weaker sections such as the Scheduled Castes and the Scheduled Tribes, would also continue.

As an improvement in the selection process, there would be no ceiling on income of the prospective allottee.

In the earlier system, there was a ceiling of Rs. 2 lakhs a year as family income for dealership eligibility. It would also be ensured that only one dealership or distributorship is allotted to an individual, his or her spouse and unmarried children.

Each oil company would also frame its own guidelines with the approval of its Board of Directors within the broad principles outlined by the Ministry, but priority would have to be given to candidates having the ability to provide for land and infrastructure facilities, capability to provide finance and their overall educational qualifications.

Mr. Naik said the oil companies had been asked to immediately start the process of selection of dealerships already advertised till May 5, 2002 but the process could not be carried through following the dissolution of the Dealer Selection Boards.

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