The government of India has revised the guidelines for marketing of petrol and diesel with an aim to encourage private and foreign investments.
As per the new guidelines, the initial minimum investment requirement has been reduced from Rs. 2,000 crore to Rs. 250 crore. Prior investments in oil and gas exploration and production, refining, pipelines and terminals will not be required. Non-oil companies will also be allowed to invest in the retail sector.
Those applying for authorization to market petrol and diesel would be allowed to apply for retail and bulk authorisation separately or both. It would be possible for individuals to obtain dealerships of multiple oil marketing companies at different sites.
It will be mandatory for entities to have atleast one new generation alternate fuel at the outlet within 3 years. It could include CNG, LNG, biofuels or electric charging. The rules also require companies to setup minimum 5% of the retail outlets in notified remote areas within 5 years.