Non-oil cos can retail fuel, rules for setting up petrol pumps eased

In the biggest reform in fuel retailing sector in almost two decades, the government on Wednesday relaxed norms for setting up petrol pumps, allowing non-oil companies to venture into the business - a move that could help private and foreign firms to enter the world's fastestgrowing market.

At present, to obtain a fuel retailing license in India, a company needs to invest Rs 2,000 crore in either hydrocarbon exploration and production, refining, pipelines or liquefied natural gas (LNG) terminals.

Companies with a net worth of Rs 250 crore will be allowed to sell petrol and diesel subject to condition that they install facilities for marketing of at least one new generation alternate fuel such as CNG, LNG, biofuels or electric vehicle charging within three years of start of operations, Information and Broadcasting Minister Prakash Javadekar said.

The retailers will necessarily have to set up 5% of the total outlets in rural areas within five years, he said while briefing reporters on the decision taken by the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.

"The new policy will bring in more investment and give a fillip to 'Ease of Doing Business'. It will boost direct and indirect employment in the sector. Setting up of more retail outlets (ROs) will result in better competition and better services for consumers," he said.