In India, the option of opening a petrol pump is possible and it includes a certain process. The first step for the business is to get a license. The country’s internal demand for petrol is rising, which makes the petrol pump industry lucrative and potentially a secured business for the average person. However, getting a Petrol Pump License is a necessary step for a business to run smoothly.

Before commencing this process, your businesses need to comply with the must-have legal aspects established by the government. The petrol pump license is applied with the State Level Coordinator of Oil Industry and Petroleum Planning as it is the licensing body that regulates the distribution of the licenses. There are several phases that comprise the application process, like the qualifications of the business owner, site inspections, and the safety regulations and compliance. 

For anyone looking to become an entrepreneur in the petrol pump business, one must first understand thoroughly the steps and process of getting a petrol pump license and operate it independently. In this article we will get to know the Indian petrol pump franchise licensing requirements, how does one become eligible, what are the resources required, and how is it done.

Petrol Pump License: Basic Requirement for Eligibility

• An individual needs to be an Indian national.
• To get the license for petrol pump business, the person requesting for the license has to be an Indian citizen.
• He should have stayed or resided in India for over 182 days in the last financial year. 
• Moreover, the age criteria for the petrol pump license applicant are from 21 years to 55 years. In this case, the applicant will submit her birth certificate, passport, 10th board certificate, secondary school leaving certificate, age affidavit, or identification card as a proof of the age.

Petrol Pump License: Basic Educational Requirement for Eligibility

• Every candidate submitting an application for a license of a petrol pump needs to have a basic education. Candidates for rural petrol pumps who is identified as SC/ST or OBC must have completed at least the 10th grade, while candidates from other backgrounds must have completed at least the 10+2 level of eductaion. 
• Applicants in open categories for rural petrol pumps must have passed at least the 10+2 level exam. Applicants in the open category who do not live in a rural area needs to have a degree from a Deemed University, any educational institution established by an Act of Parliament, or any university founded by an Act of the Central or State Legislature of India.
• Therefore, it requires a graduation in any domain, or a diploma in engineering, or a chartered accountant, company secretary, or cost accountant, for open category applicants outside of rural areas to apply for the petrol pump license.

Petrol Pump License: Required Money for the Investment

• As per the licensing regulations for establishing a petrol pump in India, the applicant needs to show that they can mobilize funds of at least 25 lakhs for normal petrol pump station and 12 lakhs for a petrol pump station to be set up in a rural locality. 
• Most of the investors try to satisfy the investment need by using dematerialized shares of stock, national savings certificates, bank deposits, establishing new companies, post office schemes, mutual fund share investment and many more.
• It is to be noted that jewelry and IOUs with unclear proof will not be taken into consideration. Moreover, only sixty percent of the total value of the notes, shares, and group investment plans will be considered in the approval. Additionally, a chartered accountant needs to supply the necessary investment assessment certificate for the application for a petrol pump license. 

Required Land for Petrol Pump Dealership

Securing land is necessary to establish and operate of a gas station or petrol pump. Because the process involves a number of factors, prospective business owners should be informed of its complexities. Purchasing land is the important step when thinking about a dealership for petrol pumps. The following are the major factors of purchasing a land:

• Close to the Highway: For the purpose to get the land readily accessible to people, it should ideally be chosen next to the highway.
• Ownership or Rental Contract: Candidates must either be the landowner or have a current leasing agreement for a suitable property close to the proposed site.
• Official Proposal for Purchase Offer: Land acquisition candidates will be considered in the first place if they have a formal purchase offer for a suitable piece of land or if there exist a long-term lease agreement at place.
• Submission of Papers: All applicants must submit several documents to show that they are the legal owners of the listed property or they intend to have the property in question. The land’s size should adhere to the given specifications.
• Land Improvement: Applicants must raise the land to street level using the proper earthwork techniques if they are chosen for the petrol pump franchise. Taking into account the soil conditions, this entails building a concrete framework and a composite wall with a minimum height of 1.5 meters.

Comprehending and meeting these requirements are crucial phases in the land purchase process for starting a petrol pump dealership.

Who is a Prospective Applicant to get the Petrol Pump License?

• In order to be considered, prospective license applicants for petrol pump must meet the conditions. Candidates who meet these requirements move on to the next round, when a drawing, tendering procedure, or lottery may be used for the final decision. 
• Remember that building trust needs transparency through the application process, and candidates are encouraged to closely monitor each step of the procedure.

Conclusion

The location of a petrol pump has a direct influence on a company’s success or failure. Petrol pumps should be located to residential areas, popular marketplaces, most of the state or national highways, and busy roadways. Following license acquisition, the applicant must understand the cost of the petrol pump license and build the petrol pump and oil bunkers in accordance with the rules and regulations provided by the authorities.

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