Bharatgas

Franchise : Bharatgas Gas Agency

Become Dealer. Franchise Guide. Company Details, Investment, ROI, Shop - Land requirements.

This Article covers How to get Dealership of Bharatgas, How to sell Bharatgas Gas Agency in India.
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Requirement
Investment Amount Rs. 2.5 lakhs to Rs. 5 lakhs
Land Area Minimum 15 Metre x 16 Metre store or plot in outer dimension with the godown capacity of minimum 3000 Kg LPG storage.
Return on Investment -
Franchise https://www.ebharatgas.com/pages/Dist_Appointment/Distributor_Appointment.html


Important Notes

NEW LPG DISTRIBUTOR APPOINTMENT

M/s Bharat Petroleum Corporation will be advertising in prominent dailies for selection of distributors for their proposed LPG distributorships at various locations in various states. The selection guidelines are provided for the convenience of those interested to apply. 

Application for such distributorships has to be submitted by eligible applicants on plain paper in the standard format. For public convenience they are posting the application format on the website. 

However, please note, it is to be clearly understood that this blank application is only a specimen and will be valid only if filled in accordance with the eligibility criteria as applicable for the respective location and accompanied by the specified application fee against specific advertisement released for any location.

IDENTIFICATION OF LOCATIONS

Locations for setting up of LPG Distributorship are identified based on available refill sale potential, which can sustain economically viable operation of an LPG distributorship. The setting up of LPG distributorships at the identified locations is a business proposition that has risk and does not guarantee any assured returns or profits.

Feasibility study for setting up of new LPG distributorships will be based on refill sale potential. Refill sale potential for setting up of LPG distributorship is based on the number of households, per capita consumption, LPG coverage and the existing/ proposed PNG connections if any.

RESERVATION

The percentage reservation for various categories in all the States except Arunachal Pradesh, Meghalaya, Nagaland and Mizoram will be as under: -

1) Open Category (O)                                                    : 50.5%

2) Schedule Castes / Scheduled Tribes (SC/ST)                : 22.5%

3) Other Backward Classes (OBC)                                   : 27.0%

MODE OF SELECTION

Selection for LPG Distributorship will be done by inviting applications through Advertisement / Notification under appropriate category in newspapers. The details of the locations advertised will also be available at the websites of the Oil Companies i.e. www.iocl.in, www.ebharatgas.com, www.hindustanpetroleum.com, www.bharatpetroleum.in, and also at the portal www.lpgvitarakchayan.in.

All applicants for the locations falling under ‘Sheheri Vitrak’ or ‘Rurban Vitrak’ or ‘Gramin Vitrak’ shall submit their applications by registering on the web based portal www.lpgvitarakchayan.in and submitting their application form online, along with requisite application fee (submitted through online transfer of money). The selection for these types of LPG Distributorships will be done by conducting computerized draw of lots from amongst all the eligible applicants for the location. 

ELIGIBILITY CRITERIA FOR APPLICANTS

All applicants fulfilling the eligibility criteria will become eligible for the draw for selection of the LPG distributorship. The eligibility Criteria is as under: -

Common Eligibility Criteria for Sheheri Vitrak, Rurban Vitrak, Gramin Vitrak and Durgam Kshetriya Vitrak type of LPG Distributorships:

(A) The applicant should,

  1. Be an Indian citizen and be a resident of India.
  2. Have passed minimum Xth standard examination or equivalent from a recognized Board. The criterion of educational qualification is not applicable for applicant belonging to Freedom Fighter (FF) category.
  3. Be not less than 21 years and not more than 60 years in age as on the date of publication of the advertisement. There is no age restriction for applicants applying for locations reserved under Freedom Fighter (FF) category.
  4. Not be a ‘family member of an employee of Oil Marketing Companies’ as on date of application.
  5. The applicant or any other member of ‘family unit’ should not hold a Dealership/LPG Distributorship or Letter of Intent (LOI) for a Dealership/LPG distributorship of any PSU Oil Marketing Company.
  6. Be physically and mentally sound to be able to run the business. That is, the applicant should not be totally paralyzed or mentally unsound or who suffers from insanity and is deprived of cognitive faculties.
  7. Should not be totally blind.
  8. Neither have been convicted nor charges been framed by any Court of Law for any criminal offence involving moral turpitude/ economic offences.
  9. Not be a signatory to distributorship/dealerships agreement, terminated on account of proven cases of malpractice/adulteration of any Oil Marketing Company or not having resigned from Sole proprietorship of any dealership/ distributorship of any PSU Oil Marketing Company in order to transfer the dealership/distributorship in favour of any of his/her family member(s).
  10. ‘Own’ a plot of land of minimum dimensions specified below for construction of LPG godown Or ‘Own’ a ready LPG cylinder storage godown as on the last date for submission of application as specified either in the advertisement or corrigendum (if any).
  11. Capacity of Godown :
  12. Sheheri Vitrak and Rurban Vitrak will require a storage Godown of minimum capacity of 8000 Kg LPG.
  13. Gramin Vitrak will require a storage godown of minimum capacity of 5000 Kg LPG.
  14. Durgam Kshetriya Vitrak will require a storage godown of minimum capacity of 3000 Kg LPG.
  15. Dimension of Land:
  16. For Sheheri Vitrak and Rurban Vitrak, the candidate should ‘Own’ a plot of land of minimum dimensions 25 Metre x 30 Metre in the city or within 15 km from the outer limits of municipal/town/village limits of the location offered in the same State.
  17. Selected candidate for Sheheri Vitrak & Rurban Vitrak locations falling under ‘X’ and Ý’ category Metro Cities/Cities/State will be allowed to construct the godown in and within 15 km outside the Municipal limit of the town/City of the advertised location. Any financial implication incurred by the LPG Distributor for moving LPG cylinders in and out of the City/town will be borne by the Distributor who sets up his godown outside the Municipal Limit, if any of the movement is on Inter-state basis.
  18. For Gramin Vitrak the candidate should ‘Own’ a plot of land of minimum dimensions 21 Metre x 26 Metre within 15 km from the advertised location.
  19. For Durgam Kshetriya Vitrak the candidate should ‘Own’ a plot of land of minimum dimensions 15 Metre x 16 Metre within the village/cluster of village limits as per the advertised location.

(B) In case of any dispute/ambiguity regarding location of land vis-a-vis advertised specifications, the matter will be referred to District Revenue authorities whose decision will be final.

(C) The land for construction of godown should be plain, in one contiguous plot, free from live overhead power transmission or telephone lines. Canals / Drainage / Nallahs should not be passing through the plot.

(D) It will be the responsibility of the selected candidate to observe and perform the provisions of all rules and regulations, Government or municipal or local or Acts, Laws, Regulations, Bye-Laws as may be enforced from time to time with respect to land for construction of LPG Godown. In case there is any reference relating to violation of any of the statutory provisions, it will be referred to the concerned authority for examination and for appropriate action.

(E) The selected candidate has to ensure that an all-weather motorable approach road (public road or private road connecting to the public road) of minimum 2.5 metre width is made available to provide access of LPG Cylinder Truck to the offered land for godown/LPG Godown.

(F) An undertaking has to be provided by the selected candidate at the time of acceptance of Letter Of Intent (LOI) that the Approach Road as specified will be provided within the timeframe as mentioned in LOI.

Specific Eligibility Criteria for Showroom

(A) Showroom for Sheheri Vitrak, Rurban Vitrak and Gramin Vitraks: The applicant should ‘own’ a suitable shop of minimum size 3 metre by 4.5 metre in outer dimension or a plot of land for construction of showroom of minimum size 3 metre by 4.5 metre as on the last date for submission of application as specified either in the advertisement or corrigendum (if any) at the advertised location i.e. within the municipal/town/village limits of the place which is mentioned under the column of ‘location’ in the advertisement.

(B) In case locality is also specified under the column of ‘location’ in the advertisement, the candidate should own a suitable shop of minimum size 3 metre by 4.5 metre in outer dimension or a plot of land for construction of showroom of minimum size 3 metre by 4.5 metre as on the last date for submission of application as specified either in the advertisement or corrigendum (if any) as per the standard layout in the said ‘locality’. It should be easily accessible to general public through a suitable approach road.

(C) In case an applicant has more than one shop of minimum size 3 metre by 4.5 metre in outer dimension or a plot of land for construction of showroom of minimum size 3 metre by 4.5 metre as on the last date for submission of application as specified either in the advertisement or corrigendum (if any) at the advertised location or locality as specified under the column of ‘location’ in the advertisement, the details of the same can also be provided in the application.

(D) The applicant should have ownership as defined under the term ‘Own’ above in the name of applicant / member of “Family Unit” (as defined in multiple dealership / distributorship norm of eligibility criteria)/ parents (includes Step Father/Step Mother), grandparents (both maternal and paternal), Brother/Sister (including Step Brother & Step Sister),Son/Daughter (including Step Son/Step Daughter), Son-in- law/Daughter in-law of the applicant or the spouse (in case of married applicant) as on last date for submission of application as specified either in the advertisement or Corrigendum (if any). In case of ownership/co-ownership by family member(s) as given above, consent in the form of a declaration from the family member(s) will be required.

(E) Applicants having registered lease deed commencing on any date prior to the date of advertisement will also be considered provided the lease is valid for a minimum period of 15 years from the date of advertisement.

(F) The same piece of land for godown or same piece of land for showroom cannot be offered by more than one applicant for a particular location against the advertisement. In case it is found at any stage that the same piece of land for godown or same piece of land for showroom has been offered by more than one applicant for the same location of the advertisement, then all such applications would be rejected or if selection has been done, then the same would be cancelled.

(G) In case if the offered land for godown and/or offered land for showroom by the selected candidate which is shown in the application is found not meeting the eligibility conditions / requirements as stipulated in the advertisement/brochure/application, then the selected candidate can offer an alternate land which is owned by the applicant/member of the ‘Family Unit’/ parents (includes Step Father/Step Mother), grandparents (both maternal and paternal), Brother/Sister (including Step Brother & Step Sister),Son/Daughter (including Step Son/Step Daughter), Son-in-law/Daughter in-law of the applicant or the spouse (in the case of married applicant) as on the last date for submission of application as specified either in the advertisement or corrigendum if any.

(H) Selected candidate who have been issued LOI after meeting all specifications for the land as laid down in the advertisement, then the LOI holder can offer an alternate/new land for construction of godown / Showroom, in the advertised location.

APPLICATION

The Individual, who fulfills the eligibility criteria for Sheheri Vitrak should submit online application for LPG Distributorship. The Individual, who fulfills the eligibility criteria for Rurban, Gramin Vitrak and Durgam Kshetriya Vitrak, should submit application for LPG Distributorship in the prescribed format.

The application form will be available on the websites of the OMCs viz., www.iocl.com, www.ebharatgas.com, www.bharatpetroleum.in and www.hindustanpetroleum.com and can be downloaded.

NON REFUNDABLE APPLICATION FEE

For Sheheri Vitrak and Rurban Vitrak, applicants should submit non-refundable application fee of Rs. 10,000/- (Rupees Ten thousand only) for Open category, Rs. 5,000/- (Rupees five thousand only) for OBC Category and Rs. 3,000/- (Rupees Three Thousand) for SC/ST Category through online payment.

For the Gramin Vitrak and Durgam Kshetriya Vitrak, applicants should submit the application along with a non-refundable application fee of Rs. 8,000/- (Rupees Eight Thousand only) for Open category, Rs. 4,000/- (Rupees Four Thousand only) for OBC Category and Rs. 2,500/- (Rupees Two Thousand and five Hundred) for SC/ST Category in the form of a Demand draft from any bank.

ONE APPLICATION PER APPLICANT FOR A LOCATION

Applicants should submit only one application for one location. In case more than one application is received from an individual, all the applications would be clubbed together and treated as one application. In such cases, application fees received against all other applications would be forfeited.

CANDIDATE APPLYING FOR MULTIPLE LOCATIONS

A candidate can apply for more than one location. However, in such cases, he/she will have to submit separate application for each location. Each application should be accompanied with the requisite application fee. 

DRAW OF LOTS

1) Selection of LPG distributor will be done by draw of lots out of all eligible applicants.

2) In case for a location there is only one eligible applicant, no draw is required.

3) Draw of Lots for Rurban, Gramin and Durgam Kshetriya Vitrak locations, will be held manually, whereas for Sheheri Vitrak locations the draw of lots will be conducted through random number generation on the web portal.

4) Draw of Lots for Durgam Kshetriya Vitrak will be conducted first out of all eligible applicants who are residents of the Gram Panchayat of the advertised location.

5) Successful candidate in the Draw of Lots, will have to submit a Demand Draft of value equivalent to 10% of the security deposit, as applicable (Refer table given below) to different type and category of LPG Distributorships, within 7 working days, from the date of receipt of letter issued by the concerned office of the OMC in this regard.

Demand Draft amount to be submitted:

Type of Distributorship

 

Open

 

OBC

 

SC / ST

 

Sheheri Vitrak/ Rurban Vitrak

 

50,000

 

40,000

 

30,000

 

Gramin Vitrak / Durgam Kshetriya Vitrak

 

40,000

 

30,000

 

20,000

 

6) In case the location is advertised for Sheheri Vitrak the selected candidate will have the option to pay the amount through online platform.

7) The candidature of the selected candidate will be cancelled in case he/she fails to deposit the above amount within 7 working days from the date of Draw of Lots. 

BASIC FACILITIES REQUIRED FOR OPERATION OF LPG DISTRIBUTORSHIP

The selected candidate will construct or provide a readily constructed LPG godown to store LPG of stipulated capacity and obtain necessary approvals from statutory bodies including Petroleum & Safety Organization (PESO) within the time period mentioned in the LOI.

If the land offered by the candidate in the application or alternate land offered by the candidate at the time of Field Verification (FVC) meets all specifications as laid down in the advertisement on the basis of which LOI has been issued, then the LOI holder can offer an alternate / new land for construction of godown of specified dimensions, in the advertised location, which will be considered on the grounds of enhanced security / safety, better title (owned instead of leased), convenient location, lower operating cost etc.

The selected candidate has to ensure that an all-weather motorable approach road (public or private road connecting to the public road) of minimum 2.5 metre width is made available to provide access of LPG Cylinder Truck to the offered land for LPG Godown. In case of private road connecting to the Public Road, the same should be either owned/registered lease or having a right of way from the owner(s) of the land. Wherever the State Government stipulates an approach road of wider dimensions the same should be made available by the applicant.

An undertaking has to be provided by the selected candidate at the time of acceptance of LOI that the Approach Road as specified will be provided within the timeframe mentioned in the LOI. The Approach Road will be verified for its suitability before the issuance of Letter of Appointment. It would be responsibility of the selected candidate to ensure that the LPG cylinder truck is allowed unhindered access at all times through this approach road to the LPG Godown upon commissioning of the LPG distributorship. In the event of failure of selected candidate to make available the approach road, the LOI is liable to be cancelled along with forfeiture of the 10% security deposit. OMCs will not be held responsible for any investment made by candidate in the construction of the godown without having a proper approach road.

For Sheheri Vitrak, Rurban Vitrak and Gramin Vitrak the selected candidate will construct or provide a readily constructed LPG Showroom as per the Standard layout and color scheme within the time period mentioned in the LOI. The showroom should be easily accessible to general public through a suitable approach road. Although land for Showroom / Showroom is not an eligibility criteria for Durgam Kshetriya Vitrak, a showroom of dimensions 2.6 M x 3.0 M is to be constructed near the Godown or in an existing nearby shop falling within maximum distance of 500 M from the Godown site in the same village.

If the land offered by the candidate in the application or alternate land offered by the candidate at the time of Field Verification (FVC) meets all specifications as laid down in the advertisement on the basis of which LOI has been issued, then the LOI holder can offer an alternate / new land for construction of showroom of specified dimensions, in the advertised location, which will be considered on the grounds of enhanced security / safety, better title (owned instead of leased), convenient location, lower operating cost etc.

Construction of LPG godown and /or showroom should be commenced only after permission in writing is obtained from Area Manager/territory manager/ regional Manager of the concerned Oil Marketing Company (OMC).

For Sheheri Vitrak, Rurban Vitrak and Gramin Vitrak the selected candidate has to develop adequate delivery infrastructure for Home Delivery of LPG Cylinders to the customers as specified by the OMCs in the LOI. Further, the selected candidate has to procure adequate number of electronic portable weighing scales of required specification for demonstration of correct cylinder weight to the customers as per statutory regulations.

PERSONAL SUPERVISION

A person selected for the distributorship will have to personally manage the operation of the LPG Distributorship. He/she will not be eligible for taking up any other employment. If the selected person is already employed he/she will have to resign from the employment and produce the letter of acceptance of resignation by the employer before the issuance of Letter of Appointment (LOA) by the PSU Oil Marketing Company.

Before issuance of LOA by the OMC, the selected candidate would also be required to submit a Notarized Affidavit certifying that he/she is not employed in private sector or are not drawing any salary/perks/emoluments (other than pension) from the State/Central Government/PSU.

SCHEME OF FINANCIAL ASSISTANCE TO SC/ST CATEGORY DISTRIBUTORSHIPS

The Selected Candidate for the location reserved under SC/ST category has the option to avail the Financial Assistance Scheme as given below.

Oil Marketing Companies (OMCs) shall facilitate the selected candidate belonging to SC/ST category in obtaining the loan from scheduled commercial bank for providing the LPG Godown, Showroom and LPG cylinder delivery infrastructure. In this regard, if the banks require any margin money to be invested by the candidate in providing the above mentioned facilities, OMCs shall extend financial assistance by way of a secured loan towards such margin money. The margin money shall however be limited to Rs. 1 Lakh for Urban market Distributorships and Rs. 0.60 lakh for Urban-Rural & Rural market Distributorship or 20% of the total project cost against which the loan has been sanctioned by Bank, whichever is lower.

The secured loan towards the margin money will be provided to Distributorships reserved for SC/ST categories at (SBI PLR + 1 %) interest per annum. This loan as well as interest will be recovered at the rate of 20% of distributor’s commission.

Adequate working capital loan at (SBI PLR + 1 %) interest per annum, for a full operation cycle of the operation of the distributorship will also be provided. Both the working capital as well as interest thereon will be recovered in 100 equal monthly instalments from the 13th month of commissioning of the Distributorship.

SECURITY DEPOSIT:

There are different criteria for security deposit amounts for various categories. Refer the below table.

Type of Distributorship

 

Open

 

OBC

 

SC / ST

 

Sheheri Vitrak/ Rurban Vitrak

 

5,00,000

 

4,00,000

 

3,00,000

 

Gramin Vitrak / Durgam Kshetriya Vitrak

 

4,00,000

 

3,00,000

 

2,00,000

 

The security deposit of 10% applicable for the respective type/category of LPG Distributorship collected from the selected candidate prior to issuance of LOI will be adjusted against the above security deposit as applicable.

OMCs will reserve the right to adjust any dues to it from the Security Deposit amount at the time of resignation/ termination. However, in case of termination of the distributorship is on account of proven malpractice, the said security deposit will be forfeited.

COMMISSIONING OF THE DISTRIBUTORSHIP:

A candidate who has been given the ‘Letter of Intent’ (LOI) would be required to fulfill the terms and conditions as contained therein, so as to commission the distributorship within the stipulated time period (four months from the date of issuance). The selected candidate (LOI holder) would be given training and has to clear pre-commissioning quiz/test by scoring qualifying marks that is 80%. In case LOI holder secures less than 80% marks in the quiz, re-training would be given and re-test conducted.

TENURE OF DISTRIBUTORSHIP:

The tenure of the HPGas & Bharatgas Distributorship shall be for an initial period of 10 years and renewable for every 5 years thereafter, subject to the examination of the performance of the distributorship by the respective OMC and decision thereon.

The tenure of the INDANE LPG Distributorship shall remain in force for an initial period of 10 years from the date of execution of Distributorship Agreement and continue thereafter until determined as per rights mentioned in the Distributorship agreement.

ADVERTISEMENT FOR DISTRIBUTORS:

People, who are interested in taking a distributorship, may check the below link time to time for Advertisements regarding appointment of new LPG distributors.

https://ebharatgas.com/ebharat/forBusiness/Advertisements.html

Regional Offices

North

Regional LPG Manager - (Northern Region )
Bharat Petroleum Corporation Ltd.
Plot No. A-5 And A-6, Sector -1, 
Udyog Marg, Noida -201301
Telephone          : 0120-2474768, 2474701, 2474703

South

Regional LPG Manager ( Southern Region ) 
Bharat Petroleum Corporation Ltd.
1,Ranganathan Garden, Off.11th Main Road,
Post Box No.1212&1213 , Anna Nagar,
Chennai - 600040
Telephone          : 044-26216689

East

Regional LPG Manager ( Eastern Region )
Bharat Petroleum Corporation Ltd.
Bharat Bhavan, Plot No- 31, 
Prince Gulam Md. Shah Road, 
Golf Green Kolkata - 700095
Telephone          : 033-24293050/51

West

Regional LPG Manager ( Western Region )
Bharat Petroleum Corporation Limited,
BPCL Office Complex
Plot No 6, Sector 2
Behind CIDCO Garden
Khargar - 410210
Navi Mumbai, Maharashtra
Tel No                   :- 022-27764500 Extn : 4500
Fax                       :- 022-27764771

 

All India Emergency Help-line No. (For LPG leakage complains): 1906

Bharatgas Toll Free No.:  1800 22 4344



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