HP Petrol Pump Dealership: Details, Eligibility & Documents

This blog is about HPCL Petrol Pump Dealership and everything related to it. If you wish to get a dealership, you must be aware of the knick-knacks that are listed on this blog.

The majority of the public in our country has a common idea that the gas station business is profitable and has decent returns. Nevertheless, in recent decades, gas pump income has undergone a significant transformation. The increasing number of automobiles in our nation has boosted the need for fuel, increasing the demand for gas stations. The studies state that an average Indian gas station sells about five lakh litres of gasoline and diesel each month. With its headquarters in Mumbai, Maharashtra, Hindustan Petroleum Corporation Limited (HPCL) is a government-owned Navratna oil and gas business. In India, the managing relationships are 14,675 gas stations. The steps for starting an hp petrol pump dealership are described in depth in this post. In case you are interested to take up the dealership of an HPCL petrol pump in India, then, this blog shall generate immense interest for you!

The Locations Of The HPCL Retail Stores

Have you ever thought of taking an HPCL dealership? Prior to that, experts reveal that there are certain norms to be met, while the suitability to undertake such a project will be judged by the parent organisation. 

It is important to know that, after considering the viability, HPCL selects the site for the dealership. It is important for the owner to understand that the preferred site needs to be located strategically and at the same time, should be well connected with highways, bypass lanes or major arterial roads.  Post the site is chosen by the given authorities, HPCL publishes advertisements for the chosen areas. Consequently, the corporation will also establish regular and rural HPCL retail locations simultaneously. Following certain points, experts from the related field state that:

• Regular HPCL Retail Outlets (ROs) are found in urban and semi-urban regions near highways (NH/SH).
• Rural HPCL Retail Outlets (ROs): Sites that are off of highways (NH/SH) yet in rural areas

Proximity to highways, main roads, and bypass connectivity seems to increase the probability of the site being chosen.

What are the Qualifications For Opening An HPCL Petrol Pump?

The following describes the eligibility requirements for shortlisted candidates who will be called for collaboration or ownership of an HP petrol pump dealership establishment.

• A citizen of India may own an HPCL gas station, following income tax regulations.
• The individual’s age should be at least 21 and not more than 55, except for freedom fighters who fall under the CC2 category.
• The individual’s minimal educational requirement to operate a rural HPCL ROs is the 10th standard.
• The candidate must meet the minimum requirement of passing an HSC-level test administered by a board or institution to create regular HPCL ROs.

Eligibility Criteria for HP Petrol Pump Dealership – Finance

The investment criteria for qualifying for standard HPCL ROs will be Rs. 25 lakhs, and the money criteria for qualification for rural HPCL ROs will be Rs. 12 lakhs. The money may take any of the subsequent forms:

• Money held in savings accounts and bank deposits
• Company stock, National Savings Programs, Companies or Postal Schemes, Income Funds

Investment Information for HPCL’s Retail Store

The public investment required to construct an HPCL gas station differs from place to place based on the property’s price, the site’s length, and the amenities that must be built to fulfill customers’ needs in the HPCL retail outlet’s trade region. The announcement will estimate the sums needed to create the buildings and infrastructure at the future HPCL retail locations.

Application and Franchise Fee for HPCL Petrol Pump Retail Outlets

• There is a Rs. 100 application fee for Rural HPCL ROs and an Rs. 50 cost for SC/ST applicants.
• A charge of Rs. 1000 must be paid to apply for an average HPCL retail shop. The SC/ST group requires Rs. 500 fees.

Eligibility Criteria for Entity (NonIndividual Applicants)

• Non Individual entities should be registered in India
• The entity should have been registered or incorporated for at least three years
• Similar conditions as for individuals apply concerning land and finance

Documents Required to Open a HPCL Petrol Pump

Documentation is the first and foremost part of making a relevant application for opening an HP petrol pump dealership outlet. In order to understand the same, please go through the given content carefully. 

The following documentation must be provided to register for an HPCL retail outlet dealership.

For educational credentials from foreign universities or boards, a comparable certification by the proper officer, State Government, or Central Government is required. Value credentials and a duplicate NSC are necessary for the purchase price. Value credentials and a duplicate of the Demat declaration are also needed for the registration communities or businesses.

Documents Needed to Prove HPCL Dealership

To prove that the candidate is the proprietor of the property proposed for the HP petrol pump dealership, at least one of the following documents must be submitted:

• Registration gift agreement or registration sale deed
• Registered Khasra or Khatauni or any other comparable income record or diploma from revenue officials verifying the condition of the acquisition of the property
• Any other type of shareholdings or transmit deed memorandum, such as Mutation record
• Lease contract notice signed by the Government or Semi Governing entities

HPCL Retail Outlet Sites

HPCL, or Hindustan Petroleum Corporation Limited, offers retail outlet dealership opportunities. Here is an overview of the requirements and process:

Types of HPCL Retail Outlet Sites and Eligibility Criteria:

• CFS Sites (Locations under Corpus Fund Scheme): Land offered will be purchased or leased and fully developed as a corporation-owned site.
• “A”/”CC” Sites (Other Corporation Owned Sites): The offered land will be purchased or leased and fully developed as a corporation-owned site.
• Company Leased Site: The offered land, along with the superstructure, needs to be developed by the dealer, and it will be taken on lease by HPCL.
• “B”/”DC” Sites (Dealer Owned Sites): The offered land and superstructure will need to be developed by the dealer. HPCL will provide the petrol and diesel pump, tank, automation, signage, etc.

Basic Facilities Required for Operation of HPCL Retail Outlet

HPCL retail outlets, also known as petrol pumps, are expected to provide certain facilities for their operation. These facilities can vary depending on the type of site (e.g., “A”/”CC” site, “B”/”DC” site, or Company Leased site). Here is an overview of the facilities and who is responsible for providing them:

Infrastructural Facilities:

1. Developed Land with Boundary and Compound Wall:

• The dealer is responsible for   “A”/”CC” sites including CFS locations.
• The dealer is responsible for   “B”/”DC” Site / Company Leased sites.

2. Tanks, Dispensing Units, Signage, Automation:

• The Corporation is responsible for both “A”/”CC” sites and “B”/”DC” Site / Company Leased sites.

3. Sales Office, Store Room, Toilet, Electrical Room, Water Connection, Yard Lighting:

• “A”/”CC” site including CFS locations is the responsibility of the dealer
• “B”/”DC” Site / Company Leased site is the responsibility of the corporation 

4. Generator or Inverter:

• The dealer is responsible for both “A”/”CC” sites and “B”/”DC” Site / Company Leased sites.

5. Compressor with Electronic Gauge for Air Filling (As decided by OMC):

• Both Corporation/Dealer are responsible for “A”/”CC” sites and “B”/”DC” Site / Company Leased sites.

6. Driveway:

• The corporation is responsible for “A”/”CC” sites including CFS locations
• Dealer is responsible for “B”/”DC” Site / Company Leased site.

7. Canopy (As per Corporation Requirement):

• Corporation is responsible for “A”/”CC” sites including CFS locations.
• Dealer is responsible for “B”/”DC” Site / Company Leased site.

8. Customer Convenience Facilities: Clean Drinking Water, Neat and Clean Toilet, Telephone, etc:

• The dealer is responsible for both “A”/”CC” sites and “B”/”DC” Site / Company Leased sites.

Firefighting & Safety Equipment

The dealer is responsible for providing firefighting and safety equipment at the HPCL retail outlet as per statutory requirements. Trained staff should be available to handle and operate this equipment.

Licence Fee Payable

The license fee payable depends on the type of site and whether it’s a corporation-owned site or a dealer-owned site:

For corporation-owned “A”/”CC” sites (including CFS locations), the license fee is Rs. 48 per kilo letter for Petrol (MS) and Rs. 41 per kilo letter for Diesel (HSD).

For dealer-owned “B”/”DC” sites, the license fee is around Rs. 18 per KL for Petrol (MS) and Rs. 16 per KL for Diesel (HSD).

In some cases where the land and superstructure are leased, the same amount will be recovered from the dealership as an additional license fee at a lower rate.

HPCL Retail Outlet Management

1. Those selected for the HPCL retail outlet dealership are expected to personally manage the day-to-day operations.
2.  Dealers are not allowed to take up other employment.
3. If the selected candidate is already employed, they must resign and provide a letter of acceptance of the resignation from the employer before receiving a letter of appointment from HPCL.
4. At the time of issuance of the letter of appointment, the LOI holder must provide a notarized affidavit stating that they are not employed in the private sector or are not drawing any salary.
5. Entities selected for the dealership are responsible for managing the day-to-day affairs under the supervision of their employees and in accordance with the dealership agreement.

Dealer Commission Rate

HPCL awards a commission to dealers on every litre of petrol and diesel they sell. The rate is Rs 2.58 commission per litre of petrol (MS) and Rs 1.65 as dealer commission per litre of diesel (HSD).

Selecting Dealers for HPCL Retail Outlets

The selection process for the HPCL Retail Outlet (Petrol Pump) dealership will involve accepting applications through advertising placed under the relevant category in two publications (one in Hindi and one in English). Based on the type of HPCL retail store location, priority will be determined either through a drawing of lots or a competitive bidding procedure. Additionally, each location’s specifics will be listed in the marketing.

Amount Of The Bid

A non-refundable fixed fee of ₹5 lakhs for a rural HPCL retail establishment and ₹15 lakhs for a standard HPCL retail establishment will be due in the case of dealer-owned or company-leased properties.

The minimum bid value will be ₹10 lakhs for a Rural HPCL retail outlet and ₹30 lakhs for standard retail outlets for HP Corporation-owned properties that are up for allocation. For Rural HPCL ROs, the applicant must deposit ₹50,000, and for Regular HPCL retail locations, ₹1.5 lakhs.

Advantages of HP Petrol Pump Dealership

Starting an HPCL (Hindustan Petroleum Corporation Limited) dealership comes with several advantages, making it an attractive business opportunity. Here are the key advantages of having an HP petrol pump dealership:

1. Stable Demand: The demand for petrol and diesel remains consistently high. Despite fluctuations in fuel prices, people rely on vehicles for their daily transportation needs. This ensures a steady and reliable customer base, reducing the risk of business downturns.
2. Government Ownership: HPCL is a government owned company, which means it is less susceptible to policy changes and market fluctuations that can affect private players. As an HPCL franchise holder, you benefit from the stability and support of a government controlled entity.
3. Growth Potential: The number of vehicles on the road continues to increase, leading to higher sales for petrol pump owners. The more vehicles on the road, the greater the demand for fuel. Additionally, HPCL franchises often offer various services that can generate additional revenue, such as vehicle maintenance, convenience stores, and more.
4. Brand Reputation: HPCL is a well established and respected brand in the petroleum industry. The trust and recognition associated with the HPCL name can attract customers and build loyalty. Customers often prefer well known and reliable brands for their fuel needs.
5. Location Advantage: The success of a HP petrol pump dealership often depends on its location. Choosing a busy location, such as one near a highway or in a densely populated area, can ensure a constant flow of vehicles and higher business opportunities. Strategic placement can significantly impact your profitability.
6. Steady Income: The sale of fuel is essential for vehicles to operate, ensuring a consistent income stream. In addition to fuel sales, you can explore other revenue sources by offering services, making the business even more financially viable.
7. Government Support: As a government affiliated business, HPCL may benefit from government policies and incentives. Government support can include favorable financing options, tax benefits, and other forms of assistance to promote the success of HPCL franchises.
8. Operational Assistance: HPCL may provide operational support, training, and resources to help franchise holders run their businesses efficiently. This can include assistance with compliance, safety standards, and other operational aspects.

Conclusion

Taking the HP petrol pump dealership, that also of a Navratna brand like HPCL, is not easy. The first and foremost point remains to be a procedural approach in making a formal application on the basis of eligibility. Adopting a step-by-step approach needs to be taken, while, one needs to be careful to pay caution money, to the parent organisation. For more information related to this topic, keep an eye on Vakilsearch. 

FAQs on HP Petrol Pump Dealership

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