HPCL Petrol Pump Dealership
HPCL Petrol Pump Dealership & Franchise
Petrol pump business is a lucrative business with good returns is a general perception among the significant proportion of total population in our country. However, petrol pump profitability has been transformed dramatically over the past decades. The growing number of vehicles across our country has led to an increase in fuel demands and ultimately increases the need for petrol pumps. According to the reports, an average petrol pump sells almost five lakh litres of fuel, petrol and diesel every month in India. Hindustan Petroleum Corporation Limited (HPCL) is a Government of India controlled Navratna oil and gas company headquartered in Mumbai, Maharashtra. The corporation operates 14,675 Petrol Pumps all over India. This article provides the procedure for opening an HPCL Petrol Pump dealership in detail.
Know more about Starting a Petrol Pump Business
Locations for HPCL Retail Outlet
HPCL decides the location for setting up the dealership after studying the feasibility. After that, HPCL releases advertisement for the locations identified. Accordingly, regular and rural HPCL retail outlets will also be set up by the company.
- Regular HPCL Retail Outlet (ROs): Locations on highways (NH/SH) urban and semi-urban areas
- Rural HPCL Retail Outlet (ROs): Locations in rural regions but not on highways (NH/SH)
HPCL Retail Outlet Sites
The HPCL Company will decide the type of sites for HPCL retail outlets. The status of land and facilities will categorise the site.
|S.No||Type of Site||
Status of Land & Facilities
|1||CFS Sites (Locations under Corpus Fund Scheme)||
The offered land for outlet will be taken on purchased or lease-purchase and fully developed as the corporation owned site.
|2||2 “A”/ “CC” sites (Other Corporation Owned Sites)||
The offered land will be taken on purchased or lease and fully developed as the corporation owned site
|3||Company Leased Site||The offered land along with superstructure need 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 the superstructure will need to be developed by the dealer. Petrol & Diesel pump, tank, automation, signage, etc. will be provided by the HPCL.
Note: Offered lands can either be taken from the applicant or the owner of the land directly
Eligibility Criteria for Opening HPCL Retail Outlet
Eligibility Criteria for individual applicants for Partnership or Proprietorship of HPCL retail outlet is described below.
- A resident of India (as per Income tax rules) can own an HPCL Petrol Pump
- Age of the applicant should more than 21 years and not more than 55 years except for freedom fighters under the CC2 category.
- For operating a rural HPCL ROs, the applicant should have the minimum qualification of 10th standard
- For establishing regular HPCL ROs, the applicant should have the minimum qualification of HSC level of examination conducted by a board or university
Eligibility Criteria – Finance
For regular HPCL ROs, the fund requirements for eligibility will be Rs. 25 lakhs and in respect of Rural HPCL ROs the fund requirement for eligibility will be Rs. 12 lakhs. The funds can be in the following forms:
- Funds in savings accounts, deposits with a bank
- Companies or Postal Schemes
- Company shares
- National Savings Schemes
- Mutual Funds
Note: Only 60% of the certified value (for shares, mutual funds & bonds) will be considered for eligibility.
Eligibility Criteria for Entity (Non-Individual Applicants)
Non-individual applicant or entity refers to Government bodies or agencies, societies registered under Societies Registration Act or societies registered under co-operative societies Act, or co-operative societies act as enacted by concerned states, charitable trusts registered with the charity commissioner, companies formed under the Companies Act (except Pvt. Ltd. companies).
Residential status: The entity should be registered in India
Age: The date of Registration or incorporation of the firm or entity should be at least three years
Land: Concerning land, all conditions covered for individuals would apply excepting clauses are given for land owned by the family unit.
Finance: All conditions covered for individuals will be applied excepting finance offered by the family unit.
Investment Details – HPCL Retail Outlet
The capital investment required for setting up of an HPCL petrol pump outlet varies from location to location depending on the cost of land, size of plot and facilities needed to be developed to meet the requirements of consumers in the trading area of the HPCL retail outlet. The approximate investments required for the development of infrastructure and facilities at New HPCL retail outlets will be indicated in the advertisement.
In case of dealer-owned or company leased sites, a non-refundable fixed fee of Rs. 5 lakhs for Rural HPCL retail outlet and Rs. 15 lakhs for Regular HPCL retail outlet will be payable.
In case of HP corporation owned sites involving bidding for allotment, the minimum bidding amount of Rs. 10 lakhs for Rural HPCL retail outlet and Rs. 30 lakhs for regular retail outlets will be payable. The applicant needs to deposit Rs. 50,000 for Rural HPCL ROs and Rs. 1.5 lakhs for Regular HPCL retail outlets.
HPCL Retail Outlet Application Fee
- Application fee of Rs.100 for Rural HPCL ROs have to be paid, and price for SC/ST applicant is Rs.50
- For applying regular HPCL retail outlet application fee of Rs.1000 have to be paid. Fee for SC/ST category is only Rs.500.
Note: The application fees have to be paid in the form of demand draft in favour of the HPCL.
Following documents need to be furnished to apply for HPCL retail outlet dealership.
- Residence certificate
- Proof of age – Secondary School Leaving Certificate, birth certificate, passport or voter ID
- For educational qualification from overseas universities, or boards, an equivalent certificate issued by the competent authority or State Government or Central Government
- Redemption value – Valuation certificates along with a copy of NSC
- Valuation certificates along with a copy of the demat statement
- Registered societies or companies should have made a net profit for the previous three consecutive financial years duly certified by a Chartered Accountant
- Copy of Passbook, account statement, deposit receipts
- Valuation certificates and a copy of mutual fund certificates or demat statements
Documents Required for Ownership Proof
The applicant should submit at least any one of the following materials in support of ownership of land offered for the HPCL Dealership:
- Khasra or Khatauni or any other equivalent revenue document or certificate from revenue officers confirming the status of the purchase of the property
- Registered lease deed for a minimum period (as per advertisement)
- Registered gift deed or registered sale deed
- Any other type of ownership or transfer deed document such as Mutation record
- Lease agreement letter issued by the Government or Semi Government bodies
HPCL Retail Outlet Dealership Selection Procedure
HPCL Retail Outlet (Petrol Pump) dealership selection will be made by inviting applications through advertisements under appropriate category in two newspapers (English and one Hindi / vernacular). Preference will be made through a draw of lots or bidding process depending upon the type of HPCL retail outlet site. Details will also be mentioned against each location in the advertisement.
The applicant can also get advertisements details from the official website of HPCL.
The applicant has to apply in a prescribed format for applying HPCL retail outlet. Application format for HPCL retail outlet dealership is enclosed here:APPLICATION-FOR-HPCL-RETAIL-OUTLET-PETROL-PUMP-DEALERSHIP-Application
The applicant has to submit an affidavit in a standard form along with the HPCL dealership application.
We have here with attached an affidavit format for the individual:APPLICATION-FOR-HPCL-RETAIL-OUTLET-PETROL-PUMP-DEALERSHIP-AFFIDAVIT-FOR-INDIVIDUALS-PARTNERS
Affidavit format for non-individual is enclosed here:
- All affidavits should be submitted in original on stamp paper of appropriate value as applicable in the concerned State.
- All Stamp papers should be purchased in the name of the deponent.
- All affidavits should be made after the date of advertisement.
Completed applications have to be furnished to the concerned Regional Office within the time limit as stipulated in the advertisement.
HPCL Retail Outlet Dealership – Online Application
For applying online for HPCL retail out the dealership, the applicant needs to visit HP retail webpage. From the main page click on ‘About HP retail’ option, the link will redirect to new page.
In the new page select Petrol Pump Dealership from the menu bar. The link will move to a new page.
Click on online application for applying for HPCL retail outlet dealership.
To apply the applicant need to register in the portal. By clicking on the Applicant registration option, the link will redirect to the registration page. Provide all required details and click on submit.
Provide Details in Application
After registration applicant can apply for HPCL retail outlet. Select state and district from the drop-down menu. Once selected the application form will be displayed, enter all details and upload documents (refer above). Click on submit; the application number will be displayed. Keep it safe for future reference.
The applicant can take print of the application by providing application number, email ID and password.
Get Letter of Intent
After the verification of details, the HP Corporation will issue a letter of intent to the selected dealers.
Categories of Applicant
After receiving the application, the applicants will be classified into two groups as mentioned below based on the land offered by them
- Group 1: Applicants are having a suitable piece of land in the advertised location or area either by way of ownership or long-term lease for minimum years (as advertised by HPCL).
- Group 2: Applicants are having a firm offer for a suitable piece of land for purchase or long-term lease for minimum years (as advertised by HPCL).
Basic facilities required for Operation of HPCL Retail Outlet
The following facilities are expected to be provided at the HPCL retail outlet.
Type of Facility
|“A” / “CC” site including CFS locations||B”/ “DC” Site / Company Leased site|
|Provision of Facility by|
|1||Developed land with boundary and compound wall as per corporation specification||Dealer||Dealer|
|2||Tanks, Dispensing Units, Signage, Automation||Corporation||Corporation|
|3||Sales Office, Store Room, Toilet, Electrical Room, Water Connection, Yard Lighting||Corporation||Dealer|
|4||Generator or Invertor||Dealer||Dealer|
|5||Compressor with electronic gauge for air filling (As decided by OMC)||Corporation/ Dealer||Dealer|
|7||Canopy (as per Corporation requirement)||Corporation||Dealer|
|Customer Convenience Facilities|
|1||Clean drinking water, maintenance of neat & clean toilet, telephone, etc||Dealer||Dealer|
Firefighting & Safety Equipment
The dealer will provide with firefighting and safety equipment at HPCL retail outlet as per the statutory requirements. Trained staff will be available to handle and operate the same.
Licence Fee Payable
In case of a corporation owned “A” / “CC” site HPCL ROs dealerships, a Licence Fee payable on per kilo letter basis will be recovered from the dealer. At present is Rs. 48 per kilo letter for Petrol (MS) and Rs. 41 per kilo letter for Diesel (HSD)
For Dealer owned “B” / “DC” site HPCL retail outlets, this licence fee will be around Rs. 18 per KL for petrol (MS) and Rs. 16 per KL for diesel (HSD)
In some instances, the land and superstructure (constructed by the HPCL dealer), will be taken on lease from the selected candidate. The HPCL will pay the rentals as mutually agreed and the same amount will be recovered from the dealership an additional licence fee. In such cases, the licence fee as applicable will be recovered at the lower rate which at present is Rs. 18 per KL for MS and Rs. 16 per KL for HSD.
Know more about Petrol Pump License Eligibility
Dealer Commission Rate
Hindustan Petroleum Corporation Limited (HPCL) awards Rs 2.58 commission to dealers on every litre of petrol they sell, whereas the corporation pays Rs 1.65 as dealer commission on per litre of diesel.
HPCL Retail Outlet Management
- A person selected for the HPCL retail outlet dealership will be paying attention towards day to day work by personally managing the affairs of the dealership.
- HPCL dealer will not allow for taking up any employment.
- If the selected candidate is already employed, she or he will have to resign from the employment and produce the letter of acceptance of the resignation by the employer before the issuance of a letter of appointment by the HPCL.
- Further at the time of issuance of the letter of appointment, the LOI holder will have to give a notarised affidavit stating that he is not employed in Private Sector or is not drawing any salary.
- An entity selected for the dealership will have to manage the day to day working or affairs of the dealership under the supervision of their employees and in line with the provisions of the dealership agreement.
Post by Renu Suresh
Renu is experience content writer specialised in compliances and company rules.