Electric vehicle charging stations, release of CNG to gasoline pumps before gasoline sales: government

The Ministry of Petroleum and Natural Gas, in a clarification of its decree of November 8, 2019 which relaxed the standards for the installation of petrol pumps by new entities, said the decree provided for petrol pumps to sell fuel. new generation alternative such as CNG, LNG or electric vehicles. charging stations alongside the retail sale of gasoline and diesel, but does not prescribe order of their establishment.

“While an authorized entity is required to install its petrol and diesel outlets … said entity is required to install facilities for at least one new generation alternative fuel such as CNG, biofuels, LNG, electric vehicle charging points, etc. proposed retail outlets, ”the ministry said in an Oct. 5 notice.

However, the 2019 decree “does not prescribe the order in which the distribution of conventional fuels (gasoline and diesel) and new generation alternative fuels would be launched, that is to say the distribution of biofuels and CNG. , EV charging can be started before the distribution of gasoline and diesel, ”he said.

The new liberalized rule allows any entity with a minimum net worth of ??250 crore to apply for permission to retail gasoline and diesel.

As part of the November 2019 policy, a fuel pump license has so far been granted to Reliance Industries Ltd, IMC Ltd, Onsite Energy Pvt Ltd, Assam Gas Company, MK Agrotech, RBML Solutions India Ltd and Manas Agro Industries and Infrastructure.

RIL already had a retail fuel license, under which it had installed more than 1,400 gasoline pumps in the country. But this license was transferred to its subsidiary Reliance BP Mobility (RBML).

And so, billionaire Mukesh Ambani’s company applied and got another license.

The company’s separate joint venture with BP, called RBML Solutions India Ltd, was also licensed.

It is not clear whether RIL and RBML Solutions will implement separate competing gas pumps.

In addition to removing the previous requirement to invest ??2000 crore in the oil and gas industry to be eligible for a retail fuel license, the new liberalized gasoline pump standards require licensees to establish a minimum of 100 outlets, of which at least 5% in remote areas.

The license holder is required to “install facilities for the marketing of at least one new generation alternative fuel such as compressed natural gas (CNG), biofuels, liquefied natural gas, recharging points for electric vehicles, etc. . “

that corrects ??250 crore as the minimum net worth to obtain the license.

The state-owned petroleum marketing companies – Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) – currently own most of the country’s 78,751 gas pumps.

RBML, Nayara Energy (formerly Essar Oil) and Royal Dutch Shell are the private players in the market but with a limited presence. RBML has 1,427 points of sale, Nayara 6,250 while Shell has only 285 pumps.

BP had obtained a license a few years ago to install 3,500 pumps but has not yet started to do so. He has since decided to go into the business with RIL with plans to increase RIL’s current grid power to 5,500.

The licenses granted include IMC, based in Chennai (formerly called Indian Molasses Company), which specializes in oil terminals, and the government-owned Assam, Assam Gas Company.

Assam Gas Company is in the gas transportation business.

Not much is known about Onsite Energy, which was incorporated in May 2020.

MK Agrotech is part of a diverse conglomerate with interests in agricultural products such as sunflower oil, real estate, and crude oil and gas extraction, while Manas Agro Industries and Infrastructure has its own brand of liquefied petroleum gas (LPG or cooking gas).