Executive Summary:
This document addresses Lok Sabha Unstarred Question No. 917 regarding the distribution of petrol pumps and gas agencies to Scheduled Castes (SCs) and Scheduled Tribes (STs) in Uttar Pradesh. It clarifies the procedures for dealer selection post-APM dismantling and reservation policies for SC/ST candidates. The document also outlines actions against violations of dealership agreements, including benami operations.
Key Points / Main Content:
Dealer Selection and Reservation:
* Since April 1, 2002, Retail Outlet (RO) and LPG distributorship selections are managed by Public Sector Oil Marketing Companies (OMCs).
* As per 2023 guidelines, 22.5% of advertised locations are reserved for SC/ST candidates in all states except Arunachal Pradesh, Meghalaya, Nagaland, and Mizoram.
* In Arunachal Pradesh, Meghalaya, Nagaland, and Mizoram, RO dealer reservations for ST are 70-90% and LPG distributor reservations are 49-63%.
* Detailed norms are available at www.petrolpumpdealerchayan.inpetrol2023 and www.lpgvitarakchayan.in.
Allotments in Uttar Pradesh:
* During the last eleven years and the current year, PSU OMCs allotted 2447 RO dealerships and 63 LPG distributorships to SCs in Uttar Pradesh.
* During the same period, PSU OMCs allotted 420 RO dealerships and 5 LPG distributorships to STs in Uttar Pradesh.
Dealership Agreement and Violations:
* Post selection, PSU OMCs execute Dealership/Distributorship Agreements that require dealers to maintain control over the RO/LPG dealership.
* Violations, including benami operations, may lead to termination of the dealership/distributorship.
* PSU OMCs regularly verify dealer credentials for benami operations and take action based on the agreement for established cases.
Reconstitution Guidelines:
* ROs allotted to SC/ST can be reconstituted after three years with a non-SC/ST partner holding a maximum share of 25%, ensuring the controlling stake remains with the SC/ST dealer.
Impact Analysis:
PSU Oil Marketing Companies (OMCs):
* Impact: Responsible for adhering to the Dealer Selection Guidelines 2023 and the Unified Guidelines for LPG distributorships, ensuring the mandated reservations for SC/ST candidates are met. Also responsible for monitoring and taking action against violations of Dealership/Distributorship Agreements, including benami operations.
* Action Required: Implement the guidelines, monitor dealerships for compliance, and take action against violations as per the agreement.
SC/ST Candidates and Dealers:
* Impact: Benefit from reserved dealership locations. Must adhere to the terms of the Dealership/Distributorship Agreement to maintain control over the dealership and avoid termination.
* Action Required: Apply for dealerships under the reserved categories, maintain operational control of dealerships, and comply with the terms of the Dealership/Distributorship Agreement.
General Public:
* Impact: The policy ensures representation and economic upliftment of SC/ST communities through petrol pump and gas agency ownership.
* Action Required: None.
Key Entities Referenced
Scheduled Castes: A group of historically disadvantaged communities in India, also referred to as SCs, who are beneficiaries of affirmative action policies.
Scheduled Tribes: A group of historically disadvantaged indigenous communities in India, also referred to as STs, who are beneficiaries of affirmative action policies.
Uttar Pradesh: A state in Northern India, specifically mentioned in the context of petrol pump and gas agency distribution to SC and ST communities.
PETROLEUM AND NATURAL GAS: The ministry responsible for matters related to petroleum and natural gas.
Administered Pricing Mechanism: The mechanism that was dismantled w.e.f 1.4.2002 for pricing and distribution in the petroleum sector.
Public Sector Oil Marketing Companies: Government-owned companies (OMCs) responsible for the selection of Retail Outlet dealers and LPG distributorships.
LPG: Liquefied petroleum gas.
Shri Suresh Gopi: Minister of State in the Ministry of Petroleum and Natural Gas
LOK SABHA
UNSTARRED QUESTION NO. 917
TO BE ANSWERED ON 24th July, 2025
Distribution of Petrol Pumps and Gas Agencies to SCs and STs in Uttar Pradesh
†917. Shri Daroga Prasad Saroj
पेट(cid:332)ोिलयम एवं (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) whether the Government has discontinued the Quota or distribution of petrol pumps and
gas agencies to the people of Scheduled Castes (SCs) and Scheduled Tribes (STs)
community in the country meant for their upliftment;
(b) if so, the details thereof along with the efforts being made by the Government to restart
the same;
(c) the number of petrol pumps and gas agencies distributed/awarded to the people of SC
and ST communities in the State of Uttar Pradesh during the last eleven years and the
current year for their upliftment; and
(d) whether the Government has taken cognisance of the cases under the said quota in the
State of Uttar Pradesh particularly in the districts of Azamgarh, Mau, Ballia and Jaunpur,
where petrol pumps were taken over by large businessmen and the original owners
were/are working as employees for a salary between Rs. 15000 to Rs. 20000 and if so, the
reaction of the Government thereto?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475) मं(cid:361)ी
((cid:302)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) & (b) Subsequent to dismantling of Administered Pricing Mechanism (APM) w.e.f.
1.4.2002, the selection of Retail Outlet (RO) dealers and LPG distributorships are done
by Public Sector Oil Marketing Companies (OMCs) themselves for all categories
including SC and ST.As per extant Dealer Selection Guidelines 2023 for retail outlets and extant Unified
Guidelines for selection of LPG distributorships of Public Sector OMCs, 22.5%
advertised locations are reserved for SC and ST candidates in all states except states of
Arunachal Pradesh, Meghalaya, Nagaland and Mizoram. In the states of Arunachal
Pradesh, Meghalaya, Nagaland and Mizoram 70,80, 80 & 90 % of advertised locations
for RO dealers and 49,56,56 & 63 for LPG distributors are reserved for ST category
respectively. Detailed Norms/Criteria/Reservation for allotment of RO dealerships in
the country are available at www.petrolpumpdealerchayan.in/petrol-2023/ and the
detailed guidelines regarding selection of LPG distributorships are available at
www.lpgvitarakchayan.in.
(c) The numbers of Retail Outlets and LPG Distributorships allotted to SC and ST
communities in the State of Uttar Pradesh during the last eleven years and the current
year are as below :-
RO Dealerships LPG Distributorships
PSU OMC
SC ST SC ST
OMC 2447 63 420 5
(d) Post selection, PSU OMCs execute Dealership/Distributorship Agreement with the
dealer. As per the Dealership/Distributorship Agreement, dealer is bound to maintain
control over the RO/LPG dealership. Any violation in this regard is treated as violation
of the Dealership/Distributorship Agreement, which may lead to the termination of the
dealership/distributorship. Further, credentials of the dealers/distributors with respect to
benami operations are verified on a regular basis by PSU OMCs. Action as per the
Dealership/Distributorships Agreement is taken on established cases of benami
operations.
As per extant Reconstitution Guidelines of PSU OMCs, ROs allotted to SC/ST can be
reconstituted after three years with induction of non-SC/non-ST category partner with
maximum share of 25% only with controlling stake remaining with SC/ST dealer.
****