**Executive Summary:**
This document summarizes guidelines for developing 'A' category Retail Outlet (RO) sites, as outlined in the Dealer Selection Guidelines (DSG) for Public Sector Oil Marketing Companies (OMCs). It details the responsibilities of both the dealer (LOI holder) and the OMC regarding land development, facility provision, and regulatory compliance, including tank installation protocols and mineral extraction regulations. The document addresses Lok Sabha Unstarred Question No. 814, to be answered on July 24, 2025.
**Key Points / Main Content:**
* **Development Responsibilities (A Category RO Sites):**
* **Dealer Responsibilities:** Land development, including entry/exit, acceleration/deceleration lanes, service roads, boundary/retention walls (as per OMC specifications), Sales Office, Storeroom, Toilet, Electrical Room, Electrical connection of capacity as advised by OMC, Water Connection, Yard Lighting, Generator Invertor, Compressor with Electronic Gauge for Air Filling, Clean Drinking Water, Maintenance of Neat Clean Toilet, Telephone, Firefighting/Safety equipment.
* **OMC Responsibilities:** Underground tanks, Dispensing Units, Signages, Automation, Driveway, Canopy. Site specific additional facilities required for customer service such as Staff cum Change Room, Service Station, Rest Room, Restaurant, PUC facility and other Facilities.
* **MS/HSD Underground Tank Installation:**
* Public Sector OMCs provide and install Motor Spirit (MS) and High-Speed Diesel (HSD) underground tanks at 'A' site ROs.
* Installation by OMCs is prohibited before the execution of the land lease agreement with the landowner and Petroleum and Explosives Safety Organisation (PESO) approval of the layout plan.
* **Mineral Extraction:**
* Extraction of minor minerals is governed by the Mines and Minerals Development and Regulation Act, 1957 and related rules.
**Impact Analysis:**
**LOI Holders (Dealers):**
* *Impact:* Defines specific land development and facility provision responsibilities at 'A' category RO sites. Outlines the scope of works expected from the dealer which will be mentioned in the Letter of Intent issued to the dealer.
* *Action Required:* Comply with the outlined responsibilities for land development and facility provision as per OMC specifications and the Letter of Intent.
**Oil Marketing Companies (OMCs):**
* *Impact:* Clarifies responsibilities for providing and installing underground tanks, dispensing units, and other facilities. Stipulates procedures for tank installation and compliance with regulatory requirements.
* *Action Required:* Adhere to guidelines for tank installation, ensuring land lease agreements are in place and PESO approval is obtained. Oversee dealer compliance with land development and facility provision responsibilities.
**Landowners:**
* *Impact:* Outlines the necessity of a land lease agreement execution prior to the installation of underground tanks by OMCs.
* *Action Required:* Understand that OMCs cannot install MSHSD underground tanks before the execution of a land lease agreement and Petroleum and Explosive Safety Organization PESO approval.
**Petroleum and Explosives Safety Organisation (PESO):**
* *Impact:* PESO layout plan approval is required before installation of underground tanks.
* *Action Required:* Ensure compliance with layout plans for MSHSD underground tank installation.
Key Entities Referenced
Petroleum and Natural Gas: The ministry responsible for the subject matter of the question raised in the Lok Sabha.
Oil Marketing Companies (OMCs): Public and private sector companies involved in the marketing and distribution of petroleum products.
Letter of Intent (LOI): A document issued to prospective dealers outlining the terms and conditions for establishing a Retail Outlet.
Retail Outlet (RO): A petrol pump or gas station, the subject of the development guidelines.
Motor Spirit (MS): Gasoline or petrol, a fuel sold at Retail Outlets.
High Speed Diesel (HSD): Diesel fuel, another fuel sold at Retail Outlets.
Petroleum and Explosives Safety Organisation (PESO): The regulatory body responsible for safety in the petroleum and explosives sector in India. Approvals from PESO are required before installing underground tanks.
Mines and Minerals Development and Regulation Act, 1957: Indian legislation governing the extraction of minerals, relevant to the excavation activities at Retail Outlet sites.
LOK SABHA
UNSTARRED QUESTION NO.814
TO BE ANSWERED ON 24th July, 2025
Guidelines for Development of 'A' Category RO Sites
814. Smt. Smita Uday Wagh:
Shri Dhairyasheel Sambhajirao Mane:
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) the guidelines issued by the Oil Marketing Companies (OMCs) to Letter of Intent (LOI)
holders for development of ‘A’ category Retail Outlet (RO) sites including land development
for entry/exit, acceleration/deceleration lanes, service roads, boundary/retention walls, etc.;
(b) whether all such land developmental works are to be carried out by the LOI holder or
certain components are undertaken by the concerned OMC and if so, the details thereof;
(c) whether OMCs are permitted to install Motor Spirit (MS)/High Speed Diesel (HSD)
underground tanks at RO sites before signing the land lease agreement with the landowner
and prior to Petroleum and Explosives Safety Organisation (PESO) approval in the case of
'A' category RO site and if so, the details thereof;
(d) whether LOI holders are allowed to excavate large pits and extract minor minerals from
the RO site for levelling with highway/service roads and if so, the details thereof; and
(e) whether OMCs undertake tank pit excavation only after obtaining necessary approvals
and
if so, the details thereof?
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:373)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI SURESH GOPI)
(a) to (e) The Dealer Selection Guidelines (DSG) for Retail Outlets (ROs) of the Public
Sector Oil Marketing Companies (OMCs), inter-alia, prescribe the provisions for
development of RO which includes scope of work and facilities to be respectively provided
by Dealer and OMC at “A” site RO. As per DSG, Motor Spirit (MS) / High Speed Diesel
(HSD) underground tanks are provided and installed by Public Sector OMCs at `A’ site RO.
Besides, following facilities are to be made available by the Dealer (as specified by the
OMC) / OMC at the `A’ site RO :-TYPE OF SITE
Sl.
Type of Facility “A” / “CC” site
No.
Provision of Facility by:
A Infrastructural Facilities:
Developed land including land development of the
entry / exit / acceleration / de-acceleration / service
i. Dealer
road with boundary /compound / retention wall as per
OMC Specification
ii. Tanks, Dispensing Units, Signages, Automation, etc. OMC
Sales Office, Storeroom, Toilet, Electrical Room,
iii. Electrical connection (of capacity as advised by OMC), OMC
Water Connection, Yard Lighting, etc.
iv. Generator / Invertor Dealer
Compressor with Electronic Gauge for Air Filling (As
v. OMC / Dealer
decided by OMC)
vi. Driveway OMC
vii. Canopy (as per OMC’s requirement) OMC
B Customer Convenience Facilities:
Clean Drinking Water, Maintenance of Neat & Clean
i. Dealer
Toilet, Telephone, etc.
Site specific additional facilities required for customer service such as Staff cum Change
Room, Service Station, Rest Room, Restaurant, PUC facility and/other Facilities, as
specified by OMCs from time to time, are to be provided by OMCs. Dealer provides
Firefighting/Safety equipment at RO as per the statutory requirements.
The scope of works to be carried out by dealer is clearly mentioned in the Letter of Intent
issued to the dealer.
Letter of Intent is issued by PSU OMC for setting up of Retail Outlet only. The extraction of
minor minerals is governed by the Mines and Minerals (Development and Regulation) Act,
1957 and rules framed thereunder.
As per PSU OMCs’ prevailing guidelines and statutory requirements, MS/HSD underground
tanks cannot be installed at a RO site by PSU OMCs prior to the execution of the land lease
agreement with the landowner and without the approval of the layout plan by Petroleum and
Explosive Safety Organization (PESO).
****