Wednesday November 20, 2019
Home Business Centre Opens ...

Centre Opens up Fuel Retail Policy by Allowing All Companies to Enter Fuel Retail Segment

It will also allow corporares running convenience stores, shopping malls and hypermarkets to sell fuel as is the case in developed countries such as the US

0
//
Fuel, Retail, Companies
The development is expected to usher in investments from global giants such as Aramco, Total, Trafigura and other foreign players. Pixabay

The Centre on Wednesday liberalised its fuel retail policy by allowing all companies to enter the fuel retail segment.

Till now only companies with hydrocarbon experience and having committed investment of Rs 2,000 crore in India’s oil and gas sector were allowed to enter the fuel retail segment. Now, any corporate entity with a net worth of just Rs 250 crore can get fuel marketing rights.

The development is expected to usher in investments from global giants such as Aramco, Total, Trafigura and other foreign players. It will also allow corporares running convenience stores, shopping malls and hypermarkets to sell fuel as is the case in developed countries such as the US and UK.

“It (policy) has now been revised to bring it in line with the changing market dynamics and with a view to encouraging investment from private players, including foreign players, in this sector,” the CCEA said in a statement.

Fuel, Retail, Companies
Till now only companies with hydrocarbon experience and having committed investment of Rs 2,000 crore in India’s oil and gas sector were allowed to enter the fuel retail segment. Pixabay

“The new policy will give a fillip to “Ease of Doing Business”, with transparent policy guidelines. It will boost direct and indirect employment in the sector. Setting up of more retail outlets (ROs) will result in better competition and better services for consumers.”

Consequently, the entities seeking authorisation would need to have a minimum net worth of Rs 250 crore vis-A-vis the current requirement of Rs 2,000 crore prior investment.

Even the requirement of prior investment in oil and gas sector, mainly in exploration and production, refining, pipelines or terminals have been done away with, thereby inviting non-oil companies to also invest in the retail sector.

The fuel under consideration of the revised policy includes petroleum, diesel, LNG and CNG.

Also Read- NASA Failed to Trace Chandrayaan 2’s Vikram Lander on Lunar Surface

“In addition to conventional fuels, the authorized entities are required to install facilities for marketing at least one new generation alternate fuel, like CNG, LNG, biofuels, electric charging, etc. at their proposed retail outlets within 3 years of operationalization of the said outlet,” the statement said.

“More private players, including foreign players, are expected to invest in retail fuel marketing leading to better competition and better services for consumers.”

As per the statement, entities would be required to set up minimum 5 per cent of the total retail outlets in the notified remote areas within five years of grant of authorisation.

“A robust monitoring mechanism has been set up to monitor this obligation,” the statement said.

Fuel, Retail, Companies
Now, any corporate entity with a net worth of just Rs 250 crore can get fuel marketing rights. Pixabay

“An individual may be allowed to obtain dealership of more than one marketing company in case of open dealerships of PSU OMCs but at different sites.”

The current policy for granting authorisation to market transportation fuels had not undergone any changes for the last 17 years since 2002.

Meanwhile, several overseas companies had explored the potential but no investment has been made so far.

India has emerged as a key driver of global oil demand. The International Energy Agency (IEA) expects the country to account for a quarter of global energy use by 2040.

Also Read- Club Factory App Becomes Most Installed App on Google Play Store

Companies, including Reliance Industries, RoyalDutch Shell and Nayara Energy, part owned by Russian oil major Rosneft account for about 10 per cent of the 64,625 fuel stations in the country, according to data posted on the Petroleum Planning and Analysis Cell (PPAC). (IANS)

Next Story

Drug Companies Reach $215 Million Settlement to Avoid Trial over their Role in Deadly Opioid Addiction Crisis

The case has been viewed as a harbinger for similar lawsuits filed by more than 2,700 local and state governments across the country in hopes

0
Drug, Companies, Opioid
Summit county executive Ilene Shapiro speaks to the media outside the U.S. Federal courthouse, Oct. 21, 2019, in Cleveland. VOA

A major pharmaceutical company and three of the biggest drug distributors in the U.S. have reached a $260 million settlement with two counties in Ohio to avoid a trial over their role in the deadly opioid addiction crisis gripping America.

The deal, struck Monday, came just hours before the opening arguments in a court in Cleveland, Ohio. The case has been viewed as a harbinger for similar lawsuits filed by more than  2,700 local and state governments across the country in hopes of recouping damages from the crisis.

Drug distributors McKesson, Cardinal Health and AmerisourceBergen will pay $215 million in reparations. Israeli drug manufacturer Teva will pay $20 million in cash and also contribute $25 million worth of Suboxone, used to treat opioid addiction.

“People can’t lose sight of the fact that the counties got a very good deal for themselves, but we also set an important national benchmark for the others,” said Hunter Shkolnik, a lawyer for Cuyahoga County.

Drug, Companies, Opioid
The deal, struck Monday, came just hours before the opening arguments in a court in Cleveland, Ohio. Pixabay

Cuyahoga and Summit counties had brought the lawsuit that accused the four companies of fueling a nationwide opioid crisis.

According to U.S. government data, opioids have led to some 400,000 overdose deaths between 1997 and 2017.

Lawyers say the settlement will provide local governments with the finances needed to establish opioid-recovery programs.

Also Read- Sony Unveils its New Premium Compact Camera in India

Attempts to reach a nationwide settlement broke down last week after cities and counties suing the drug companies rejected an offer of $48 billion in cash, treatment drugs and services. (VOA)