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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

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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.

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“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.

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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

OnePlus Plans To Bring Premium Technology for Offline Users in India

The company is also mulling to inaugurate its largest and one-of-its-kind Experience Centre, spanning 16,000 sq ft, in Hyderabad soon

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OnePlus
This comes at a time when OnePlus is experiencing stiff competition from Apple, which has witnessed a turnaround in the highly-competitive premium smartphone market with an increased market share. Pixabay

Aiming to cement its position in the highly-congested premium smartphone market in India, Shenzhen-headquartered handset maker OnePlus is working towards bringing premium technology to more offline users in the country in 2020, a top company executive has said.

OnePlus continued to lead the premium smartphone market in India in Q3 (July-September period) last year, according to Counterpoint Research. The company, with 35 per cent market share, grew 95 per cent year-over-year (YoY).

“In 2020, we plan to scale up investments in the offline retail space and bring premium technology to more consumers who are primarily offline-based through our OnePlus Experience Centres and retail partnerships,” Vikas Agarwal, General Manager, OnePlus India, told IANS in an interview.

This comes at a time when OnePlus is experiencing stiff competition from Apple, which has witnessed a turnaround in the highly-competitive premium smartphone market with an increased market share.

According to the International Data Corporation (IDC), Apple garnered 51.3 per cent share in the Rs 35,000 and above price segment in Q3 of 2019 that ended on September 30.

According to Agarwal, “Expansion of retail presence is one of our key focus areas this year.”

OnePlus
Aiming to cement its position in the highly-congested premium smartphone market in India, Shenzhen-headquartered handset maker OnePlus is working towards bringing premium technology to more offline users in the country in 2020, a top company executive has said. Wikimedia Commons

The company is investing heavily in creating premium service experiences for customers so that every touchpoint with the brand is a remarkable experience for its users.

“The plan is to have at least over 5,000 stores across India in 2020. We are already working to open 100 new ‘Experience Centres’ in the country’s top 50 cities this year,” the OnePlus executive informed.

In terms of offline presence, the company has collaborated with large-format retail chains including Croma, Reliance Digital, Vijay Sales, Bajaj Electronics, Poorvika Mobiles and Sangeetha Mobiles.

It currently has presence in over 2,000 retail stores.

“We will continue to expand our partnerships so that our community and OnePlus enthusiasts can walk into their nearest electronic store to experience our latest products,” added Agarwal.

The company is also mulling to inaugurate its largest and one-of-its-kind Experience Centre, spanning 16,000 sq ft, in Hyderabad soon.

Asked if OnePlus also wants to bring its concept phone with colour-shifting glass technology that makes the rear camera “invisible” to India, Agarwal said: “The OnePlus Concept One phone and its camera setup are an innovative experiment in the future of smartphone design, and OnePlus’s R&D and product teams are continuing to test and extend this technology.

“A new technology application requires valuable user and market feedback, and when the time is ripe, we will introduce it to the market.”

OnePlus
OnePlus continued to lead the premium smartphone market in India in Q3 (July-September period) last year, according to Counterpoint Research. The company, with 35 per cent market share, grew 95 per cent year-over-year (YoY). Pixabay

The handset maker unveiled the OnePlus Concept One at the CES 2020 in Las Vegas.

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Concept One is an exploration into the future form of smartphones (including camera layouts and exterior form) and ECMF (electronics’ colour, materials and finishing), and offers a breakthrough solution to the growing problem of unsightly protruding camera designs. (IANS)