Do you want to start an Indian Oil Corporation dealership business in your area? Do you want to know about the dealership advertisement, investment, application process, cost, profit, contact details, etc? If YES, you are in the right place. Here in this post, you will find a complete guide with every supporting detail for opening the business.
Actually, IOCL stands for Indian Oil Corporation Limited. It is commonly popular as Indian Oil. IOCL is an Indian state-owned oil and gas company with a registered office in Mumbai and primarily headquartered in New Delhi.
Also, it is the largest commercial oil company in the country. The company produces a wide range of petroleum products including crude oil, natural gas, and petrochemicals. IOCL has two state-owned domestic competitors like Bharat Petroleum and Hindustan Petroleum and two major private competitors include Reliance Industries and Essar Oil.
IOCL offers dealerships in the name & style of RO. RO stands for the retail outlet. And definitely, it’s for the petrol pump. Also, the company offers dealership opportunities for the domestic cooking gas supply.
Here are the Steps to Open the Indian Oil Corporation Pump Business
Indian Oil Corporation Dealership Guidelines
Generally, IOCL carries out the dealer selection process through a transparent system of the draw of lots/bidding process. The salient features of the new selection guidelines are:
(i) As per the eligibility criteria, an applicant has to meet the minimum requirements on the availability of suitable land, age, educational qualification, and finance. However, for Location under SC/ST category i.e. Corpus fund locations, Finance is not an eligibility criterion.
(ii) There is neither marks-based evaluation nor an interview for selection.
(iii) All applicants meeting the eligibility criteria will qualify for the further selection process.
(iv) The different selection processes for Corporation Owned Dealer Operated outlets, Dealer Owned Dealer Operated outlets, and Corporation Owned outlets under Corpus Fund Scheme.
How to Identify the Location for Indian Oil Corporation Dealership
Generally, IOCL does identify the locations for setting up Retail Outlets based on commercial/minimum volume considerations. Accordingly, Regular / Rural outlets are set up by the Oil Companies as under:-
Regular ROs: Locations on Highways (NH/SH) and Urban/Semi-Urban areas
Rural ROs: Locations in Rural areas but not on Highways (NH/SH)
Type of Retail Outlet Sites Eligible for Indian Oil Corporation Dealership
|Type of Site||Status of Land & Facilities|
|Locations under Corpus Fund Scheme (CFS sites)||The offered land would be taken on lease/purchased and fully developed as a Corporation-owned site|
|Other Corporation Owned Sites (“A”/ “CC” sites)||The offered land would be taken on lease/purchased and fully developed as a Corporation-owned site.|
|Company Leased||The offered land along with the superstructure developed by the dealer is taken on lease by Corporation.|
|Dealer Owned sites (“B”, “DC” sites)||The offered land and the superstructure will be developed by the dealer. Pump, tank, automation, signages, etc. will be provided by the Corporation.|
Indian Oil Corporation Dealership Eligibility Criteria
(ii) Residential status:
Regular ROs: Resident of India (as per Income tax rules1) as on the date of the affidavit.
Rural ROs: Resident of India (as per Income tax rules1) as on the date of the affidavit.
Not less than 21 years and not more than 55 years (as on date of affidavit) except for Freedom Fighter under the CC2 category. Also, you must submit the proof of age with a copy of the 10th Standard Board Certificate /Secondary School Leaving Certificate / Birth Certificate / Passport / Affidavit for age /
Identity card issued by Election Commission.
(iv) Educational qualification:
For educational qualification from overseas universities/boards, applicants must attach an equivalent certificate issued by a competent authority / State Government / Government of India.
a) In respect of applicants belonging to CC1 & CC2 categories:-
For Rural ROs: Passed Minimum 10th (examination conducted by a Board/School).
For Regular ROs: Passed Minimum 10+2 level of the examination conducted by a Board/University.
b) In respect of applicants belonging to other categories:-
For Rural ROs: Passed Minimum 10+2 level of the examination conducted by a Board/University.
For Regular ROs: Have a minimum of any one of the following educational qualifications awarded by any of the universities incorporated by an Act of the Central or State Legislature in India or any other educational institution established by an Act of Parliament or declared to be deemed as a University under UGC Act 1956, or possess an equivalent qualification recognized by the Ministry of HRD, Govt. Of India.
- Graduation in any field
- Chartered Accountant
- Company Secretary
- Cost Accountant
- Diploma in Engineering
However, freedom fighters under the CC2 category don’t need to have any Minimum Educational Qualification.
For Regular ROs, you must have the fund requirement for eligibility of Rs. 25 lakhs and in respect
of Rural ROs, the fund requirement for eligibility is Rs. 12 lakhs. The funds can be
in the following forms:-
- Funds in savings accounts, Deposits with Bank/Registered Companies/Postal Schemes: You must provide a copy of the Passbook/account statement/deposit receipts.
- National Savings Certificates, etc: You must provide the Redemption value – Valuation certificates
along with a copy of NSC.
- Bonds: Redemption value: You must provide the Valuation Certificates along with a copy of the bonds.
- Shares of listed Companies in Demat form: Valuation certificates along with a copy of Demat statement to be provided.
- Mutual Funds: You must provide valuation certificates along with a copy of mutual fund certificates or Demat statements.
The company may hold all valuation certificates for the assets for any date after the date of the advertisement. The IOCL will obtain the valuation certificate either from a Chartered Accountant or Depository Participant, as applicable. Additionally, the company will consider only 60% of the certified value (for Shares, Mutual funds & Bonds) for the purpose of eligibility.
(vi) Land (Applicable to all categories):
The company classifies all applicants into two groups based on the offered land in the application form:-
Group 1: Applicants having a suitable piece of land in the advertised location/area either by way of ownership / long-term lease for a period of minimum __ years (as advertised by the Oil Company).
Group 2: Applicants having a Firm Offer for a suitable piece of land for purchase or long
term lease for a period of minimum __ years( as advertised by the concerned Oil Company).
(vii) Specific Requirements of applicants applying under Partnership:
In the case of a partnership, each partner should individually meet the parameters on Age and Education for applying as an individual. The company will treat the land and finance owned by the partner(s) as owned by the proposed firm as a whole for the purpose of eligibility.
Each partner should submit a separate application form along with a separate non-refundable application fee. However, the applications should be clubbed together. They also have to submit a copy of the proposed partnership deed along with the application.
However, the applicant should submit only one Financial bid and Initial Down Payment (IDP) for their application.
Basic Facilities Required for Operation of RO Dealership
First of all, you will need to provide developed land with a boundary or compound wall. You need to install Tanks, Dispensing Units, Signages, Automation, etc. The premise must have a sales office, storeroom, toilet, electrical room, water connection, yard lighting, etc.
For providing uninterrupted service, you must have a generator or UPS facility. For customer’s convenience, you will need to arrange clean drinking water, maintain of neat & clean toilet, telephone, etc.
Indian Oil Corporation Dealership Advertisement
Generally, IOCl invites applications through advertisements under the appropriate category in two newspapers. Interested applicants may apply by filling up their application form.
The advertisement will specify the last date and time on or before which the application should reach the designated office of the Corporation. The IOCL mentions the cut-off date in the advertisement. The applicants should ensure that their applications reach the designated office of the Corporation before the cut-off date and time mentioned in the advertisement.
If you are applying online, the last date for filing the application will remain the same. Further, you will get 7 days’ additional time only for submission of a hard copy of the online application with signature and copies of relevant documents at the designated office of OMC.
Indian Oil Dealership Application Form for Petrol Pump
For applying to the dealership, you must apply in a specific application form. The form is available on the official website of IOCL https://www.iocl.com/. Also, you can submit the application online.
The prospective applicant can fill up the online application form, take a printout of the filled-in application form on plain paper, affix the photograph, sign and attach the relevant documents, and should submit it.
Also, you must submit the same along with the Non-refundable application fee and IDP, if applicable, by separate Demand Drafts/Pay Orders drawn on any Scheduled Bank so as to reach the concerned office as mentioned in the advertisement.
We hope, this detailed article about Indian Oil Corporation Dealership will help you in getting into the business properly
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.