OUTLET AUCTION - 27% OBC quota in petrol pumps

OUTLET AUCTION - 27% OBC quota in petrol pumps



The oil ministry has for the first time implemented a 27% quota for OBCs (other backward castes) in allotment of petrol pumps, even as it has decided to auction outlets on `premium sites' and distribute others through lottery to ensure transparency .

The latest round of reforms by Dharmendra Pradhan's ministry displays a blend of welfare politics and commercial sense. The reservation will impact power equations in rural areas, while the auction will help maximize revenue and attract serious players.

The OBC quota will also apply in allotment of cooking gas dealerships. Over the last 2-3 months, state-run fuel retailers have advertised 35,668 locations to set up petrol pumps and 7,000 cooking gas dealerships, both under regular and low-cost rural categories.

The allotment policy also provides for 22.5% reservation for Scheduled CastesTribes.After the OBC quota, the general category will fall to 49.5%.Reservation for groups like sportsmen, former defence personnel and families of martyrs will be accommodated under the three categories.

UPA had decided on the quota in July 2012 but it remained unimplemented. There are more than 40,000 petrol pumps in the country .

The ministry has now asked fuel retailers to auction outlets on `A sites' -pumps where the retailers spend a minimum of Rs 50-60 lakh to set up all infrastructure and facilities, even purchase or lease land. The dealer is then chosen to operate the pumps.

Sources said the suggestion for introducing the auction method came from Pradhan during a marketing review meeting with oil company executives. “Why should companies spend money for dealers?

Let those who mean business bid for a pump,“ an executive from one of the companies quoted the minister as saying.

The `A sites' will have a reserve price of Rs 30-35 lakh, depending upon the location.

Sources @http://epaperbeta.timesofindia.com/Article.aspx?eid=31812&articlexml=OUTLET-AUCTION-27-OBC-quota-in-petrol-pumps-10122014014035