Selling gasoline at petrol pumps has been regarded as one of the most lucrative industries in India and internationally. The transportation and logistics sector’s constant growth and ensuing demands along with increasing demands of the average person’s daily commute are another apparent factors. Owning is nearly a must for a middle-class individual to secure his comfort and convenience in daily life.
As a result, starting your own gas station business is a viable alternative in the modern world. Although it necessitates a significant amount of paperwork and legal duties, it still ranks among the most lucrative industries in India. Also, the Oil Marketing Companies (OMCs) want to provide more viable chances to support the expansion of the gas station industry in India in 2020 and 2021.
Qualifications for Establishing Petrol Pumps in India
Before someone may begin the process of opening a gas station in India, the Indian government has put up several requirements that must be satisfied:
- The proprietor(s) of the gas station enterprise must be Indian citizens. An NRI applicant must have spent more than 182 days living in India.
- The applicant’s age must be at least 21 years old and should it be at most 55 years old.
- You must provide documentation of your birth.
- The minimum educational requirement for someone living in a rural location is a 10+2 certification. And for people who live in cities, the required level of education should be a university degree from an institution that has received UGC recognition. A 10th-grade diploma is necessary for applicants in the CC1 category, while a 10 + 2 diploma is required for applicants in the CC2 category.
- The rules do not apply to applicants who fall within the freedom fighters category.
- Obtaining a petrol pump cost in India in rural areas requires a minimum investment of Rs 15 lakh or higher.
- To get a dealership in a city, you need to invest at least Rs 2 crore, and a petrol pumps license costs1000.
- The site for the business shouldn’t be in an area that is restricted or prohibited.
Investing and Charges
You need a solid initial investment for petrol pump to start a gas station business. In India, there are two different investment in petrol pump:
- However, the petrol pump dealership cost may differ from company to company. Petrol pump opening cost Rs 12 lakhs for ROs in rural areas and Rs 25 lakhs for ROs in metropolitan areas.
- Your funds will be accepted via the following payment methods:
- Certificates of Savings National
- Bonds
- Demat Form Shares of Listed Companies
- A mutual fund
- Savings in an account
- Deposits in banks
- Investments in this firm will not be accepted in the form of cash, jewellery, or current account balance.
Get a Business Loan for Your Working Capital Requirements
Banks, NBFCs, and internet NBFCs like Lendingkart, the current trend, all offer loans for gas station purchases. Moreover, Lendingkart provides the following:
- Loans between Rs. 50,000 and Rs. 2 crores
- Speedy processing
- A maximum three-year repayment period
- Flexibility in repayment schedules in instalments
- Quick payment
- Low rates of interest
The next step is to apply for a license to open a gas station. Oil Marketing Companies (OMCs) advertise the installation of gas stations in various places on their official website or in the media. Potential candidates must:
Petrol pump license cost need to Purchase a form for Rs. 100 (rural areas) or Rs. 1000 (urban areas) online, fill it out correctly with the correct information (personal ID, grade records, land information, etc.), and upload the necessary paperwork to the website of the oil company of your choice.
Conclusion
Launching a new petrol pumps business requires a minimum of Rs 15-20 Lakhs. Many large gas station dealers often publicise their availability. In such cases, a direct application should be submitted along with the necessary paperwork, a GSTIN number, and the applicable costs.
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