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Modi government revamps law governing Petrol pumps,Non-sector companies will now be permitted to Operate pumps

Union government had made big revamp in the laws governing the issuance and operations of Petrol pumps in the nation. The government had scrapped a law that prevented companies outside the petroleum sector to have a license to operate pumps.

Union minister of information and broadcasting Prakash Javedkar announced on Wednesday this major policy change after a cabinet meeting. He claimed the policy change will trigger a healthy trade competition with the investment of non-sector companies incurring in the business. The scrapped law which governed the closed sector of Petroleum, enforced a minimum initial investment of 2000 Crore rupees for companies to acquire a license for operating Petroleum or Hydrocarbon research, LPG refill terminals and to operate refineries.

Speaking to reporters Prakash Javedkar informed that CCEA -the finance committee of Cabinet ministry had passed the directives for the issuance of distribution license to non-sector companies for Petroleum and LPG refueling pumps. The new directive envisages a net worth of 250 Crore rupees for non-sector companies to operate Petrol pumps. The directive also demands a minimum of 5 % of petrol pumps should be operated in rural areas.


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