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.