
In an effort to break the deadlock on the new norms for retail outlets on the highways, the petroleum ministry and the ministry of surface transport would meet shortly to draft the new guidelines. The oil companies had been told to submit their suggestions on the revised norms which were circulated by the surface transport ministry to the petroleum ministry.
These guidelines are expected to come in tandem with the guidelines for the new retail outlets of the PSU oil firms. The two set of guidelines would be instrumental in opening up the bottleneck for the PSU oil firms in their retail expansion plans, mainly that for IOC which has plans to invest Rs 1,000 crore for new retail outlets. The company also plans to invest Rs 500 crore for renovating the existing outlets.
According to top officials in the petroleum ministry, both the guidelines are in the final stages. After the earlier proposed norms for outlets on the highways, the oil companies had raised objections stating that it would be difficult for them to implement a host of proposals including that of keeping the specified distance of the outlets from the highways, parking space, service lanes and other restrictions. Based on the objections raised by the oil companies, the ministry of surface transport reconsidered the proposals and drafted a revised norm.
The oil companies are on the verge of putting in their suggestions and then the two ministries are expected to meet this month to finalise the norms. The oil companies have also sent in their draft guidelines for the new outlets and the petroleum ministry is also finalising those details. The main consideration of the guidelines for the new outlets would be to make the oil PSUs competitive, ministry officials said. The oil companies are not being able to go ahead with their expansion plans on retail outlets since the guidelines for the new outlets are still to be worked out. With the entry of private players in marketing, oil PSUs need to beef up their retail outlets, sources said.




