Guidelines for setting up of Dealer Owned Dealer Operated CNG stations

On the Sidelines of the Petrotech 2019, the Union Minister for Petroleum and Natural Gas, Shri Dharmendra Pradhan released the guidelines for setting up of Dealer Owned Dealer Operated (DODO) CNG stations in India.
The City Gas Distribution (CGD) entities run by central public sector undertakings will execute these guidelines for the setting up of CNG stations on DODO model in the country.

New Guidelines

The features of these new guidelines are:

• Initially, these guidelines would be implemented in over 150 districts of the country.
• Entire plot owned by a private owner shall be developed exclusively for setting up of CNG station and allied commercial activities at the discretion of CGD entity.
• The plot owner applicant desirous of setting up CNG station will have to enter into a long term agreement with CGD entity.
• The CNG equipment (compressor/ cascade/ dispenser, etc.) will be installed and commissioned by CGD entity while adhering to all the statutory rules/guidelines related to fire and safety.
• The dealer is required to arrange all the permissions to set up CNG Station including change of land use, necessary clearance, license, etc. at own expense and cost.
• The dealer shall be paid commission by the concerned CGD entity as per the sales achieved based on the fixed dealer commission.

Objectives of the New Guidelines

The new guidelines will act as an advisory for bringing the uniform system in line with DODO policy which will further help in bringing hygiene and cleanliness in the environment.
The guidelines aim to encourage those with possession of land to join hands with CGD entities in their endeavour to provide clean fuel for the transport sector.
Together with reducing the cost of setting up CNG filling stations for CGD entities the guidelines will provide landowners and investors to become partners in this green drive.
The new guidelines are expected to give a fillip to the CNG business in the country as the easy availability of CNG across the country shall encourage more people to switch to eco-friendly and economical CNG.

Month: Current Affairs - February, 2019