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Govt. plans to allow private players in fuel retailing sector

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The Government of India has set up a committee to review the guidelines for the fuel retailing sector, which could ease the entry of more private multinational companies.

According to a media report, the committee will be reviewing the existing framework of private sector participation in retail marketing and identifying the hurdles that might prevent private entities from expanding their business. Companies are required to have a basic infrastructure investment of about Rs. 20 billion or have to provide bank guarantees of an equivalent amount to enter the retail business.

Existing norms could be eased to facilitate the entry of companies like Total SA of France. Currently, out of the 56,999 fuel outlets in India, 6,276 are privately owned. The major private players are Nayara Energy (4,756 outlets), Reliance Industries and Shell.

The government may also consider marketing models like selling petrol and diesel at supermarkets, similar to what is popular in the UK and France.

Reports suggest that the committee will be discussing the matter with various stakeholders and is likely to submit its report within 2 months.

Source: Business Standard

 
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