HP Gas Agency Dealership Advertisement 2021: Eligibility, Investment

HP Gas Agency Dealership Application Form | HP Gas Agency Dealership Advertisement | HP Gas Agency Distributorship Investment

The procedure of creating an HP GAS Distributorship begins with the publication of an open announcement in newspapers announcing the locations where HPCL intends to open HP GAS agencies. Interested and eligible candidates who meet the indicated requirements must fill out an application form and submit it according to the instructions in the open advertisement. The applications are reviewed, interviews are held, and finally, the desired applicant is chosen. Read below to check the detailed information related to the HP Gas Agency Dealership Advertisement 2021 like Highlights, Objectives, Eligibility Criteria, Location Identification, Application Process, Application Fee, Selection Process, and much more.

HP Gas Agency Dealership Advertisement 2021

Under the brand name HP Gas, Hindustan Petroleum Corporation Limited is one of India’s largest LPG suppliers and has been selling LPG since 1979. HPCL (Hindustan Petroleum Corporation Limited) is a government-owned natural gas and oil business in India that distributes LPG for both home and industrial applications. under the brand name HP Gas, the Hindustan Petroleum Corporation Limited has been selling LPG since 1979. Customers can obtain an HP gas connection or request a refill by approaching their local HP Gas distributor or applying for one online. HP Gas serves over 85 million users through a vast network of over 6000 LPG distributors, ensuring a steady supply of LPG cylinders not just to homes but also to businesses and industrial operations.

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Highlights of HP Gas Agency Dealership Application Form

NameHP Gas Agency Dealership Advertisement 2021
Launched ByHindustan Petroleum Company Limited i.e., HPCL
BeneficiariesResidents of India
ObjectiveTo Publish HP Gas Agency Dealership Advertisement
Official Websitehttps://hindustanpetroleum.com/

Objectives of HP Gas Agency Dealership

It has a large dealer network all over the country. In Visakhapatnam, India, HPCL operates one of the largest LPG processing facilities on the Asian continent, as well as other LPG packaging factories across the country. HP Gas had over 33 million clients using their residential gas connection as of April 2011, spread throughout a network of 2,630 distributors. HP Gas has strong safety precautions in place throughout the production, packaging, and distribution of home gas because it is a government company. It is one of the country’s best domestic gas providers.

HP Gas Distributorship Eligibility Criteria

A person seeking to establish or hold a distributorship for HP gas must satisfy the following conditions, according to the government’s amended standards announced in 2016.

  • An applicant must be the domicile of India
  • A minimum qualification of 10th class or an equivalent degree from a recognized Board is necessary for distributorship.
  • If the applicant belongs to the Freedom Fighter category, he or she will not be entitled to this qualification.
  • A minimum of 21 years of age is required for the application.
  • A maximum of 60 years of age is eligible on the date the advertisement for the distributorship in the area was published.
  • if the area falls under the Freedom Fighter (FF) category, the age criteria will not apply. 
  • The applicant must also be mentally competent and able to handle the distributorship, according to the requirements. 
  • The candidate cannot be a family member of any OMC employee.
  • He/She must meet all of the requirements for a Multiple Dealership / Distributorship.
  • The applicants must not have been accused of any criminal charge involving moral turpitude or economic offenses by any court of law.
  • The candidate must own a patch of land that is at least the same size as the minimum dimensions necessary for the LPG go down’s construction.
  • These dimensions must match with the most recent criteria as of the last day for submitting a distributorship application.
  • According to the most recent guidelines in effect as of the last date of submission of the distributorship application, the applicant can also be the owner of ready storage space for LPG cylinders.
  • The approved candidate must be able to construct a godown quickly that will be utilized to store LPG cylinders and obtain all relevant permits from the Petroleum & Safety Organization (PESO) and other officials within the timeframe.
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Location Identification for HP Gas Agency Dealership

Locations for establishing an LPG distributorship are chosen based on the potential for refill sales, which can continue an LPG distributorship’s commercially feasible operation. The establishment of LPG distributorships in the specified places is a risky business venture that does not provide any guaranteed returns or profits. The feasibility analysis for establishing additional LPG distributorships will be based on the potential for refill sales. The possibility for refill sales while establishing an LPG distributorship is determined by the number of houses, per capita consumption, LPG coverage, and any current or proposed PNG connections.

Land Area Dimensions

The Land Area Dimensions are as follows:

  1. For Sheheri Vitrak and Rurban Vitrak:

The Minimum land dimensions for Sheheri Vitrak and Rurban Vitrak must be 25 Meter x 30 Meter.

  1. For Gramin Vitrak: 

The Minimum land dimensions for Gramin Vitrak must be 21 Meter x 26 Meter

  1. For Durgam Kshetriya Vitrak:

The Minimum land dimensions for Durgam Kshetriya Vitrak must be 15 Meter x 16 Meter

LandDimension
Sheheri Vitrak and Rurban Vitrak25 Meter x 30 Meter.
Gramin Vitrak:21 Meter x 26 Meter
Durgam Kshetriya Vitrak15 Meter x 16 Meter

How to Become a Distributor of HP LPG Gas

If you want to become a registered HP LPG Gas distributor, you can apply when HP Gas publishes an open advertisement in the newspapers. When demand arises, HP Gas will post a news release announcing the sites where the firm plans to open HP Gas Agencies. You may apply if you meet the eligibility requirements. The selection process will begin once all the application forms are submitted successfully. Interviews will be held after the applications have been thoroughly reviewed, and the best applicant will be chosen. Please visit the official HP Gas website to see the current list of HP Gas open advertising.

Only one application for each site should be submitted. If an individual submits more than one application, all of them will be combined and considered as one. All fees received against other applications will be lost in such instances.

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HP Gas Agency Dealership Application Process

The application process can begin after an advertisement is placed in the newspapers under the government’s rules. The advertisement must be placed in three newspapers in the state where the distributorship will be established. The advertisement will explain the location where HPCL plans to open new HP gas agencies, and suitable individuals will be able to apply for the positions. Based on the location of the agency to be established, distributorships can be categorized into the four categories below.

  • Shehri Vitrak 
  • Gramin Vitrak
  • Rurban Vitrak
  • Durgam Kshetriya Vitrak

Applicants need to follow the below-given points to apply for these agencies:

  • Applicants in the Shehri Vitrak category can submit their applications online.
  • The applicants for other categories i.e., Gramin Vitrak, Rurban Vitrak, and the Durgam Kshetriya Vitrak can download the application form from the website of HP Gas.
  • A single applicant can apply for distributorship in numerous locations.
  • Multiple applications for each site must be submitted separately and cannot be consolidated into one application.
  • The fees for each of these applications must be paid at the time of submission.
  • According to the requirements, each location must submit a single application, 
  • The applications will next be properly checked against the documentation submitted by the applicant, under the government’s verification process.
  • Each location’s distributorship will be assigned for 10 years at first.
  • This period can be extended in 5-year increments.
  • This extension will be based on the agency’s examination of the parameters set by HP Gas.
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Application Forms form more than one Location.

An applicant may also register for multiple positions. In such circumstances, the applicant needs to file a separate application form for each location. The required application fee should be included with each application form.

Check the HP Gas Agency Dealership Online

To check the HP Gas Agency Dealership Advertisement 2021 online, the applicant needs to follow the below-given steps:

HP Gas Agency Dealership
Apply Online
  • The business opportunities page will open on the screen with different options like:
    • Retail (Petrol Pump Dealership)
    • Gas (LPG Distributors)
    • Lubricants Advertisement
    • Direct Sales Advertisements
  • Select the HP Gas (LPG Distributors) option and click on the link.
  • Once you click on the link, the HP Gas Agency Dealership Advertisement 2021 will open on the screen.

Application Fee

The Application Fee for the HP Gas Agency Dealership Application Form for various categories is given in the table below. The application fee is a non-refundable amount

Application Fee Forfor Open category,for OBC Categoryfor SC / ST Category
Sheheri Vitrak and Rurban VitrakRs. 10,000 / –Rs. 5,000 / –Rs. 3,000 / –
Gramin Vitrak Rs. 8,000 / –Rs. 4,000 / –Rs. 2,500 / –
Durgam Kshetriya VitrakRs. 8,000 / –Rs. 4,000 / –Rs. 2,500 / –

Selection Process for HP Gas Agency Dealership

The Selection Procedure for HP Gas Agency Dealership are given below:

  • The LPG distributor will be selected by Draw of a lot from among all eligible individuals.
  • There is no need for a draw if there is just one eligible application for a given location.
  • The draw of lots for Rurban, Gramin, and Durgam Kshetriya Vitrak locations will be done by hand.
  • The draw of lots for Sheheri Vitrak locations will be done using a random number generator on the web page.
  • Out of all eligible applicants who are inhabitants of the Gram Panchayat of the advertised area, the Durgam Kshetriya Vitrak shall be drawn first.
  • Selected applicants in the Draw of Lots will be required to submit a Demand Draft in the amount of 10% of the security deposit, as applicable to various types and categories of LPG distributorships, within 7 working days of receiving a letter from the OMC’s concerned office in this reference.
  • If a Sheheri Vitrak site is announced, the successful candidate will have the option of paying the fee via an online platform.
  • If the selected applicant fails to deposit the required amount within 7 working days of the Draw of Lots, his or her candidature will be terminated.

Demand Draft Amount 

The Demand Draft amount that is to be submitted after selection for various categories is given in the table below:


Type of Distributorship
OpenOBCSC / ST
Sheheri Vitrak / Rurban Vitrak50,00040,00030,000
Gramin Vitrak / Durgam Kshetriya Vitrak40,00030,00020,000


Essential Facilities for LPG Distributionship Operation

Some of the Essential Facilities for LPG Distribution ship Operation are as follows:

  • Within the time frame specified in the LOI, the selected applicant will establish or provide a quickly constructed LPG godown to store LPG of specified capacity and obtain relevant permissions from statutory organizations, including the Petroleum & Safety Organization (PESO).
  • The chosen applicant must provide an all-weather motorable approach road (public or private road linking to a public road) with a minimum width of 2.5 meters to provide LPG Cylinder Trucks access to the offered site for LPG Godown. If a private road connects to a public road, it must be purchased, leased, or have a right of way from the landowner(s). Where the state government specifies a larger approach road, the applicant must provide it.
  • At the time of acceptance of the LOI, the preferred candidate must submit an undertaking that the Approach Road will be built in the timeframe indicated in the LOI. Before the Letter of Appointment is issued, the Approach Road will be checked for suitability. Upon commissioning of the LPG distributorship, it would be the responsibility of the selected applicant to assure that the LPG cylinder truck had unrestricted access to this prime location to the LPG Godown at all times. If the chosen candidate fails to make the approach road available, the LOI will be revoked, and the ten percent security deposit would be lost.

Responsibilities of Selected Applicants

Once the applicant is selected for the HP Gas Agency Dealership, the applicant has to handle the following responsibilities:

  • The applicant chosen for the distributorship will be responsible for running the LPG Distributorship on their own. 
  • He or she will be ineligible to work in any other profession. 
  • If the nominated person is currently employed, he or she must quit and provide the employer with a letter of acceptance of resignation before the PSU Oil Marketing Company issues a Letter of Appointment (LOA). 
  • Before the OMC issues the LOA, the selected candidate must additionally submit a Notarized Affidavit stating that he or she is not engaged in the private sector and does not receive any pay, perks, or emoluments from the state, central government, or PSU.

Scheme of Financial Assistance for Distributionship of the SC/ST Category

The Financial Assistance Scheme is available to the Selected Applicant for the area reserved for the SC/ST category, as shown below.

  • Oil Marketing Companies (OMCs) will assist the SC/ST applicant in getting a loan from a scheduled commercial bank to provide the LPG Godown, Showroom, and LPG cylinder distribution infrastructure. 
  • If the banks ask the applicants to invest any margin money to provide the above-mentioned facilities, OMCs will provide financial help in the form of a secured loan to cover the margin money.
  • The margin money will be limited to Rs. 1 lakh for urban market distributorships and Rs. 0.60 lakh for urban-rural and rural market distributorships, or 20% of the total project cost against which the bank has sanctioned the loan, whichever is lower.
  • The margin money will be limited to Rs. 1 lakh for urban market distributorships and Rs. 0.60 lakh for urban-rural and rural market distributorships.
  • Distributorships earmarked for SC/ST categories will receive a secured loan for margin money at an annual interest rate of (SBI PLR + 1%). 
  • This loan, as well as the interest, will be repaid with 20% of the distributor’s fee. 
  • A sufficient working capital loan at (SBI PLR + 1%) interest per annum will also be granted for the distributorship’s whole operation cycle.

HP Gas Agency Dealership Security Deposit

Various categories have different requirements for security deposit amounts. Check the below-given table for the security deposit amounts:

Type of DistributorshipOpenOBCSC / ST
Sheheri Vitrak / Rurban Vitrak5,00,0004,00,0003,00,000
Gramin Vitrak / Durgam Kshetriya Vitrak4,00,0003,00,0002,00,000

Contact Details: 

For any queries or details which you want to know regarding HP Gas Agency Dealership Advertisement 2021 feel free to contact us on the below-given details: 

  1. Registered Office & Corporate Headquarters:

Address: 

  • Hindustan Petroleum Corporation Limited.
  • Petroleum House, 17, 
  • Jamshedji Tata Road, Mumbai 400020,
  • Maharashtra, India.
  • Email Id: corphqo@hpcl.in
  1. Marketing Headquarters Address: 

Address: 

  • Hindustan Petroleum Corporation Limited.
  • Hindustan Bhawan, 8,
  • Shoorji Vallabhdas Marg, 
  • Ballard Estate, 
  • Mumbai 400001, 
  • Maharashtra, India
  • Email Id: mktghqo@hpcl.in