Government has relaxed norms for setting up petrol pumps

25 October 2019 Current Affairs: The Central Government has relaxed norms for setting up petrol pumps allowingnon-oil companies to get into the business. The Cabinet Committee on Economic Affairs (CCEA) approved the Review of Guidelines for Granting Authorization to market Transportation Fuels. The announcement was made by the Union Minister of Information and Broadcasting Prakash Javadekar. 

Aim:

The move aims to help private and foreign firms to enter the fuel retailing sector. It is expected that the new policy introduced by government will bring in more investment and increase the ease of doing business. It will also boost direct and indirect employment in the sector.

Relaxation norm:

1) As per the relaxed norms, a net worth of Rs.250 crore will be allowed to sell petrol and diesel. 

2) The companies should install facilities for marketing at least one new generation alternate fuel such as biofuels, Compressed natural gas (CNG), Liquefied natural gas (LNG),  or electric vehicle charging within three years of the start of operations.

3) The retailers must set up 5% of the total outlets in rural areas within five years.