How to open a biofuel station in your city

Looking for the procedure to start a bio fuel filling station in your area? Read this article to know eligibility requirements and application procedures to start a profitable petrol pump.

As we progressed and developed with the advancement of technology, we also ruined nature and exploited its resources to their fullest. But soon we realized the realism and apprehended the necessity and importance of biofuels. Biofuel is a renewable resource of energy obtained from natural material. It can be called renewable fuel which can be used instead of non-renewable fuels, like petroleum.
Long-headed people are adopting biofuels extensively, and thus the business of biofuel stations is expanding day after day. That's why industrious people having sufficient resources are considering opening a new business of biofuel pump.

Eligibility requirements

Now, the question arises- 'Who can apply for biodiesel pump agency?'. The eligibility criteria may apply from company to company. However, the applicant must fulfil the following criteria-
  • An Indian citizen.
  • Minimum age- 21 years.
  • Entrepreneurial skills and/ or experience.
  • Good location of land for a fuel station.
  • Stable financial condition.

How to get a biofuel pump dealership in India

A biofuel filling station provides alternative fuels for sale namely biodiesel (B3), Gasohol (E25), neat Ethanol (E100) or CNG. Owing a piece of land is not sufficient to get the agency. You must fulfil various other prerequisites to start your own petrol pump station.

  1. Basic facility cost amounts to Rs. 23,00,000 to Rs. 25,00,000. This cost includes consulting charges for a site visit, service map, registration, distributorship charges, pipeline, fitting board and lighting charges, storage tank, fuel dispensing machines, security amount (refundable and interest-free) and working capital.
  2. Optional facilities include watercooler, toilet, computer, furniture, machine canopy, generator etc.
  3. The minimum area required is 120 x 120 ft. (approx.) on road.
  4. Complete property documents for commercial use are required.
  5. PAN card and GST number of the firm.
  6. Copy of PAN card and Aadhar card of the owner.
  7. The current bank account of the firm.
  8. Two passport size photographs of the owner.
  9. Triple face electricity connection.
  10. Sufficient supply of water.
  11. In the case of a partnership, a complete partnership deed with complete details is mandatory.
  12. Most of the companies also demand brand fees.
  13. The margin of the profit and/or amount of royalty or commission also varies from company to company.

You can contact at the website of the company you are interested in-

  • Hindustan Biodiesel
  • Hindustan biofuel
  • Hindustan petroleum

Disclaimer: The Information provided above is on the whole, and correct to the best of our knowledge. Readers are requested to use their acumen before taking any decision.

Article by Nidhi
Nidhi is a freelance content writer with 10+ years of experience. She has a great passion to write on valuable topics so as to provide precise information to her readers.

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