Liquefied Petroleum Gas (LPG) demand is steady year-round, with strong profit margins, making it a suitable option for conducting business. While the initial investment might seem high, it’s possible to secure a loan during the startup phase. As the business thrives, financial stability follows. Today, we’ll outline the gas agency setup process, covering application, costs, and required documents, guiding you through each vital step.
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4 Types of Distributors
To establish an LPG gas agency, the initial step involves choosing a distributorship type from a range of four categories: Urban, Rurban, Rural, and Hard-to-Reach Regional.
Before applying, it is essential to ascertain the precise location for the agency set-up. This can be achieved by conducting a comprehensive area survey. The outcome of this survey plays a pivotal role in determining the suitability of the chosen location.
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Specific prerequisites That Need To Be Followed:
The age should be between 21 and 60 years.
The applicant must hold at least a 10th-grade certification from an accredited educational board.
No member of the applicant’s family should be employed by an Oil Marketing Company (such as IOCL or HPCL).
A non-refundable application fee of Rs 10,000 is applicable.
Additionally, a reserve fund of Rs 15 lakh is obligatory. These funds will be allocated for the establishment of storage facilities and agency offices.
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Which companies provide distributorship?
Distributorship opportunities are available through esteemed government entities: Bharat Gas, Indane Gas, and HP Gas. These companies follow the practice of announcing such opportunities via newspapers and various media channels. The application procedure is valid only when these companies issue official notifications.
How To Get A Licence?
Firstly, register at the official website at https://www.lpgvitarakchayan.in/. Subsequently, you need to establish a personalized profile. There’s a possibility that the companies might interview the applicant. After the interview process, the details provided by the applicants will undergo verification.
Following a comprehensive investigation, a letter of intent is issued. After this, the candidate will be required to submit a security deposit to the chosen company for distributorship. Once you have fulfilled the eligibility criteria, the gas agency will be registered under your name.
