What?
The Cabinet Committee on Economic Affairs (CCEA) approved the changes to the earlier rule of company having to commit Rs 2,000-crore investment in the petroleum sector. Any company with a net worth of ₹250 crore can establish petrol pumps.
Authorised entities will, however, have to meet certain conditions such as setting up a minimum 5 per cent of their retail outlets in the notified remote areas within five years of grant of authorisation.
Besides, these entities will be required to install facilities for marketing at least one new-generation alternative fuel, such as CNG, LNG, and biofuel, at their retail outlets within three years of operationalisation of outlets selling conventional fuel.
Why?
The norms could attract companies such as Total-Adani, Saudi Aramco and supermarkets such as Future Group.
It has been revised to bring it in line with the changing market dynamics and with a view to encourage investment from private players, including foreign players, in this sector.
India has 65,000 petrol pumps, but needs about1 lakh more.