In a move to make Primary Agricultural Credit Societies (PACS) financially viable, the central government had approved the opening of retail petrol/diesel outlets and LPG distributorships by them in 2023. The Ministry of Petroleum has now issued revised and integrated guidelines for selection of dealers and distributorships. This information was provided by Union Home and Cooperation Minister Amit Shah in a written reply to a question in the Lok Sabha.

In his response, the Cooperation Minister explained that according to the revised guidelines, PACS have been included under Combined Category 2 (CC-2) for petrol-diesel dealerships and Combined Category (CC) for LPG distributorships. They can now apply online as per the advertisements issued by Oil Marketing Companies (OMCs). Additionally, PACS have been given a one-time option to convert their wholesale consumer pumps into retail pumps, for which the ministry has also issued detailed guidelines.

Application and Selection Process

The eligibility criteria for PACS has been issued and applicants must submit documents related to registration, land availability, and financial status. According to information provided by the oil marketing companies, 286 PACS from 25 states and union territories across the country have applied online to open retail petrol pumps. Of these, 26 PACS have been selected by OMCs.

Additionally, 116 PACS from 5 states have sought permission to convert wholesale consumer pumps into retail outlets. Of these, 56 PACS have already been commissioned. Two PACS in Jharkhand have applied for LPG distributorships. The Union Cooperation Minister stated that this decision by the government is expected to empower PACS financially and improve energy supply in rural areas.