Summary of terms for dealer
Eligibility criteria Person aged minimum 18 years, educated, having good reputation in the market.
Financial requirement Initial Rs.2,00,000/- (Rupees two lac) only.
Infrastructure Well equipped office & MMV (Medium Motor Vehicle)
Godown duly approved and licensed by Explosive Deptt.
Security Deposit Rs. 0.50 lac against 5% simple interest per annum on maturity.
Franchisee fee ₹. 25,000/- (Rupees twenty five thousand) only one time payable with 1st order(Non Refundable).
Terms of appointment Three years with the provision for further renewal by mutual consent.
Jurisdiction/area One tehsil or in city by mutual consent.
Quantum of business 10,000 domestic connections & no limit for commercial/industrial supply.
Statutory provision Shop establishment, GST registration, Local, if any.
Rates Changed as per international market every month.
Refer customer price list on website.
Procurement Procurement from plant.
Supply Delivery of cylinders to the retailers/mini retailers/consumers at their places
Maintenance of stock Stock for 3 day’s supply &10 new connections
Return on investment Connection : Domestic- Rs.480; Mini- Rs. 318; Commercial- Rs. 240
LPG : Rs. 6 in big cylinder & Rs. 7 in mini cylinder
Support from company 1. Training to sales representative, accountant, clerk and any other staff to be appointed by the dealer free of cost at business associate/company’s office.
2. Provide office/printed stationery at reasonable rates if desired by the dealer.
3. Provide advice for approval/license of godown or any other help in completing the formalities free of cost or can provide consultant for the same on reasonable rates.
4. 50% share of the salary/expenses/incentive of business consultant, freelancer, liasioning assistant and surveyor engaged on the terms laid down by the company to establish and develop his business as well as for publicity in his area.
5. Allow dealer to recommend dealer, retailer, mini retailer and customer representative in his area on the terms and conditions framed by the company.
6. Loan to consumer for connection @ Rs. 1000/- only on submission of documents mentioned in the consumer loan scheme.
7. Allow dealer to search the industries for providing gas bank in any area at very reasonable terms against the commission in installation and refill.
8. Provide cylinders in 50% security where dealer provides free of cost in commercial and industrial units.
9. Support in arranging funds from the banks/financial institutions against collateral for construction of godown, purchase of cylinder and vehicle for loading unloading & working capital.
Publicity Share basis with company & associates
Submission of report/returns Submit periodical reports/returns to the company
Surrender of association 3 months’ notice in writing but not before one year.
Arbitration clause In case, any dispute arises between the parties, it will be referred to the sole arbitrator to be appointed by managing director of the company and jurisdiction will be Delhi only.
Miscellaneous provisions
  1. The acceptance or rejection of the application is at the sole discretion of the company.
  2. The company reserves the right to change, amend, add or delete any/all clauses without any notice.
  3. All disputes are subject to jurisdiction of Delhi courts only.
  4. All terms and conditions have been framed in English language and translation options are for understanding purposes and facilitate the visitors only. In case any difference is found in translation, English version shall be final and binding.
  5. These are general terms and conditions; the contract/agreement executed between the parties after negotiations shall be final and have an overriding effect on these general terms and conditions.
  6. These terms and conditions may be changed, altered, modified depending upon the change in governing rules and regulations issued by the Government of India from time to time.
FAQ (Q-42 to 46) LPG Business Detailed terms & conditions Step by step action Application form