Detailed terms and conditions for dealer (Auto LPG) under COCO scheme

  1. Eligibility criteria

The person should be of age minimum 18 years, having suitable land on prime location with minimum plot area of approximate 500 sq. mtrs. (frontage 20 mtrs x depth 25 mtrs.) or more within town/municipal limits. Interested land owners will offer the land with boundary wall above 60 cm. from road level to company under COCO scheme (company owned company operated) against margin per liter/ fixed rent.

The applicant will execute lease agreement minimum for 20 to 30 years as per mutual agreement but not less than 10 years. The applicant will provide the necessary documents required for approval of drawings from explosive deptt. The lease deed will be executed after getting NOC from the competent authority and possession of the land will also be handed over. The conversion charges of land applicable in the area will be borne by the applicant in all respect and lease expenses will be borne by mutual understanding. The rent will be payable from the date of operation of ALDS. The rent will be paid by 10th of every month.

  1. Financial requirement

The applicant has to pay Rs.5.00 Lac on account of layout approval & issue of LOI (letter of Intent). On completion of ALDS, this amount will be converted into security deposit refundable @ Rs. 8% per annum with simple interest at the time of maturity.

  1. Infrastructure

The authorized person or company will execute civil work including canopy etc. on the land itself after getting possession of the land.  The responsibility for approval of drawings will be of the company & thereafter getting NOC from Distt. Authority will be arranged by the applicant

  1. Security deposit

The applicant paid amount for approval of drawings and issue of LOI will be converted into the security deposit as mentioned above.

  1. Terms of appointment

The terms will be minimum for 10 years or more with mutual understanding. The renewal will be at the sole discretion of the company. The company will have a right to terminate the agreement earlier, if any hindrance create by the applicant and in that case, his security will be forfeited.

  1. Jurisdiction/area

The Company will not appoint any Auto LPG dealer within a radius of 5 Km. area.

  1. Statutory requirements
  1. The company has been approved by the C.C.O.E as ‘Operator’ and empowered to issue L.O.I. The applicant has to get NOC from the competent authority.
  2. Insurance of the ALDS/Stock-in-trade/Third party/Public liability is mandatory, which will be the responsibility of company or by the authorized person to operate the ALDS at his cost.
  3. The concerned person authorized as operator will comply with the provisions mentioned in the LPG control order, 2001 issued by the Ministry of Petroleum and Natural Gas and its subsequent amendments from time to time. He will also abide by the terms & conditions/recommendations of the Task Force Committee constituted by the Govt. of India under the chairmanship of C.C.O.E. Nagpur which are available at website. From various acts, rules regulations, By-Law enacted and/or amended and/or imposed as at present or in future from time to time as well as,  Labour, Environment , Petroleum Rules, Municipal acts etc with regards to the ALDS.
  4. The company will all times keep indemnified the owner of land for losses against all actions, proceedings, claims and demands against it for his ALDS by the Central and/or State Government, Municipal, Local, and/or any other authorities, any customers or third party as a result of or in consequence of any act or omission of whatsoever nature by the dealer or his personnel/representative during execution/operation of ALDS.
  1. Rates

The rate of Auto LPG will be changed as per International market every month. The circular will be issued by the company by 1st of every month. Changes if any, in rates will be communicated by the company in advance. Issue of circular at the address/e-mail given by the company will be sufficient to implement the rates. The rates applicable by the company as per its circular will be charged from the customer as the dealer will get its fixed margin.

  1. Procurement

The company has tied up with Aegis Gas Pvt. Ltd., Mumbai and Indian oil Patronas Private Limited ensuring product consistency, quality, and safety with International standards for regular supply of Auto LPG as per specification. The company will have the right to purchase Auto LPG from any other party and in that case, dealer will have no objection.

  1. Supply

Supply of  Auto LPG at the stand alone ALDS and dispense the same to the consumer using motorized vehicle along with ensuring that the conversion kit is duly approved & tested from time to time as notified in Central Motor Vehicle Rules, 2001. All these will operate by the company or authorized person.

  1. Maintenance of stock

There should be  always hold a minimum stock of 3 days ‘supply subject to the maximum capacity of the storage tank.

  1. Responsibilities
  1. Operation of ALDS Sufficient manpower has to be arranged by the company or by authorized person after training from company or its authorized representative. Only trained persons will be deployed for working at ALDS.
  2. Working capital
    1. The company or authorized person will meet with all the expenses for day-to-day operating and arrange working capital to operate the ALDS.
    2. The company or authorized person will provide a computer at site with internet facility, CCTV cameras and maintain the same operational for 24 hours, all days of the week.
    3. The company or authorized person will make all the payments to concerned authorities i.e. Weight & Measure Deptt. etc. directly and proof of such payments made shall be submitted to PLL as and when needed.
  3. Maintenance of plant & machinery
    1. Annual maintenance of plant and all machineries will be handled by PLL from time to time.
    2. Company will arrange all the required facilities.
    3. While developing the above model, additional revenue towards ATM/ Service center are not considered in the profitability statement. The applicant will not have any right on the income generated from it.
  1. Return on investment

For North India
Rs 0.75 per ltr.
For South India &West Bengal
Rs 1.50 Per ltr
Or fixed rent 4 to 5% of the market value with security from the company as per mutual consent 


Projected Income per annum

where diesel auto running:
Rs. 08.10 Lac
where diesel auto banned:
Rs. 027.00 Lac

Rs. 54.00 Lac

Rest part of India negotiable as per distance from import/storage facility 

Above margin are including GST.

  1. Publicity
  1. All publicity material will be supplied as per company policy.
  2. Company will arrange further local publicity including cable TV in consultation with the PRO/BDM as per policy of the company.
  3. The company will also provide maximum support in organizing road show, public campaign and exhibition in his areas.
  4. National & zonal level publicity, national newspaper, T.V., hoardings on highways etc. will be arranged by the company as and when company felt the need of it.
  1. Submission of report /returns

Periodical reports/returns will be maintained & submit by the staffs appointed by company  from time to time.

  1. Surrender of association ship

Either party shall give at least 3 months’ notice in writing in case it wants to dissolve the agreement before maturity but not before the completion of period of lease/agreement. The notice to be given to either party shall be deemed to have been served if sent by registered post at the address entered in this agreement or the changed address duly communicated.

  1. Arbitration clause

In case, any differences or dispute arises between the parties, it will be referred to the sole arbitrator to be appointed by managing director of the company. The arbitration proceedings shall be governed by the provisions of arbitration and conciliation act as applicable at the prevailing time. Language of the proceedings shall be in English and venue for arbitration shall be in Delhi. The decision of the arbitrator will be binding on both the parties. Courts of Delhi only shall have jurisdiction to adjudicate upon the findings of sole arbitrator.

  1. Miscellaneous provisions
  1. All the 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.
  2. 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.
  3. 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.
  4. The acceptance or rejection of the application is at the sole discretion of the company. After rejection, no correspondence will be entertained in this regard.
  5. The company reserves the right to change, amend, add or delete any/all clauses at any time without prior notice.
  6. All disputes are subject to jurisdiction of Delhi courts only.

He will return the duplicate copy of these detailed terms and conditions duly signed in token of acknowledgement and acceptance to the company.

Place:                                                                                 Signature___________________                                                                                                 
                                                                                            (Authorized Signatory)

Date:                                                                                  Name    ____________________

In this category, the company will pay rent to the owner at the rates fixed with mutual understanding. The owner can also opt the terms of rent against sale of Auto LPG @ per liter fixed by the company as per area basis, but he cannot claim any amount earned by the company from sale of other allied products. The owner may not have any objection in case company appoints any person/agency to operate the ALDS.

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