FAQ (Frequently Asked Questions)
LPG, Cylinder & New Connection (Q.1 - Q. 11)Rates and mini cylinder (Q. 12 - Q. 19)Premier LPG Limited (Q. 20 - Q. 28)Rating (Q. 29 - Q. 31)Association-ship (Q. 32 - Q. 41)About LPG Business (Q. 42 - Q. 46)About Auto LPG Business (Q. 47 - Q. 82)About Bottler(Q. 83 - Q. 88)Franchisee (LPG) (Q.89- Q.91)Master franchisee (Q. 92 to Q. 99) Supplementary (Q. 01 to Q. 07)
LPG, Cylinder & New Connection (Q.1 - Q. 11)
LPG stands for liquefied petroleum gas. It is stored in cylinders in liquid form which is released when the valve is opened through a low pressure regulator for domestic use & high pressure regulator for commercial use.
Ans:- Follow instructions given in the instruction card which will be issued with connection. Sample is available in the “Customer Price List” at our website.
Ans. The govt. of India allowed open sale of gas by private entrepreneurs under parallel marketing system in 1993. We are one of the oldest parallel marketers in india.
Government oil company’s sizes are 5kg, 14.2kg, 19kg, 35kg and 47.5kg and private company’s sizes are different. Premier has standardized a number of cylinder sizes, i.e. 33,17,15,12,6 and 4 kg.
Ans. There is a difference of valve and regulator whereas manufacturing standards specifications are the same.
Ans. Our any size of cylinders can be used for any purpose i.e. domestic, commercial & industrial as per consumer’s requirement and convenience.
Ans. Govt. cylinders are allowed only for specific use because domestic cylinders are subsidized, it cannot be used for commercial and industrial use.
As per gazette notification no. 293 of may 2000, the domestic cylinder cannot be used for industrial and commercial purposes. The preventive authorities are conducting raids regularly. See some clippings by visiting the “Parallel Marketing in LPG “on our website and more are available in our office.
No, the customer can take our connection without returning Govt. connection. No company is allowed to fill the cylinders of any other company as per explosive act. Moreover, our valve is different from the valve of the Government cylinder.
Rates and mini cylinder (Q. 12 - Q. 19)
Ans. The rate of private companies is also change every month on the pattern of PSU’s Companies.
For domestic purpose, the parallel marketer has to pay custom & import related duties/charges whereas govt. oil companies are exempted. In case of commercial/industrial uses, our rates are equal.
These cylinders are non manufactured illegally with low grade steel sheets of lesser thickness without adhering to quality controls & test check required for cylinders. In other words, you can say, you are purchasing life bomb.
Premier mini cylinders are manufactured with standard raw materials of prescribed quality under strict quality control. They carry certification totally safe and leak proof. Our LPG price is very less in comparison with illegal traders even from govt. oil company’s mini cylinder of 5 kg.
Premier LPG Limited (Q. 20 - Q. 28)
Ans. Yes, our company is recognized (approved) by government of India, can be verified from the website of the explosive department at www.peso.gov.in
The company is limited but not publicly listed. Its shareholding is with some limited people. The company is running under the supervision of Mr. B.D. Dhamija, CEO (Business Head) and his son Mr. Amit Dhamija, Managing Director.
We have made and lost many dealers in the past due to the govt. policies in this trade. After visit the “Parallel Marketing in LPG”, at our website, you will understand the past and present scenario of this trade. Now, due to many favorable policies rolled down by our Hon’ble Prime Minister, Shri Narender Modi Ji recently, we feel this is the perfect time to start and grow the business. However, the dealer no. cannot be shared to avoid them of harassment over phone. You are welcome to visit the dealer personally after getting the details from the company and speak to them face to face personally at their place.
We are offering 15 categories of association-ship all over India and have the experience to start our supplies in a short period depending on the volume of the market. Visit “Business Opportunity” at our website for your satisfaction.
We are already hiring people and finding associates in all areas. However, with our current team, we are able to deal with prospective associates all over India. Opening of an office is only a matter of business development in each zone.
Rating (Q. 29 - Q. 31)
Association-ship (Q. 32 - Q. 41)
All the details are available at ‘Summary chart of investment for associates’ in the “Business opportunity” for each category on our website which can be seen in most regional languages of India.
Ans. Please refer to the ‘Step by Step action’ in “Business opportunity” for each category at our website.
Ans. Please refer to the ‘Detailed terms and conditions’ in “Business opportunity” for each category at our website.
As already mentioned above, to survive in the market, we have to serve the customer directly through our network. You can survey the market and will realize that customer is not getting much discount except bulk volume consuming customers being supplied directly by the oil companies. It is the game of ‘mediator’ only.
Our policy is to serve the customer through our marketing network not through mediator or supplier who are working and charging high rates from the customers. Please see ‘History’ in “About us” on our website to know how we are working. You can satisfy yourself by visiting our plant at Bhiwadi, for Google location, please visit “Contact Us” on our website.
Ans. Yes, see our category ‘Customer Representative’ & ‘Mini Retailer’ even house wives can do the business. The details are available on website in “Business Opportunity” navigation.
Ans. Associate can give three months notice but not before one year.
Yes. The interested party can go through the details of business, after clearing his doubts over phone or by mail, can submit the application form along with all requisite papers. Can also send google location of the land etc. and book the area by deposit of the security amount online.
About LPG Business (Q. 42 - Q. 46)
The PSU’s companies are giving free cylinders to bulk user of commercial/industrial. So we have also to provide free cylinders. However, the company is ready to provide cylinders to associates at 50% security for such customers on the specified terms.
Ans. Cost of construction depends upon the size of godown about Rs.5-10 lacs and time will be 6 months.
No, supplies are not possible under interim arrangement till the godown is approved from the explosive department. We have planning to start bottling facilities shortly as well as C&F godown at each location. You can, book your location by depositing the security amount against interest or under “Risk free Opportunity”
- The minimum area of land required for the construction of godown for storage of LPG and other parameters are as under:-
- up to 4000 kg storage - 500 sq. mtr.
- up to 8000 kg storage - 1000 sq. mtr.
|Qty. of LPG||Godown size (approx.) mtr.||Plot size (approx.) mtr.||Godown size (approx.) sq. mtr.||Safety dist. mtr.|
- Location of LPG godown:-
- The site should be away from crowded localities and no high tension overhead wires should pass through the site.
- The licensed premises shall not be used for any purpose other than for keeping of LPG filled cylinder in the prescribed quantity.
- The minimum distance to be maintained at all times between any building, public place, public road or any adjoining property.
- LPG cylinder can be stored in double rows horizontally (upright position) and can be placed one on the other (not more than 2 heights) in case of filled cylinder & 3 height in case of empty cylinders. There should be minimum gap of 60 cms between the two rows. Similarly 60 cms gangway should be left open between the inner boundary of the godown and the rows of the cylinders for freely accessing and monitoring of the cylinders
About Auto LPG Business
Gas Pump (Q. 47 - Q. 82)
The central government floated tenders from the parties having worth of Rs. 200 crores and taken the bank guarantee of Rs. 50 crore for CNG tenders. So, they are supporting by allotment of land, but in ALDS, the companies having license have not paid any amount, so they are getting land from private land owners and running their pump successfully.
Yes, if the area is above and if it is on the internal/state highway road, front should be minimum 20 mtr. and if it is on the national highway, then there should be front of 35 mtr. as stipulated by NHAI.
Please go through the ‘Detailed terms and conditions of Dealer (Auto LPG)’ and ‘Step by Step action’ under Level-II which is available in “Business Opportunity” at our website.
Vehicle running cost for auto LPG is about 50% less as compared to petrol/diesel and is also an environment friendly fuel. Money saved is money earned, successful phenomena will drive the sale of auto gas. Three wheelers of bajaj, piaggio, atul etc. are already available in LPG duly approved. LPG kits for four wheelers are also available in the market and RTO is registering the vehicle. The dealer will get handsome income and many more benefits on sale of three wheelers and kits and other allied products. Needless to mention that without availability of the product, RTO cannot register the vehicle, as soon as pump become operative there will be lot of LPG vehicles.
Customer price will be Rs. 13000 - 18000/- depending on the model of the car/kit. Local RTO does the registration. Complete support is given by the company and a minimum margin is about Rs. 4000/- per kit in the total process.
No. The company may authorize someone to invest or run the pump in COCO Scheme. We suggest the CODO scheme in case of confusions and the company can help in arranging finance for the project, if required.
An average CNG vehicle takes about 5 minutes to get refilled due to its high pressure of 80 - 100 bars and can only get about 6-8 kgs. at once which can run less than 150 kms. therefore making the vehicle to stand in line again. Auto LPG is filled up to 50 liters within 2 minutes at a 5-6 kg bar making it much safer too and the vehicle can run over 750 kms. on full tank. For comparison of other benefits, please visit ‘Auto LPG’ in “Products” at our website.
NOC is to be taken from the district magistrate/collector or commissioner of police of the area. He will issue consolidated NOC after taking NOC from 8-9 departments of his district. The company provides you complete guidance from time to time without any charges. There are no legal charges for NOC but some departments demand in the shape of donation/chanda for social welfare and we have to pay for early process.
You can get civil work done, but installation of machinery is allowed only by authorised installer under approved operator as per guidelines issued by the explosive department.
The license of the LPG godown is issued in the name of the dealer for which he can do all the work himself, but in case of auto LPG pump, the license is issued in the name of the company as ‘Authorized Operator’.
We only install LPG pumps. Installation of CNG pump costs four times as much as an LPG and its kit is also three times more expensive. For detailed information please visit ‘Auto LPG’ in “Products” at our website.
To safeguard the interest of the company, the deposit is being taken and the company is paying 8% simple interest p.a. on it and you are getting commission on sale. If you lease your land on rent, then we will give security to you as per market standard.
Ans. Yes, if there is heavy traffic of three/four wheelers in the area.
Ans. Yes, extra land will be required, other than of the licensed area of the petrol pump.
Ans. Never fill gas illegally from a cylinder.
Ans. Yes, all our plants, pumps and godown are insured and there is also public liability insurance.
Unlike CNG, which is pressurized at 100 bars, LPG is pressurized at just 5-7 bars, which makes it as safe as conventional fuels. The automotive use of LPG has an excellent safety record and various crash tests and fire tests have proved that, owing to the strength and integrity of the fuel tank, it is safer than petrol and on a par with diesel. The conversion of vehicles to LPG has, of course, to be undertaken by a competent person working in accordance with the prescribed standard
With a global example to follow of more than 27 million auto LPG vehicles, supported by 76,000 LPG filling stations, no wonder India has recorded staggering growth rates of more than 14% last year and India is well exceed 400 thousand tons of auto LPG sales this year.
Ans. Basically, ALDS can be installed in 500 sq. mtr.. Extra activities like service station can be started in extra space.
In ALDS license premises, nothing can be done extra, but if the plot is bigger than required, you can adjust the other activities otherwise land/shops can be arranged in nearby areas.
We have tie-up with various agencies from where we will procure three- wheeler and can supply to the customers. Your margin is confirmed & there is no need to spend money in sub-dealership.
There is no compulsion for running the extra activities from ALDS. You can start with your investment if you are comfortable otherwise company is taking the responsibility of providing the associates who will pay you the rent or commission on sale.
Ans. In main city, cost of land is very high & we are offering minimum rent guarantee as per market rate.
Ans. It is possible only by visiting and surveying these places.
In CODO scheme- ₹ 10 lacs of LOI (approval of license & other test certificates during installation, cathodic protection, rule 33 etc. grant of license) & ₹ 20 lacs of civil works approx. cost as may vary depending on the land. Dealer is free to do the civil work himself. Please go through the ‘Detailed terms and conditions of Dealer (Auto LPG)’ which is available in “Business Opportunity” at our website.
When you handover land to builder, you will lose your ownership & in our proposal you will remain the land owner as well as get the appreciation of the property. Moreover, we are giving minimum guarantee of rent for long period or offer to run your own pump. This business is on cash and no problem of collection and sale. Only one competitive person can look after the business. We will suggest you to spent Rs. 30 or Rs. 80 lacs where you will get very good income. Moreover, company is providing minimum guarantee of income equal to market rent of the land.
- Sub dealership of three wheelers.
- Approved kits workshop.
- Pollution checking cabin.
- Tyre shop
- Convene store/coffee house/ bakery shop
- School van/ taxi operator
- Shop for sale of ISI mini cylinders & accessories like Stove/ regulator geyser/generator etc. (one room for godown 10′ x10′ required for License) can have spare space nearby area or on highway, restaurant etc.
Ans. We can get you in touch with our consultants, M/s Relax Consultants who may be able to help you.
You will be surprised seeing CNG has taken a backseat in cities like Hyderabad, Bangalore, Jaipur Chandigarh etc. LPG is far more a superior fuel than CNG. CNG is only running where special policy/rates were given by the govt. as in Delhi, Mumbai and Gujarat etc.
The project does not cause any hindrance in terms of loan getting approved by the bank/Nbfc but other problems like cibil/income tax returns etc. may cause a problem in dealer getting loan directly. Here the company uses his expertise panel of financers/consultants etc. against the collateral of the associate with our associate company
Although electric market is a distant scheme but has penetrated in form of e-auto where the results are dissatisfying due to the electric points are very less, the high cost of battery which has to be replaced regularly, the short run it makes as compared to other fuels. The discarded batteries too are very harmful for the environment.
- Minimum 500 to 600 Sq. mtr. (size front 20 mtr. x depth 25 mtr.) can say (front 60 sq. ft. x depth 75 sq. ft.) or big size on main road on lease. Lease period should be 20 years or more but not less than 10 years. Land can also be purchased or taken on Market Rate
- The Land should be above 60 cm. from road level with 2 mtr. high boundary wall with water and electrify connection (temporary & Permanent).
- The site should not have any overhead high tension /electric/telephone/ wires.
- There should be no underground electric or telephone cables trench, drainage or water pipe lines, waste water drainage or any kind of obstruction.
About Bottler (Q. 83 - Q. 88)
The minimum area of 3 acre land required of 100 MT. capacity for the construction of bottling & blending unit to store LPG in pressure vessels, filling in cylinders and storage of filled cylinders. The other parameters are as under:-
- The site should be away from crowded localities on minimum 6 mtr. width road preferably open space about 500 mtr. radius and no high tension/electric/ telephone/wires overhead should pass through the site.
- The licensed premises shall not be used for any purpose other than for filling and storage of LPG filled cylinder in the prescribed quantity.
- There should be no underground electric or telephone cables trench, drainage or water pipe lines, waste water drainage or any kind of obstruction.
After getting NOC it can be completed within 6 months.
Ans. As given in detailed terms & conditions.
Ans. Refer- Guidelines to maintain the plant properly and follow the instruction given by the LPG kit provider.
Franchisee (LPG) (Q.89- Q.91)
Ans. Details of ₹ 3.00 crore has been given in bottling project and ₹ 2.00 crore has been given in projected profitibility.
The company will require only copy of agreement between the franchisee (LPG) and associate who erect the plant. However, needless to mentioned that plant will be operated for Premier LPG Limited as per guidelines of Explosive department.
Master franchisee (Q.92 - Q.99)
This is necessary item not luxury and as per latest news, government is providing parallel platform with government oil companies and there is huge demand of the product, the details are available at our website. However, initially you can start as business associates for state where no investment is required except security deposit of ₹ 10.00 lac which is refundable with 8% simple interest on maturity of the agreement. This associationship is giving handsome return.
Ans. You can see our previous record that there is no complaint during 27 years and we have refunded the amount of our associates after closing the business.
There were numerous Distributors/Dealers who work with our company since 1993 to 1998 but left when Govt. open subsidized cylinders at large. There are few Distributors/Dealers which become in 2012 when Govt. open direct subsidy transfer in account but they left when the scheme was closed. Click to see record of all associates.
Supplementary (Q.01 - Q.07)
There is lot of publicity done by the company between 1993 to 1999 when business was growing & the scripts of publicity are available at our office whereas from 2016 to date is available at our website under the “Publicity” head.
Land duly converted for commercial use like Auto lpg dispensing station-5% per annum paid on monthly basis Built-up property for commercial use other than auto lpg i.e. service center, work shop etc.-4% per annum paid on monthly basis Built-up fully furnishied property for guest House purpose-3% per annum paid on monthly basis Agriculture land duly converted for bottling plant-3%. per annum paid on quarterly basis