Today, we will draw your attention towards a profit making scheme for farmers that is run by the Indian government. Central government is giving the opportunity to apply for kisan petrol pump in rural areas. This post will guide you how to apply for petrol pump in rural area. We will also share the approximate investment amount while opening a petrol pump including NOC and profit margin.
Let's dive deeper
What is Kisan petrol pump
Dealerships of low capital cost petrol pumps are provided in rural areas by authorized companies of the Government of India. Which is run by the name of kisan seva kendra.
Indian government authorized petrol pumps
Some of the government authorised petrol pumps are
- Indian Oil
- Bharat Petroleum
- Hindustan Petroleum
Kisan Seva Kendra petrol pump dealership 2021
Some of the government authorized petrol pump companies such as Indian Oil, Bharat Petroleum, Hindustan Petroleum (HP) provide opportunities to open a petrol pump in rural areas. These big petrol pump companies provide petrol pump dealership offers in rural areas under kisan seva kendra. Farmers can avail the opportunity by filling up the online form released by these petrol pumps and to get this form you need to visit their websites and keep tracking the kisan petrol pump advertisement.
Reason behind Kisan Seva Kendra petrol pump dealership
Usually people living in rural areas have to travel a lot by walking due to the lack of a market. They also have to cover a long distance only to fill the petrol in their vehicles. By doing this they have to travel some more km without any reason. However, this is one of the reasons behind the Kisan petrol pump Seva Kendra dealership scheme.
But at the same time the Kisan seva kendra provides a great opportunity under the kisan petrol pump yojana to such farmers who can invest some money to open this petrol pump. Through Kisan Seva Kendra, the Indian government is giving an opportunity to farmers to open a low cost petrol pump in rural areas.
Land required for petrol pump in rural area
land required for petrol pump in square feet - 150 x 150 feet, the given dimension is the front end depth of the land. However, this is not the fixed dimension; dimension may vary according to the land shape and size. Nearly half an acre of land is sufficient for installing petrol pumps in rural areas.
Farmer petrol pump cost
Petrol pump farmer price - We have divided the farmer petrol pump cost in two segments so that you can understand it easily
Construction cost - Includes electricity, water, outlet, plot development, wall construction and security amount. After calculating all these expenses one has to invest approximately Rs 12 lakh to Rs 15 lakh.
First billing - In your first billing you need to pick 10,000 litre petrol and 10,000 litre diesel that will cost nearly rupees 20 lakh.
Total investment to start a petrol pump under kisan seva kendra is approximately Rs 35 lakh. While opening the petrol pump in highway location investment will increase highly.
Kisan Seva Kendra petrol pump registration
Pollution control board NOC - To start a kisan petrol pump you should apply for no objection certificate from the pollution control board. It is compulsory to apply and get this certificate so that your petrol pump can run smoothly without any illegal issues.
Conversion to non agricultural land - Villages generally have agriculture lands and petrol pump falls in the category of commercial activity. So as per the petrol pump guidelines it is compulsory to convert your petrol pump agricultural land into non agriculture land. After implementing it, you can start your kisan seva petrol pump or jai kisan petrol pump.
How to open petrol pump video
How to apply for kisan petrol pump
- Earlier the process of applying for petrol pump was offline but now it has been changed and you have to apply for petrol pump online.
- You should visit company website to apply online petrol pump
- Indian government authorized companies are (HP) Hindustan petroleum, Bharat petroleum and Indian oil
- Generally, all these 3 companies release petrol pump advertisements together. You need to keep checking the kisan seva kendra petrol pump advertisement. Also Keep checking your local newspapers along with their websites.
Requirements for opening petrol pump
- Applicant must be 10th pass and have the certificate of 10th class.
- Applicant farmer must have the land on his name or on his family members name.
- Land must be clear with title and out of any illegal issues.
- Land near highway will be preferred.
- Land having the facilities of electricity, polls, water will be preferred.
- Applicant must be below 60 years.
Kisan petrol pump profit margin
3000 litre to 5000 litre per day sale is estimated in good areas. This sale will be generated after selling petrol and diesel in decent quantities.
If only 1000 litre petrol sells in rural areas then according to the current petrol price that is between Rs 95 to Rs 98 and more accordingly. One can generate approximately Rs 3,000 to Rs 5,000 per day but remember you have to reinvest a big amount for purchasing more petrol.
less risk in comparison of earlier
Earlier the price of petrol changed according to the government and dealers had to suffer. But today petrol pump prices change according to the barrel rate and if the rate goes up then the dealer will purchase and sell it at a high price and if petrol price goes down then the dealer will purchase and sell petrol at a low price which results in no loss.