The OMCs have been tying up with other stakeholders, too, to develop their non-fuel retail business at retail outlets.
New Delhi: The government’s latest move to make LED bulbs and other energy-efficient appliances available for sale at petrol pumps will give a major fillip to oil companies’ business arising from segments other than fuel retail, oil minister Dharmendra Pradhan said.
The retail fuel outlets of Oil Marketing Companieswitness a total footfall of over 35 million every day. “In order to take advantage of this to enhance the non-fuel retail energy business, LED bulbs and other energy efficient appliances from EESL will be sold at ROs. The Ministry had recently taken the decision on daily pricing of fuel to prevent huge distortions in margins in the retail business. This step of selling LED bulbs will also help in the margins of retail outlets,” Pradhan said.
The minister was speaking at a ceremony marking an initial pact between the three OMCs – Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) – and Energy Efficiency Services Ltd (EESL) under the power ministry for selling of LED bulbs and other energy-efficient appliances at over 55,000 pumps across the country.
Pradhan urged EESL and OMCs to develop a viable business model for the retail outlets in the next six months. The oil companies will help in branding and marketing of the UJALA Scheme – the government’s flagship initiative to promote LED bulbs -- at all their retail outlets thereby making petrol pumps attractive to customers. “The RO dealers will directly conduct business with EESL and would get around 10 per cent margin,” Pradhan said.
The OMCs have been tying up with other stakeholders, too, to develop their non-fuel retail business at retail outlets. A pilot launch of tie-up with Mother Dairy Safal outlets has been carried out in Bhubaneshwar in Odisha under which customers are expected to get fresh and quality vegetables and fruits at affordable rates at the petrol stations.
BPCL has also entered into a tie-up with In & Out retail chain at their ROs. HPCL is also in the process of tying up with retail chains of the market to expand their business at ROs. Pradhan said the Janaushadhi Stores under the Department of Pharmaceuticals under the Ministry of Chemicals & Fertilizers will also be opened at ROs in the future.
Apart from this, Common Service Centre (CSC) concept of the Ministry of Electronics and Information Technology is also being explored to be brought to the petrol pumps. Under CSC, citizens will be able to avail many Government-to-Citizen and Business-to-Citizen services including PAN, E-Aadhaar Cards, utility bill Payments, banking solutions and Agri Services.
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