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Bharat Gas LPG Distributorship

Submitted by Ekikrat on Mon, 12/05/2016 - 00:19

Step by Step Procedure for applying Bharat Gas LPG Distributorship

The Bharat gas petroleum corporation provides the facility of distributorship to the citizens who want to start their self-employment. The citizen belongs to the various states and districts can submit their request for starting the gas agency under the Bharat gas. The eligible candidates can submit their application in the head office by post or by visiting the office. 

Type of Distributorship Area:

  1. ‘Sheheri Vitrak” will service the LPG Customers located within the Municipal Limits of the Metro city/City/Town.
  2. ‘Rurban Vitrak’ will service the LPG Customers located in the town and the villages falling within 15 km from LPG distributorship’s location and the area specified by the respective OMCs.
  3. ‘Gramin Vitrak’ will service the LPG Customers located in the villages falling within 15 km from the boundary limits of the LPG Distributorship’s location and the area specified by the OMCs.
  4. ‘Durgam Kshetriya Vitrak (DKV)’ will service the  LPG customers located in Difficult and Special Areas (like Hilly regions, Forests area, Tribal inhabited area, sparsely populated, disturbed area, islands, Left Wing Extremism (LWE) affected areas). 

Identification of Locations

Locations for setting up of LPG Distributorship are identified based on available refill sale potential. Oil Marketing Companies (OMCs) aim at covering all the areas of Country so that every household in the country has access to LPG. 

Upon Feasibility study for setting up of new LPG distributorships, the locations are identified based on the number of households, per capita consumption, LPG coverage. These locations will be decided by the Oil Marketing Companies and will be advertised in the local newspapers. 


Below are the reservation percentage for allocation LPG distributorship under various categories in all the States except Arunachal Pradesh, Meghalaya, Nagaland, and Mizoram.

Bharat Gas Distributor Reservation Percentage.PNG   

The percentage reservation for various categories in the North Eastern States of Arunachal Pradesh, Meghalaya, Nagaland, and Mizoram are:

Bharat Gas Distributor Reservation Percentage1.PNG  

Mode of Selection

Selection for LPG Distributorship will be done by inviting applications through advertisement under appropriate category in newspapers. Selection of LPG distributor for an advertised location will be done by the lottery system.

You can find the advertisements for various schemes in the below links: 

Advertisement for Bharat Gas Regular LPG Distributor 

Advertisement for Bharat Gas Rajiv Gandhi Gramin LPG Vitaran Yojana 

Advertisement for Bharat Gas Non-Domestic LPG Distributor

Common Eligibility Criteria

Eligibility criteria for Bharat Gas LPG Distributorships under Sheheri Vitrak, Rurban Vitrak, Gramin Vitrak and Durgam Kshetriya Vitrak type

  1. Be an Indian citizen and be a resident of India.
  2. Have passed minimum Xth standard examination or equivalent from a recognized Board. The criterion is not applicable for applicant belonging to Freedom Fighter (FF) category.
  3. Applicant should be minimum 21 years and maximum 60 years of age as on the date of publication of the advertisement. Not applicable under Freedom Fighter (FF) category.
  4. Not be a ‘family member of an employee of Oil Marketing Companies’ as on date of application.
  5. Be physically and mentally sound to be able to run the business and should not be totally blind
  6. Should not be convicted of any criminal offenses 
  7. ‘Own’ a plot of land for construction of LPG godown Or ‘Own’ a ready LPG cylinder storage go-down


  • The Individual, who fulfills the eligibility criteria for Sheheri Vitrak should submit an online application for LPG Distributorship.
  • The Individual, who fulfills the eligibility criteria for Rurban, Gramin Vitrak, and Durgam Kshetriya Vitrak, should submit an application form in prescribed format at Bharat Gas office.

Find below application forms for different Bharat Gas LPG schemes:

Bharat Gas Regular LPG Distributorship Application Form

Bharat Gas Rajiv Gandhi LPG Vitaran Yojana Application Form

Bharat Gas non-Domestic Distributorship Application Form

Non-Refundable Application Fee

For Sheheri Vitrak and Rurban Vitrak, applicants should submit non-refundable application fee as shown below through online payment

Categroy  Application Fee
 Open Category  Rs. 10,000
 OBC Category  Rs. 5,000
 SC/ST Category  Rs. 3,000

For the Gramin Vitrak and Durgam Kshetriya Vitrak, applicants should submit non-refundable application fee as shown below in the form of Bank Demand Draft.

Categroy  Application Fee
 Open Category  Rs. 8,000
 OBC Category  Rs. 4,000
 SC/ST Category  Rs. 2,500

Procedure for Receipt of Application

  • Applicants for Sheheri locations will have to make application on-line and submit them in portals.
  • Applicants for Rurban, Gramin and Durgam Kshetriya Vitrak locations will have to submit applications in the prescribed format, in sealed envelope only.

Acknowledgment for applications received will be sent to the applicants via different means of communications.

Draw of Lots

All the applicants will be individually informed about the status of their application. The list of ineligible applicants & applicants eligible for the draw of the lot will be made available on the notice board of the concerned office of the PSU Oil Marketing Company as well as on the website of the concerned PSU Oil Marketing Company.

Procedure for Draw of Lots

In the case of two or more eligible applicants, the draw for the selection of LPG Distributor would be conducted. All the eligible applicants would be communicated by letter through speed post/Regd. Post AD and through e-mail/SMS (if details are provided in the application) to report for a draw of lots for selection of LPG Distributor at a specified place on specified date and time.

Successful candidate in the Draw of Lots, will have to submit a Demand Draft of value equivalent to 10% of the security deposit, as applicable to different type and category of LPG Distributorships, within 7 working days, from the date of receipt of letter issued by the concerned office of the OMC in this regard.

Type of Distributorship  Open OBC SC/ST
Sheheri Vitrak/ Rurban Vitrak  50,000  40,000 30,000
 Gramin Vitrak/ durgam Kshetriya Vitrak 40,000 30,000 20,000

In case the location is advertised for Sheheri Vitrak the selected candidate will have the option to pay the amount through an online platform. The candidature of the selected candidate will be canceled in case he/she fails to deposit the above amount within 7 working days from the date of Draw of Lots.

A Letter of Intent (LOI) will be provided to the successful applicant to confirm the Bharat Gas distributorship allocation.

Commissioning of the Distributorship

A candidate who has been given the ‘Letter of Intent’ (LOI) would be required to fulfill the terms and conditions as contained therein, so as to commission the distributorship within four months from the date of issuance. The selected candidate (LOI holder) would be given training and has to clear pre-commissioning test by scoring qualifying marks that are 80%.

In case LOI holder secures less than 80% marks in the quiz, re-training would be given and re-test conducted. Before commissioning, Letter of Appointment would be issued to the selected candidate and an agreement will be executed as per the standard LPG Distributorship agreement.

Tenure of Distributorship

The tenure of the Bharatgas Distributorship shall be for an initial period of 10 years and renewable for every 5 years thereafter, subject to the examination of the performance of the distributorship by the respective OMC.