Question : MARKETING DISCIPLINE GUIDELINES

(a) the details of the marketing discipline guidelines issued by the Government/Oii Marketing companies (OMCs) for opening/ allotment of new retail outlets/LPG distributerships;

(b) whether the Government has received any complaints/cases of alleged irreguiarities/malpractices by OMCs in allocation of new retail outlets/LPG distributorships;

(c) if so, the details thereof including the number of such cases reported and the number out of which irreguiarities/ malpractices were established during each of the last three years and the current year and the punitive action taken by the Government thereon including cancellation of LPG distributorship if any, OMC-wise; and

(d) the mechanism put in place by the Government to check irreguiarities/malpractices in allotment of retail outlets/ LPG distributorships?

MINISTER OF STATE OF THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN) :

(a) Oil Marketing Companies (OMCs) have reported that ‘Marketing Discipline Guidelines’ in existence are related to facilitating the marketing of petroleum products by the operating dealers of Public Sector OMCs on the principles of highest business ethics and excellent customer service and not regarding allotment of new Retail Outlets/LPG Distributor ships.

(b)and (c) Yes. Madam. The details of complaints regarding irregularities in die selection of RO Dealers/ LPG Distributor received during the last three years and the current year and number of irregularities found established is as follows:

OMCs No. of Complaints Retail Outlet Dealership LPG Distributorship Recevied Established Received Established 1OCL 2552 538 159 21 HPCL 1107 105 59 4 BPCL 1493 90 65 3


(d) For Retail Outlet - Several steps have been taken to provide equal opportunity to all the applicants. Now the applicants are provided the opportunity to rectify defects in the application and in case of any representation from the applicant with regard to his rejection the same is to be expeditiously disposed of before conducting draw. The system provide equal opportunity of selection to all eligible applicants as the same is based on draw of lots/bidding which is conducted/opened in presence of an outside guest of repute and this process is also video graphed. The above process would help in bringing greater transparency in the dealer selection process.

For LPG Distributorship - The selection of LPG Distributorship is done through ‘Draw of Lots’ and is transparent. In this process several steps have been taken to provide adequate opportunity to all the applicants. The applicants are given opportunity to rectify defects in the application and representations from the rejected applicants are also considered before conducting the draw. Selection is based on draw of lots of all the eligible candidates in presence of an invited guest and the whole process is video graphed.

A grievance redressai mechanism has been formulated for complaints related to selection of LPG distributorships. The complaints related to selection of distributorships are investigated as per the procedure and in case of established complaints, suitable action is taken as per the decision of the competent authority.