How to Start a Gas Dealership Business in India

Introduction on how to start a gas dealership business in India

The Central Government of India has taken a novel step to spread the availability of LPG gas connections for all the people, by allowing Gas Agency Dealership or LPG distributorship in India to all the categories under the scheme PradhanMantriUjjwala Yojana.

A guide on how to start a gas dealership business in India

Under this scheme, people can avail of the LPG distributorship or Gas Agency dealership from the Indian based companies like LPG/HP/INDANE/RELIANCE/Bharat companies.

If you are interested to take the gas agency dealership or distributorship you need to follow the below procedures-

LPG distributorship formats under this initiative

Firstly you need to decide the type of distributorship from any one of the top Indian oil companies. These include HP, Bharatgas, and Indane which can be applied via LPG VitrakChayan. Now, coming to VitrakChayan is a web portal where you can apply for the distributorship which is launched by the government of India to ensure the transparency to issue the dealership.

There are 4 formats of LPG distributorship which were introduced by the government of India, based on the preferred location of the applicant. This classification was done based on the occupational areas. The four formats list includes SheheriVitrak, RurbanVitrak, GraminVitrak, and DKV (DurgamKshetriyaVitrak) which were described below-

SheheriVitrak: This LPG Operation is for urban areas based on the census report in 2011. The LPG distributorship is carried out in the urban areas within the municipal limits of the cities in India.

RurbanVitrak: In this the LPG distributor which is located in the urban area where the supply of LPG is distributed to all the villages that comes within 15 Km from the municipal areas.

GraminVitrak: In this the LPG supply, the supply will be within the rural area limits according to census data of 2011.

DurgamKshetriyaVitrak (DKV): This is for distributing in hilly regions, forest areas, and so on. Mostly in Gramin and Rurbanvitrak as it is not possible to establish the center in these DKV areas.

How to apply for a gas agency dealership?

To apply for the LPG distributorship, the prescribed 4 formats need to follow the simple procedures. As per the rule of the government of India, there is a separate portal called LPG VitarakChayan for applicants to apply for LPG distributorship authority by visiting the website After visiting this website, you need to register on the home page of LPG VitarakChayan. The application form for LPG VitarakChayan has the basic information which includes name, address, email id, login passwords, and other details.

In the next step, you need to log in again by entering the details, which were given while registering on the website. Make sure that you have entered the correct email id and password which you have given while registering and form filling. Then you can enter the details and apply for a selective LPG distributor.

The applicant needs to look for the heading “Notice for Appointment of LPG Distributors – State Name” by clicking the link, based on the place and the state. Next, you need to decide the particular place in which you wish to start the LPG distributorship.

So, you need to select the location name where you want to start the LPG dealership point and check the availability. While filling the details in the form you need to be careful in providing all the details when you fill online. If you are applying offline then you need to take the soft copy and should sign on it. After submission of the application form successfully by clicking the submit button present at the bottom of the web portal page.

Eligibility criteria to start a gas dealership business in India

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Eligibility Criteria to apply for LPG Distributorship.
Eligibility Criteria to apply for LPG Distributorship.
  • The applicant should be an Indian citizen and should reside in India; the applicant should have a minimum qualification of 10th pass from a recognized board.
  • The applicant should have an age that ranges from 21 to 60 years with respect to the date of the advertisement released. But there is no age restriction for freedom fighters to apply for the LPG dealership.
  • The applicant should not be a family member or any other blood relative to the working employee of OMC as on the date of application.
  • The applicant should have a well-defined space for constructing godown prior to the last date of the application invited for LPG distributorship.

Major requirements to start an LPG gas dealership business

Godown for storage of LPG in cylinders

LPG Distributor should have the godown for storage which is properly approved and licensed by Chief Controller of Explosives of Petroleum and Explosives Safety Organisation (PESO) for the storage purpose of

8000 kg LPG in cylinders (Sheheri and RurbanVitrak),

5000 kg LPG in cylinders (GraminVitrak)

3000 kg LPG in cylinders (DurgamKshetriyaVitrak (DKV).

The applicant must also own a plot of land of minimum dimensions

25 m x 30 m (it should be within 15 km from municipal/ village/town limits of the location offered in the same state) (Sheheri and RurbanVitrak)

21 m x 26 m (it should be within 15 km from advertised location) (GraminVitrak)

15 m x 16 m (it should be within the village/cluster of village limits accordance to advertised location) (GraminVitrak)

The land that is taken for godown construction must be plain, in one contiguous plot, and should be free from live overhead power transmission or telephone lines. Drainage/ Canals should not be seen passing through the plot.

The selected candidate must keep in mind that any weather motorable approach road of at least 2.5 m in width should be made available to give access to LPG Cylinder Truck to the godown / LPG Godown. In case of a private road which is connecting to the Public Road, the same should be either owned/registered lease or having a right of way from the owner(s) of the land.

Showroom for LPG dealership in India

A Showroom of about dimensions like 3 meters by 4.5 meters as per the standard layout should be made in the store located in the advertised location that should be in accordance with the municipal/town/village limits of the place. In the case of locality, it is also stated under the column of ‘location’ in the advertisement for LPG distributorship, a showroom of at least outer dimensions with 3 meters by 4.5 meters as per the standard layout should be there in a shop/land in the ‘locality’. The showroom must be easily accessible to the general crowd through a normal approach road.

The proper infrastructure for the provision of home delivery of LPG cylinders 

Apart from the godown for storing the purpose of LPG cylinders and showroom, delivery vehicles/trucks are necessary to deliver LPG cylinders to customers in the authorized place of operation.

List of needed documents to start a gas dealership business
  • Applicant must give a notarized affidavit with their applications and the self-attested photocopies of either of these proofs School TC, DOB certificate, and Passport or PAN card.
  • The application should be submitted along with the self-attested educational certificate which could be Xth or any equivalent class completion certificate.
  • Also, the land documents copies must be submitted with the self-attestation of the applicants. Documents such as gift deed, sale deed, lease deed with a minimum time duration of about15 years are necessary.
  • For SC/ST applicants, it is mandatory to submit the relevant caste proof letter by proper authentication from the appropriate government officials.

Application fee for applying for LPG distributorship

The below-shown table will explain to you the application details for all four categories. Meanwhile, the application fee for SheheriVitrak and the RurbanVitrak are similar; similarly, Vitrak Locations and DurgamKshetriyaVitrak locations are mostly the same.

LPG Distributorship Location Caste Category Non-Refundable Application Fee
SheheriVitrak&RurbanVitrak Open Rs. 10,000
OBC Rs. 5,000
SC/ST Rs. 3,000
GraminVitrak&DurgamKshetriyaVitrak Open Rs. 8,000
OBC Rs. 4,000
SC/ST Rs. 2,500


How the selection process carried out?

Application is invited for LPG distributorship through the online portal of LPG VitrakChayan, those applicants who are fit and eligible after proper state-wise sort out will be chosen based on the lucky lottery draw procedure.

The names of the selected applicant will be announced on the official website of the LPG VitrakChayan under the governance of the Indian government.

Where to view the chosen applicant list?

By visiting the homepage one can locate by checking the list of selected applicants that are categorized state wise. By clicking the correct link, applicants can verify if their names are shortlisted or not.

With this type of stringent initiative, the government of India helps to provide petroleum and LPG connections in an easy way for all the citizens of India, and also it will surely enhance the employment opportunities to the people in rural and even in cities.

LPG/HP/INDANE/RELIANCE gas agency dealership business

The correct procedure to install a new Gas agency or distributorship is so easy. People must acquire all the necessary document which is detailed in the previous section. They must have about Rs. 30-50 lakhs as capital. They should have at least 6000 square feet of land for setting up a godown. Even must acquire space for front end operations for office purpose. People can visit that office for obtaining a new connection or other allied purposes. That is the reason we must have an office for the business you are planning to start. The provisions that you keep for your consumer will aid to enhance the business by building the customer base.

People must register online to apply for the gas agency. After filling the application form one of our officials will contact them. In case the application is selected then a confirmation message is sent from the company. For further steps, the agency executive will guide all the necessary things. A minimum of 30 to 40 days will be taken for doing the rest of the things.

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