How to apply Door to Door Diesel Delivery Tender ?

Door to Door Diesel Delivery Tender Apply – Basic Criteria, Requirements, Investment, Profit

Door to Door Diesel Delivery is a start by the Govt of India initiative now Oil marketing Companies (OMCs) are considering recognised Startups to apply for “DDD Resellers” by signing an Agreement with the concerned OMC (ex- IOCL or BPCL or HPCL). Such start-ups is also called as “FuelEnts” (Fuel + Entrepreneurs). So, today in this article you’ll read about Door to Door Diesel Delivery Tender Applying Process Requirements, Documents & Licence and many more.

Door to Door Diesel Delivery is a new business idea that is approved by the government of India. This will increase the industry and internal trade. Ministry of commerce and industry has now promoted this and they are now liking this concept which is doorstep delivery of diesel.

Door to Door Diesel Delivery Tender Apply

Eligible Start-ups registered as “DDD Resellers” will be able to procure HSD directly from supply locations of the OMC or its Retail Outlets, having facility for loading of such Mobile Dispensers. Hence the Startup must have their own PESO compliants Dispenser. This is B2B Business only.

IOCL, BPCL and HPCL recently starts a new initiative that is door-to-door delivery of high-speed Diesel all over India. As we all know that if you want to refuel your car, truck, two-wheeler for any other vehicle which is running on diesel. So, we have to visit our nearest diesel filling station for Diesel Pump.

To do that you have to waste your time as well as money. So, now the Oil Marketing company IOCL, BPCL or HPCL fuel at the doorstep is now started. There is a fuse and considerable demand of stationary comments like generator seeds, earth moving equipment’s also heavy machinery which is used in construction sites and mobile towers. They do not have the resources to store 4 high-speed Diesel. So consumers are demanding to deliver high-speed Diesel at their doorstep.

Also Read: HPCL Petrol Pump Dealership

Also Read: HP Lubricants Distributorship/CFA Selection

 

Demand of Door to Door Diesel Delivery HSD(High Speed Diesel):

There is a considerable demand of HSD for stationary equipment like generator sets, earth moving equipment, heavy machineries used in construction sites, mobile towers, etc. Such Start-ups shall be called “FuelEnts” (Fuel + Entrepreneurs). Capsule advertisement shall be brought by OMCs, seeking application from the interested Start-ups for registration/enrolment as “FuelEnts”.

 

Who can apply for Diesel Delivery Tender?

  1. A company registered under Startup India under category of “DDD Resellers”.
  2. Having participated in Expression of Interest (EOI) of Oil Company.
  3. Full-filled the requirement of oil company and statutory.

 

Basic Criteria for Door to Door Diesel Delivery:                            

  1. Should be Indian.
  2. Age between 21 years to 60
  3. Should able to Invest 30 Lac
  4. Should have Business entity like Private Limited, LLP, and Registered Partnership firm.
  5. Firm Entity registered under Startup India (DPIIT).
  6. Start-ups will be required to register themselves as “DDD Resellers” of Oil Marketing Companies (OMC) and will also be required to sign an Agreement with the concerned OMC.
  7. Should have own Vehicle where mobile dispenser will load.

 

What to decide before you start Door to Door Diesel Delivery Business ?

  • Name of Directors and Share holders. Directors and shareholders can be same person. Minimum 2 Directors/Shareholders in case of Pvt Ltd or LLP and 1 only in case of OPC.
  • Decide Proposed name of the Company. Name approval is subject to availability of the ROC and as per Company’s name approval guidelines. We assist here to choose name.
  • Decide Share Capital amount and % of Share holding among Shareholders. Standard capital we recommend Rs 1 Lakh.
  • Decide the place of Business for Registering your Company.

 

Door to Door Diesel Delivery Investment:

  1. Company Formation, Startup Registration, EOI Submission= 30,000/-
  2. Application Fee= 11800/- (with GST)
  3. Security Deposit = 1,00,000/-

Mobile Bowser of 6000 Liter capacity (Mobile Tanker)

  1. Cost of Tanker (Truck with chasis)= Rs 15,00,000/-
  2. Fabrication Work with 18%GST= Rs 8,85000/- (including 1 Year PESO License)
  3. Vehicle Registration + Insurance= Rs 1,00,000
  4. Diesel Purchase for 6000 liter tanker= Rs 86 per liter in Jharkhand (Rs 5,16,000)
  5. License/ NOC/ Permission= Rs 1,00,000/-

Total Expenditure = Rs 32, 42,800/-

If you want to invest some money and rest will be funded by financial institute.

  1. Vehicle Loan = 13,00,00
  2. Own fund = 19,42,800

Door to Door Diesel Delivery Tender Apply

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Also Read: Shell Petrol Pump Dealership

 

Door to Door Diesel Delivery Sales & Profit margin Estimation:

If you fill your tanker at Depot the margin will be Rs 2.5 per liter.

  1. If your Per day selling = 3000 liter
  2. Working days in a month= 26 days
  3. Total monthly sales capacity= 78,000 liters
  4. Buying & selling trip diesel expenses of tanker= Rs 0.30
  5. Consider average profit margin per day= Rs 2.20
  6. Total monthly gross profit per day will be= 3000 x 2.20 = Rs 6,600/-
  7. Total Monthly gross profit = 6,600 x 26 = Rs 1, 71,600/-

 

Door to Door Diesel Delivery Business Monthly Expenses:

  1. Staff Salary (2 Nos. including driver)= Rs 30,000/-
  2. Monthly EMI (Loan tenure 7 [email protected]%) = Rs 20916
  3. Monthly Tanker maintenance & Fuel = Rs 10,000
  4. Parking rent area = Rs 6000

Total Expenses= Rs 66,916 /-

Total Monthly Net Profit = Rs 1,71,600 – Rs 66,916 = Rs 1,04,684 (This Profit may variable every month)

 

Required Documents for Door to Door Diesel Delivery:

  1. Copy of Self attested Aadhar card, Voter ID, PAN Card.
  2. Copy of Business registration
  3. Authorization declaration.
  4. DSC declaration and Integrity agreement
  5. MSME Registration/Trade license.
  6. DPIIT License Number
  7. GST
  8. SC/ST Certificate

 

License required for Door to Door Diesel Delivery :

  1. License for operation of the mobile dispensers from PESO License.
  2. Certificate for dispensing of fuel from Department of legal Metrology.
  3. Statutory clearance like Vehicle fitness certificate from RTO as per motor vehicle ACT.
  4. GST/VAT as applicable under state/central govt. regulations.
  5. License from Weight & Measurements departments.
  6. Pollution license
  7. Hazardous goods endorsements on Driver’s license.
  8. Public Liability loss Insurance covered by FuelEnt.
  9. Availability of Parking Permission.

Also Read: Kisan Seva Kendra Petrol Pump Dealership

Also Read: JIO-BP Petrol Pump Dealership 2022

 

Process for Becoming Fuel Entrepreneurs(Door to Door Diesel Delivery):

Door to Door Diesel Delivery Tender Apply

  1. Register a company- Pvt Limited/LLP (Limited Liability Partnership)/Partnership.
  2. Obtain PAN, TAN, GST, Udhyam Registration. (Documents required for GST reg.: Certificates of incorporation/Registration certificates and PAN card of the company/LLP/Firm, All directors Photo,PAN, Aadhar email and mobile no., Address proof of business place(Electricity bill with NOC from the owner), Rent agreement if premises on rent)
  3. Register your company at startupindia.gov.in under DDD reseller category.(Certificates of incorporation/Registration certificates and PAN card of the company/LLP/Firm, PAN Card, Working Website, All directors Photo,PAN, Aadhar email and mobile no., Number of Employees including Directors/Partners working, Details Of Business)
  4. Obtain the recognition from Department for Promotion of Industry and Internal Trade (DPIIT).
  5. Participate in the expression of Interest (EOI) issued by OIL marketing Company.
  6. The non-refundable application fees for EOI is Rs 10000+ 18 %GSTe. Rs 11800/-
  7. During the EOI, the startup has to select the loading point i.e. company depot/Retail outlet from the list provided in EOI.
  8. On clarifying the EOI, sign provisional agreement with the respective oil marketing company.
  9. Procure the mobile refueller as per the Peso Guidelines and obtain all necessary license like PESO, Legal metrology, Motor vehicle Act, Tax related, Food and civil supplies etc. within 90 days from the date of provisional agreement.
  10. The total expenditure will be 30 Lakh – 32 Lakh.
  11. On completion of all formalities the FuelEnt Agreement will be signed with 1 lakh security deposit for a period of 10 years.
  12. Start loading the mobile Refueller from designated retail outlet/depot for onward supply at door step.

 

Procedure:

Once FuelEnt paid Application fee & Security Deposit then agreement shall executed between OMC and FuelEnt for a period of ten years.

 

Points to keep in mind to become a Fuel Entrepreneur: 

Selling Price:

Mutually agreed by the diesel reseller and customer.

Change in Constitution:

FuelEnt are not allowed to change the constitution of their company registered at startup Indian as well as with EOI i.e. no changes are allowed in partnership firm, Limited Liability Partnership and change in member of private limited company.

Loading Restriction:

  • 4 mobile dispensers per day from Retail outlet loading facility.
  • No restriction from the supply location i.e. Terminal/Depot.
  • No restriction for multiple loading per day.

Change in supply location:

  • Available but after 12 months from the FuelEnt Agreement.
  • In case of discontinue of Retail outlet assigned for loading of Mobile Dispenser then 12 month will not apply.

Validity and Termination of Agreement:

  • Validity- 10 years and renewable.
  • In case of loading from Retails Outlet, if mobile Dispenser unable to uplift HSD for continuous 90 days then oil company reserve the right to cancel the agreement.
  • Any violation in loading and dispensing SOP.

Addition of Mobile Dispenser:

  • FuelEnt are allowed to add additional Mobile Dispenser at same or other location having mobile dispenser loading facility without going through Expression of Interest again.
  • For New Mobile Dispenser– Signing an addendum to the existing provisional agreement/signing a new provisional agreement.
  • For Mobile Dispenser operating with other OMC– After obtaining NOC from the OMC, subject to completion of one year of operation with OMC.

Parking:

  • The FuelEnt shall ensure that all the mobile dispensers are being parked at the PESO approved parking space.
  • FuelEnt shall arrange the parking for mobile dispenser as per PESO requirement at his own cost.

Usage of company logo/Brand:

  • Not authorized to use company logo/brand in any form. The FuelEnt shall not represent him/her self as company representative.
  • Cannot give any advertisement or press release or make any statement in any media using company name, logo trademark, brand etc without written permission from company.

 

Door to Door Diesel Delivery Related Video:

Also Read: Hindustan Biodiesel Pump Dealership Apply

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Door to Door Diesel Delivery Tender:

To check the currently running tender for the door to door diesel delivery, you have to visit the company official website which link is given below:

 

DOOR TO DOOR DELIVERY (DDD) OF HIGH SPEED DIESEL Brochure:

To view the official brochure click the link below: https://iocl.com/Talktous/PDF/DDD_Policy_20.02_2020_for_Portal.pdf

 

FAQ(Frequently Asked Question):

Q. What is the Doorstep Diesel Delivery ?

Ans: Door to Door Diesel Delivery is a start by the Govt of India initiative now Oil marketing Companies (OMCs) are considering recognised Startups to apply for “DDD Resellers” by signing an Agreement with the concerned OMC (ex- IOCL or BPCL or HPCL). Such start-ups is also called as “FuelEnts” (Fuel + Entrepreneurs).

Q. What is the work in Door to Door Diesel Delivery Business?

Ans: As we all know that if you want to refuel your car, truck, two-wheeler for any other vehicle which is running on diesel. So, we have to visit our nearest diesel filling station for Diesel Pump. To do that you have to waste your time as well as money. So, now the Oil Marketing company IOCL, BPCL or HPCL fuel at the doorstep is now started. There is a fuse and considerable demand of stationary comments like generator seeds, earth moving equipment’s also heavy machinery which is used in construction sites and mobile towers. They do not have the resources to store 4 high-speed Diesel. So consumers are demanding to deliver high-speed Diesel at their doorstep.

Q. If anyone start this business then where they supply the diesel ?

Ans: So, if anyone get this tender then they can supply and make his customers to the educational institution, Hospitals, Apartment, Flat, Mall, Heavy Vehicle and supply to the diesel vehicle.

Q. Can we Deliver both Diesel and Petrol in this Business ?

Ans: No, in the Door to Door delivery Business you can only supply Diesel.

Q. How much we have to pay as security fee?

Ans: On completion of all formalities the FuelEnt Agreement will be signed with 1 lakh security deposit for a period of 10 years.

Q. From where the fuel entrepreneur take the loading facilities of mobile dispensery ?

Ans: When you’ll get this door to door diesel delivery tender then you can get all information about the  loading of Mobile Dispenser by the officer or you can see while filing the tender.

Q. Which Licence is required for operating door to door diesel delivery ?

Ans: Required Licence for operating door to door diesel delivery is given below:

  • License for operation of the mobile dispensers from PESO License.
  • Certificate for dispensing of fuel from Department of legal Metrology.
  • Statutory clearance like Vehicle fitness certificate from RTO as per motor vehicle ACT.
  • GST/VAT as applicable under state/central govt. regulations.
  • License from Weight & Measurements departments.
  • Pollution license
  • Hazardous goods endorsements on Driver’s license.
  • Public Liability loss Insurance covered by FuelEnt.
  • Availability of Parking Permission.

Q. What is the total investment for the door to door diesel delivery ?

Ans: If you want to start or new in this business then you need approximate INR 30 lakh – 32 lakh to start Door to Door Diesel Delivery.

  • Company Formation, Startup Registration, EOI Submission= 30,000/-
  • Application Fee= 11800/- (with GST)
  • Security Deposit = 1,00,000/-

Mobile Bowser of 6000 Liter capacity (Mobile Tanker)

  • Cost of Tanker (Truck with chasis)= Rs 15,00,000/-
  • Fabrication Work with 18%GST= Rs 8,85000/- (including 1 Year PESO License)
  • Vehicle Registration + Insurance= Rs 1,00,000
  • Diesel Purchase for 6000 liter tanker= Rs 86 per liter in Jharkhand (Rs 5,16,000)
  • License/ NOC/ Permission= Rs 1,00,000/-

Total Expenditure = Rs 32, 42,800/-

Q. What is the profit in the doorstep diesel delivery ?

Ans: If you fill your tanker at Depot the margin will be Rs 2.5 per liter, but the margin may be different according to time and location, which are given below:

  • If your Per day selling = 3000 liter
  • Working days in a month= 26 days
  • Total monthly sales capacity= 78,000 liters
  • Buying & selling trip diesel expenses of tanker= Rs 0.30
  • Consider average profit margin per day= Rs 2.20
  • Total monthly gross profit per day will be= 3000 x 2.20 = Rs 6,600/-
  • Total Monthly gross profit = 6,600 x 26 = Rs 1, 71,600/

Q. What is the monthly expenses in the Door to door Diesel Delivery ?

Ans: Monthly expenses for operation are given below:

  1. Staff Salary (2 Nos. including driver)= Rs 30,000/-
  2. Monthly EMI (Loan tenure 7 [email protected]%) = Rs 20916
  3. Monthly Tanker maintenance & Fuel = Rs 10,000
  4. Parking rent area = Rs 6000

Total Expenses= Rs 66,916 /-

Total Monthly Net Profit = Rs 1,71,600 – Rs 66,916 = Rs 1,04,684 (This Profit may variable every month)

Door to Door Diesel Delivery Tender Apply

 

We hope that you would have liked reading this blog post on Door to Door Diesel Delivery in India. For more such informative articles, keep visiting YMW Solution.

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