TN has a track record in co-operatives with LPG, Petrol-Diesel dealerships

Union Home Affairs and Cooperatives Minister Amit Shah’s observations in the Rajya Sabha on allowing Primary Agriculture Credit Cooperative Societies (PACCS) to take over retail dealerships of Petrol/Diesel and Liquefied Petroleum Gas (LPG) dealerships did not cheer the players. Co-operative sector in Tamil Nadu.

The reason is not far to seek. Nilgiri Co-operative Marketing Society (NCMS) has been running Liquefied Petroleum Gas (LPG) agency business. The State Consumer Cooperative Wholesale Shop has been operating 26 LP gas supply units.

In addition, 58 outlets are being operated by different types of cooperatives, including PACCS, for petrol/diesel dealerships, a State Cooperation Department official pointed out. Tamil Nadu Cooperative Marketing Federation (TANFED), as a diversification move, has taken over dealerships. In association with Indian Oil Corporation, the federation is operating eight petrol and diesel distribution units at Chennai (Kodambakkam and Koyambedu), Cuddalore, Tiruchi, Tirunelveli, Dindigul, Virudhunagar and Thoothukudi.

In 2023-24, it sold around 9,135 KL of petrol and diesel worth Rs 91.09 crore in 2023-24. Total business turnover of TANFED was ₹ 980.05 crore. Besides, 26 banks are run by Consumer Cooperative Wholesale Shops; By five primary consumer cooperative shops and two consumer cooperative federations.

In a separate reply in the Rajya Sabha on Wednesday, the Union minister pointed out that the Ministry of Petroleum and Natural Gas had revised the guidelines to make PACCS eligible for LPG distribution. As per “Integrated Guidelines for Selection of LPG Distributors” of Oil Marketing Companies (OMCs), the persons authorized by PACC were being trained and had to pass the pre-commission quiz/examination by scoring qualifying marks – 80%. Adequate resources, such as storage facilities, initial capital support shall be ensured by OMCs for efficient and safe operation before LPG distribution to PACCS.

The Union Ministry had also revised its guidelines to give preference to PACCS under Combined Category-2 (CC-2) for selection of dealers for regular and rural retail petrol/diesel outlets, for which cooperatives can apply online as per the advertisements issued. by OMCs. So far, 286 PACCS had applied from 25 states/UTs, out of which 26 societies were selected by the OMCs, the replies added.

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