DODO MODEL FOR CNG STATIONS

Feb. 12, 2019

On the side-lines of Petrotech 2019, Greater Noida, The Minister of Petroleum and Natural Gas, Dharmendra Pradhan, launched the Dealer Owned Dealer Operated (DODO) model for setting up CNG stations by private players.

About: 

  • Coverage: The guidelines are being introduced in over 150 districts of the country spread across 87 Geographical Areas (GAs) defined by PNGRB, where entities promoted by state run companies are currently operating. 

  • Implementation: Most of the City Gas Distribution (CGD) entities run by central public sector undertakings will execute these guidelines for further setting up of CNG stations on DODO model in the country. 

  • Salient Features of Guidelines: 
    • The entire plot owned by a private owner shall be developed exclusively for setting up of CNG station and allied commercial activities at the discretion of CGD entity. 

    • After selection of the site, the plot owner applicant desirous of setting up CNG station will have to enter into a long-term agreement with CGD entity.  

    • The CNG equipment’s shall be installed and commissioned by CGD entity while adhering to all the statutory rules/guidelines related to fire and safety.  

    • On its part, the dealer will have to arrange all the permissions to setup CNG Station including change of land use, necessary clearance, license, etc. at own expense and cost. 

    • The day to day operation of the equipment as well as of CNG retail outlet shall be the responsibility of the appointed dealer. 

    • The dealer shall be paid commission by the concerned CGD entity as per the sales achieved based on the fixed dealer commission. 



  • Significance: 
    • This will not only reduce the cost of setting up CNG filling stations for CGD entities but will also provide land owners and investors to become partners in this green drive. 

    • It will ensure easy availability of CNG across the country. 



 

Source : PIB