Guidelines for sale of Biodiesel for blending with high speed diesel for transportation purposes

Ministry of Petroleum & Natural Gas has issued Gazette notification No. GSR 728 (E) on 29th June 2017 for amending the Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order dated 19th December 2005. Clause 6 (A) 1 of the amended order states that the Central Government may permit the direct sale of Biodiesel (B100) for blending with high speed diesel to all consumers, in accordance with the specified blending limits and the standards specified by the Bureau of Indian Standards.

In pursuance of the above, the Central Government has notified the guidelines for sale of Biodiesel for blending with high speed diesel for transportation purposes.

Scope

The guidelines shall extend to the whole of India. The guidelines came into force from April 2019.

Guidelines

• Application for permission for retail sale of Biodiesel (B-100) through an outlet by an entity shall be made to the Food and Civil Supplies Department/any other Department authorised for the same by the State/UT Government of the concerned State/UT, where the Retail Outlet is to be set up.
• The permission will be granted exclusively for sale of biodiesel (B-100) only and not for any mixture thereof of whatever percentage.
• Permission for setting up the retail outlet for sale of biodiesel would be subject to the Registration/Approvals/No Objection Certificates as per Annexure from the respective Central/State/UT/Local Government/Authorities in which the retail outlet is located and other concerned authorities mentioned therein.
• This permission will be displayed prominently at the point of sale of Biodiesel.
• Biodiesel to be sold in pursuance of aforesaid permission should be indigenously produced and not imported.
• Separate boards in English/Hindi and Vernacular language of the region should be prominently displayed at the biodiesel retail outlet displaying the percentage of Biodiesel allowed to be blended with diesel in the customer’s automobile tank. Also, there should be clear warning displayed at the biodiesel retail outlet (with above board) that usage of biodiesel with percentage exceeding the prescribed percentage can cause damage to the engine.
• Owner/Operator shall maintain the material balance along with supplier details. The biodiesel retail outlet owner/operator shall make available the same at the retail outlet at all times for inspection by any authority authorised for the purpose either by the concerned State/UT Government and /or Central Government.
• Biodiesel retail outlet owner/operator shall retain samples of at least last three supplies received by them from their suppliers for inspection and/ or testing by any authority authorised for the purpose, as above.
• The biodiesel retail outlet owner/operator shall maintain a permanent record of each and every sale ofbiodiesel made by it in a register which would be updated on a daily basis and be available for inspection at all times. Additionally issuing of bill (in duplicate) for each sale, clearly showing vehicle number and customer name/contact number giving details of quantity sold, rate charged and date and time of sale would be mandatory. (One copy for customer and one for Retail Outlet record.)
• State Government authorities shall have the power to carry out regular inspections of the retail outlets selling biodiesel to ensure that the biodiesel is being made available to the customer in the right quality and quantity, and is not being sold as a standalone fuel for transportation purposes. In case of any sample failure of Biodiesel (B100) being sold, State/ District Administration shall proceed with administrative action on the analogy of the Marketing Discipline Guidelines(MDG) for retails Outlets selling MS (Petrol) and HSD (High Speed Diesel).
• All volume and safety distance norms applicable for Class B Petroleum Products shall be applicable forpumps selling Biodiesel as it is meant for blending with High Speed Diesel which is a Class B Petroleum Product.
• To ensure that the Retail Outlets of Biodiesel are selling only Biodiesel conforming to BIS Standards and not mixture of Biodiesel and Diesel or only Diesel, anti-adulteration cells of Public Sector Oil Marketing Companies along with State Government officials are empowered to inspect, search and seize unauthorized and unscrupulous Biodiesel manufacturing plants, the storage and distribution units and Retails Outlets.
• Mobile labs of Oil Industry will also have the jurisdiction to cover retail outlets selling Biodiesel,manufacturing plants, storage and distribution network of Biodiesel.
• To avoid entry of unscrupulous biodiesel suppliers, a suitable registration system for biodiesel manufactures, suppliers and sellers will be devised at the State/UT Level. Further, State/UT Governments shall maintain a register of all Retail Outlets selling Biodiesel in their respective State/UT
• Any other conditions, which the State/UT Government may deem appropriate for sale of biodiesel as per the prevailing conditions in their respective State/UTs may also be included.
• State/ UT Governments would designate an Appellate Authority to redress complaints related to denial of permission for sale of biodiesel to an applicant.
• Any clarifications in respect of these guidelines shall be made by the Central Government.

Registration/Approvals / NOCs required

1. District Magistrate/District Commissioner on similar lines as is being done for Retail Outlets of Public Sector Oil Marketing Companies
2. Petroleum and Explosives Safety Organisation (PESO) license, as required
3. National/State Highway Authorities
4. Weights and Measures Department of the respective State/UT
5. Food and Civil Supplies Department of the respective State/UT
6. Land use certificate of commercial land from District Administration
7. State Biofuel Boards(wherever existing)
8. GST Registration
9. Fire Department
10. Shops and Establishments Act
11. Environmental Clearance from the Pollution Control Board of the respective State/UT

Source: Ministry of Petroleum and Natural Gas