TN has a proven track record among cooperative societies with LPG, Petrol-Diesel Distribution Rights

Union Home and Cooperative Minister Amit Shah’s comments in the Union House on allowing Primary Agricultural Credit Cooperative Societies (PACCS) to engage in retail distribution of petrol/diesel and liquefied petroleum gas (LPG) did not excite participants .

The reason is not hard to find. The Nilgiris Cooperative Marketing Society (NCMS) operates Liquefied Petroleum Gas (LPG) agency business. The National Consumer Co-operative Wholesale Store operates 26 LPG supply units.

An official from the state cooperation ministry pointed out that besides this, there are 58 branches run by different types of cooperative societies, including PACCS for petrol/diesel dealers. The Tamil Nadu Cooperative Marketing Federation (TANFED) as a diversified activity has taken over the dealer business. The federation operates eight petrol and diesel filling stations in Chennai (Kodambakkam and Koyambedu), Cuddalore, Tiruchi, Tirunelveli, Dindigul, Virudhunagar and Thoothukudi in partnership with Indian Oil Corporation.

During 2023-24, the company sold approximately 9,135 KL of petrol and diesel worth Rs 910.9 crore. TANFED’s total turnover is Rs 980.05 crore. In addition, there are 26 shops operated by consumer cooperative wholesale stores; 5 primary consumer cooperatives and 2 consumer cooperative federations.

In a separate reply to the Rajya Sabha on Wednesday, the federal minister noted that the Ministry of Petroleum and Natural Gas had revised the guidelines to make PACCS eligible for LPG distribution rights. As per the Uniform Guidelines for Selection of Liquefied Petroleum Gas Distributors of the Oil Marketing Corporation (OMC), PACC authorized personnel are undergoing training and must pass a pre-commissioning quiz/test with passing marks (80%). Before awarding LPG distribution rights to PACCS, OMC will ensure adequate resources such as storage facilities, initial capital support for efficient and safe operations.

The Union Ministry has also revised its guidelines to give priority to PACCS under Comprehensive Category 2 (CC-2) for selection of dealers in conventional and rural petrol/diesel retail outlets, for which cooperative societies can apply online based on the advertisement published. The reply added that so far, 286 PACCS from 25 states/Union Territories have applied, out of which 26 societies were selected by the OMC.