News Detail

<p style="margin-left:0in; margin-right:2.9pt; text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">MoPNG had advised Oil Companies to setup large format ROs on highways keeping in view the requirements and aspirations of highway travelers comprising of both tourists and truckers. Subsequently, in view of the impending deregulation, BPCL had taken initiative to differentiate itself from the competition in Retail. For the purpose, model stations show casing new initiatives in Sales, Customer Service Standards and Modern Facilities were developed in major Metro cities like Delhi, Mumbai, Chennai, etc. These outlets are run by BPCL as permanent Company Owned Company Operated (COCO) by appointing Service Providers.</span></span></span></p> <p style="margin-left:.95pt; margin-right:2.65pt; text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Temporary COCOs/Ad-hoc ROs are a result of termination of existing dealerships due to issues related to violations of DPSL agreement / Marketing Discipline Guidelines. Also, at times they are generated due to ongoing court cases because of dealership / site security issues.</span></span></span></p> <p style="margin-left:1.45pt; margin-right:1.95pt; text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Recognizing the above facts, MoPNG issued broad guidelines and advised OMCs to formulate Policy for appointing Labour contractors (Service providers) to run the Permanent COCOs and offer and hand over Ad-hoc ROs/Temporary COCOs to the pending LoI holders including Corpus Fund category.</span></span></span></p> <p style="margin-left:1.95pt; margin-right:1.7pt; text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">We have submitted the detailed Policy on Criteria and Selection of Service Provider for operating permanent COCO Retail Outlets to MoPNG and MoPNG had advised us to implement the policy submitted by us in totality.</span></span></span></p> <p style="margin-left:2.4pt; margin-right:0in; text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">As advised by MoPNG , BPC has been offering Ad-hoc ROs/Temporary COCOs to pending LoI holders including Corpus Fund category adopting a transparent process for allotment of such Ad-hoc ROs/Temporary COCOs including conditional allotment of those COCOs having court cases but without any Stay Order.</span></span></span></p> <p style="margin-left:2.4pt; margin-right:.5pt; text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Subsequently, MoPNG amended certain provisions of Marketing Guidelines in respect Retail Outlets. One of the amendments pertained to liquidating pending LoIs pertaining to SC/ST category by giving them a onetime option to arrange land at a place of their choice anywhere in the country irrespective of the State / class of market, subject to the offered land meeting techno-commercial viability norms. As such this option has been given to all the eligible LoI holders of SC/ST category. Further, MoPNG has approved extension of this period for further period up to 11.04.2014.</span></span></span></p> <p style="margin-left:2.4pt; margin-right:.5pt; text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">A detailed framework have been prepared on policy note on divestment of temporary COCOs in line with the broader framework advised by MoPNG and the same is submitted for Board&#39;s approval as desired MoPNG.</span></span></span></p> <p style="margin-left:2.4pt; margin-right:.5pt; text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source:SNP Infra Research</span></span></span></p>