The government has decided to allow Shell India Private Limited (SIPL), a subsidiary of the Shell group of companies, to market transportation fuel in India.
Shell will now be able to set up its petrol pumps all over India after three decades. Shell was nationalised in 1972 and became Bharat Petroleum Corporation Limited.
The authorisation is, however, subject to the company furnishing a Rs 500 crore bank guarantee to the government.
More From This Section
This will go towards fulfilling its commitment of investing Rs 2,000 crore in building infrastructure in the hydrocarbon sector. SIPL will also have to stick to the yearly investment target set by the government.
The company will also be required to set up 11 per cent of its retail outlets in far-flung areas, according to an official press release issued here today. SIPL plans to set up around 2,000 retail outlets across the country.
The company informed the government that it would prefer to source its supplies from domestic refineries. It also plans to make use the installations and depots of public sector oil companies in the country.