Petrol pump for ex-servicemen — how the 8% quota really works

Who is eligible — in this order

DGR lists the eligibility priority for the quota like this:

1. Widows/dependants of those who died in war
2. War-disabled, or ESM disabled due to causes attributable to or aggravated by military service
3. Widows/dependants of defence personnel who died in harness due to attributable causes
4. ESM disabled in peace due to attributable causes
5. Able-bodied ex-servicemen

If you are an able-bodied ESM, be aware you are in the last priority category — real, but behind the casualty and disability categories.

The actual procedure, step by step

1. The oil company picks the locations — not you, not DGR

   Locations for new retail outlets and LPG distributorships are identified by the oil company after a feasibility study. You cannot apply for a pump where none is advertised.

2. Watch the advertisements

   Requirements for a particular locality are advertised in newspapers and on the oil company's website (Indian Oil, BPCL, HPCL). That advertisement — not any middleman — is the start of the process.

3. Apply directly to the oil company

   The application for the advertised location goes straight to the oil company, in the form its brochure prescribes. Fees, deposits and land/finance requirements are in the company's own brochure for that advertisement — they vary, and no outside figure should be trusted over the brochure.

4. Apply to DGR for the eligibility certificate — at the same time

   DGR's page says to apply for the eligibility certificate simultaneously. The certificate must be submitted to the oil company in original at the time of selection. The application forms and guidelines are on dgrindia.gov.in under Schemes → Retail Outlet Dealership.

5. Selection is a draw of lots

   In DGR's own words: "The final selection is done through draw of lots by the oil company and office of DGR has no say in it." Hold on to that sentence — it is your best protection against anyone selling "guaranteed" allotments.

The other route: manage a COCO outlet

Company Owned Company Operated (COCO) outlets are offered to retired Defence officers and JCOs to manage on contract, for a maximum of three years, across India. Conditions from the scheme page: not above 60 years of age at the time of sponsorship, and a bank guarantee as per the company's requirement. The oil company pays ₹30,000 per month fixed plus an incentive on the sale of oil products. Officers are sponsored through DGR; JCOs through their respective Rajya Sainik Boards. This is management income, not ownership — a different bargain from a dealership, and a faster one.

Protect yourself

• No one can "arrange" an allotment — the selection is a draw of lots. Paying an agent buys nothing but risk.
• Every figure that matters — application fee, deposits, land and investment — lives in the oil company's brochure for that specific advertisement. We deliberately quote none here, because they change per advertisement.
• Applications and certificates are made on official websites and offices only. If a "processing charge" is demanded on a private account, walk away.

Questions and answers

What is the petrol pump quota for ex-servicemen?

The Ministry of Petroleum and Natural Gas reserves an 8% quota in oil product agency distributorships for eligible Armed Forces personnel — retail outlets (petrol/diesel) under the CC1 category and LPG distributorships under the GP category. This is stated on DGR's official scheme page.

Who gets priority under the quota?

DGR's scheme page lists the eligibility in this order: widows/dependants of those who died in war; war-disabled or ESM disabled due to causes attributable to or aggravated by military service; widows/dependants of personnel who died in harness due to attributable causes; ESM disabled in peace due to attributable causes; and then able-bodied ex-servicemen.

Can DGR allot me a petrol pump?

No — and this is the single most important fact. DGR's own page says the final selection is done through a draw of lots by the oil company and the office of DGR has no say in it. DGR only issues the eligibility certificate. Anyone claiming they can get an allotment done — for a fee — is describing a process that does not exist.

How do I apply for a petrol pump under the ex-servicemen quota?

Watch the oil companies' advertisements — locations are identified by the company after a feasibility study and advertised in newspapers and on the company's website. Apply directly to the oil company for that location, and simultaneously apply to DGR for the eligibility certificate, which must be submitted to the oil company in original at the time of selection.

Is there a scheme where I can run an outlet without owning it?

Yes — Company Owned Company Operated (COCO) outlets are given to retired officers and JCOs to manage on contract for up to three years. The manager must not be above 60 at the time of sponsorship and must furnish a bank guarantee as per the company's requirement; the oil company pays ₹30,000 per month fixed plus an incentive on sales. Officers are sponsored by DGR; JCOs through their respective Rajya Sainik Boards.

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