PACS petrol bunks to be converted as retail outlets

As the Union government accepted regular retailing, societies have begun modernization works to meet the specifications of petroleum companies.

Karimnagar: Primary Agricultural Cooperatives Societies (PACS) have decided to convert its petrol bunks into retail outlets since the union government scrapped all subsidies to bulk consumers. In this regard, PACS authorities have decided to modernize the old and closed fuel stations by spending about Rs 40 to Rs 50 lakh on each bunk with the support of NABARD.

It is mandatory for retail outlets to follow some specifications. Fuel stations must be roadside covered with surrounding walls and tiled floor. It must be clearly visible to consumers. Besides a separate room, there must be a generator, air filling machine, water, toilets and other facilities.

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As the union government accepted regular retailing, societies have begun modernization works to meet the specifications of petroleum companies.

While the works of Pothgal in Mustabad mandal and Chinna Kalwala of Sultanabad mandal fuel stations have reached the final stage, works in remaining stations will be taken up in the next one month period.

In order to provide quality and quantity petrol and diesel to farmers and its members at cheaper price, PACSs have opened petrol bunks in the state. About 55 filling stations operated by PACS in Karimnagar, Medak, Hyderabad and other districts.

A majority of 34 filling stations are there in Karimnagar alone as against 62 PACSs in the erstwhile Karimnagar district.

In the wake of an increase in the price of petroleum products following the Russia-Ukraine war, the central government scrapped all subsidies to bulk consumers such as PACS, RTC, Singareni and others across the country to reduce the burden.

Unable to spend Rs 20 to Rs 30 additional amount than that of commercial operators to purchase each liter from petroleum companies, PACS have closed their filling stations in January 2022.

As a result, farmers and members of PACS were forced to travel 10 to 20 kilometers away from their villages and shell out huge amounts to get diesel and petrol.

To find a solution to the issue, PACS made representation to the union Ministry of Cooperation and other officials in the union government expressing willingness to convert their fuel stations into retail outlets. In this regard, TSCAB Chairman Konduru Ravinder Rao, who is also the chairman of NAFSCOB, also gave representation to the union Minister of Cooperation Amit Shah.

Responding positively to the representation, the union government gave an opportunity to convert all bulk filling fuel stations into retail outlets.

Speaking to Telangana Today, Ravinder Rao said that NABARD has come forward to provide a loan at lower rate of interest (4 percent) to modernize fuel stations under agriculture infrastructure development fund (AIDF). Under AIDF, NABARD usually provides loans for the construction of godowns, rice mills, super markets and others.

They have adjusted petrol bunks modernization in AIDF. Earlier, PACS used to supply fuel to farmers and its members without making any profits. Sometimes, societies had to bear losses. Hereafter, such a situation would not arise since petroleum companies would give a percentage to PACS, he informed.