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Richa Mishra

OMCs should phase out the existing temporary COCO retail outlets within a time frame.

A PETROLEUM OUTLET

New Delhi , Oct. 25

Dependents of Operation Vijay (Kargil allottees) and others holding letter of intent for petrol pump retail outlets may soon be allotted one. The State-owned oil marketing companies (OMCs) may now have to phase out their existing temporary company-owned-company-operated (COCO) retail outlets within a time-frame, preferably in a year.

While reviewing the operation of retail outlets of OMCs, the Petroleum Ministry had recently laid down broad parameters on the basis of which companies could finalise their guidelines for operation of COCO retail outlets. The parameters outlined by the Ministry prescribes that while the OMCs may operate permanent COCO retail outlets through their own officers without job contractors or ad-hoc dealers, they should phase out the existing temporary COCO retail outlets within a time-frame.

Phasing out

For phasing out the temporary COCO retail outlets it has been suggested that they first could be offered to the pending letter of intent (LI) holders under the following category — the Kargil allottees, discretionary quota scheme, corpus fund scheme, and other categories as prescribed in marketing plans.

The industry may pool their available temporary COCO retail outlets for offering to the Kargil allottees and discretionary quota scheme. In case, no other LI holder is available, then these dealerships would be advertised for selection under normal process.

In order to provide commercial freedom to the PSU retail companies, post-administered pricing mechanism regime in the petroleum sector, the OMCs were allowed to formulate their own policy and procedure for operating retail outlets.

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