An Indane gas distributorship allows you to supply LPG (cooking gas) cylinders to residential, commercial, and industrial users within a defined territory under the Indian Oil Corporation Ltd (IOCL) brand – one of India’s most trusted fuel companies.
You operate as a licensed distributor with a godown, office, and delivery vehicles, supplying Indane cylinders to customers.
Types of Indane Distributorships :
- Urban/Rural Domestic LPG Distributor (D-LPG)
- Rajiv Gandhi Gramin LPG Vitrak (RGGLV) – For rural and remote areas
- Distributor for Non-Domestic LPG (NDNE) – For commercial use
- LPG Godown/Dealer Point only (limited scope)
Investment Required :
| Component | Approx. Cost (₹) |
|---|---|
| Application Fee | ₹5,000 – ₹10,000 |
| Land (buy or lease) | ₹10 – ₹30 Lakhs |
| Godown & Office Setup | ₹10 – ₹15 Lakhs |
| Delivery Vehicles | ₹5 – ₹10 Lakhs |
| Security Deposit (to IOCL) | ₹2 – ₹5 Lakhs |
| Working Capital (Stock, Ops) | ₹10 – ₹15 Lakhs |
| Total Investment | ₹30 – ₹60 Lakhs |
Investment varies by location, territory size, and whether you own land or lease it.
Monthly Income & ROI :
| Particular | Estimated Range |
|---|---|
| Cylinders sold/month | 3,000 – 10,000+ |
| Profit per cylinder | ₹30 – ₹50 (approx.) |
| Gross Monthly Income | ₹1 Lakh – ₹4 Lakhs |
| Monthly Expenses | ₹60,000 – ₹2.5 Lakhs |
| Net Monthly Profit | ₹40,000 – ₹1.5 Lakhs+ |
| ROI Timeframe | 2 – 3 years (on full investment) |
Monthly Expenses :
| Expense Category | Approx. Monthly Cost |
|---|---|
| Staff Salary (5–10 people) | ₹30,000 – ₹80,000 |
| Godown & Office Rent (if leased) | ₹20,000 – ₹50,000 |
| Maintenance & Utilities | ₹5,000 – ₹15,000 |
| Delivery & Fuel | ₹10,000 – ₹30,000 |
| Miscellaneous/Admin | ₹5,000 – ₹20,000 |
| Total Expenses | ₹60,000 – ₹2.5 Lakhs |
Eligibility Criteria :
1. Age: 21–60 years
2. Education: Minimum 10th pass (Rural), 12th pass (Urban)
3. Citizenship: Indian citizen
4. Financial Capacity: ₹30–₹50 Lakhs net worth (urban)
5. Land: Own/lease land for godown as per explosive safety norms
6. No Criminal Record and not a current LPG distributor for another OMC (IOCL, HP, Bharat)
Land Requirement :
- Godown:
- Rural: ~1000 sq. m
- Urban: ~1200 sq. m
- Must comply with PESO (Petroleum & Explosives Safety Organization) norms
- Showroom/Office:
- At least 10 x 10 ft in a market-accessible location
IOCL will inspect and approve both land and building before final selection.
How to Apply for Indane Distributorship :
Step-by-Step Process:
1. Check Official Notifications
- Visit https://www.lpgvitarakchayan.in
- Look for advertisements for distributorships in your region
2. Register and Apply Online
- Create an account, fill application, and upload documents
- Pay non-refundable application fee (₹5,000–₹10,000)
3. Draw of Lots / Interview
Final candidates are selected via lottery (for RGGLV) or interview for others
4. Field Verification & Agreement
- Land inspection, safety compliance
- Execute distributorship agreement with IOCL
5. Start Operations
- Set up infrastructure, recruit staff, begin LPG delivery
Que: Is Indane Distributorship Profitable?
Yes, if you manage territory well, ensure efficient delivery, and maintain good customer service.
With a ₹40–₹60 lakh investment, you can generate ₹40,000 to ₹1.5 lakh/month profit and break even in about 2–3 years.
Key Advantages :
- Trusted government-backed brand
- Constant demand for LPG in homes & businesses
- Income grows with territory expansion
- Recurring income & government-regulated margins
- Long-term, stable business
Key Challenges :
- High initial capital + land requirement
- Must meet strict safety norms (PESO)
- Low margins per cylinder
- Labor-intensive business
- Periodic inspections and regulatory compliance
Checklist of Required Documents :
| Document Type | Required |
|---|---|
| PAN Card & Aadhaar Card | ✅ Yes |
| Passport-size Photos | ✅ Yes |
| Educational Certificates (10th/12th) | ✅ Yes |
| Land Ownership or Lease Documents | ✅ Yes |
| Property Tax Receipt | ✅ Yes |
| Site Map for Godown (PESO norms) | ✅ Yes |
| Financial Statements/ITR (3 years) | ✅ Yes |
| Bank Statement (last 6 months) | ✅ Yes |
| NOC from Municipality | ✅ Optional |
| Affidavit (No criminal record) | ✅ Yes |
| Experience Certificate (if any) | Optional |
Team & Staffing:
- 1 Manager
- 1 Clerk
- 2 Delivery Boys
- 2 Drivers
- Security Guard
Summary Table :
| Factor | Details |
|---|---|
| Investment | ₹30 – ₹60 Lakhs |
| Monthly Income | ₹1L – ₹4L (Gross) |
| Net Profit | ₹40K – ₹1.5L+ |
| ROI Period | 24 – 36 months |
| Application Site | lpgvitarakchayan.in |
Frequently Asked Questions :
Q1: Can I apply if I don’t own land?
👉 Yes, leased land is allowed with a valid long-term lease.
Q2: Can I apply for more than one location?
👉 No, one application per advertisement/location is allowed.
Q3: How long does selection take?
👉 Typically 3–6 months depending on the draw and inspection stages.
Q4: Are loans available for this business?
👉 Yes, many banks offer business loans and term loans for distributorship setup.
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