Land on lease for fuel stations

Context:

• Rajasthan government has taken a policy decision to allow government oil companies to set up petrol and diesel pumps, CNG stations and electric vehicle charging stations on the vacant land of all depots, workshops and bus stands of the State Transport Department (RSRTC).
• This is part of the state government’s effort to increase non-operational income in addition to bus operation by Rajasthan State Road Transport Corporation management.

Key Points:

• It has been decided to provide land on lease for around 20 months depending on the conditions of the contract.
• As per the directions issued by the government, priority will be given to the government oil companies which includes IOCL, HPCL, BPCL for setting up retail outlets of petrol and diesel pumps, CNG stations and electric vehicle charging stations on lease rent basis.
• The Roadways department has a lot of vacant land across the state and this would help in not only increasing the revenue of the roadways but will also ensure better facilities.
• The fuel pumps and charging stations will be set up on the land which is close to the main roads and can accommodate all facilities which are required to run the service stations.
• Roadways will lease the land for 19 years and 11 months. According to the rules of the Public Works Department, the rent of the said land will be fixed on the basis of 9% per annum of the existing DLC rate per square meter and the rent amount will be increased at the rate of 3% per annum.
•  The corporation has been facing a loss of approximately Rs 65 crore per month and various measures are being taken to overcome this including more efficient use of diesel.
• Due to efficient usage of the diesel, the roadways had succeeded in saving around Rs 2 crore per month.
• Now this move by the government will generate extra revenue for the department in addition to enhancing operational efficiency in public services.