In order to expand the area of activities undertaken by Primary Agricultural Cooperative Societies (PACS), thereby making them financially strong and sustainable, they have been allowed to apply for LPG Distributorships. Ministry of Petroleum & Natural Gas has amended its guidelines to make PACS eligible for LPG distributorship.

PACS, with their extensive grassroots network and trust among rural communities, are well-positioned to bridge the gap in LPG distribution in remote regions. This initiative not only ensures wider coverage of LPG supply but also reduces dependency on distant distributors, promoting convenience for rural households.

As per the “Unified Guidelines for Selection of LPG Distributorships” of Oil Marketing Companies (OMCs), person authorized by PACS is given training and has to clear pre-commissioning quiz/ test by scoring qualifying marks that is 80%. Adequate resources, such as storage facilities, initial capital support, etc. are ensured by OMCs before giving LPG distributorship to PACS, so that operations are conducted efficiently and safely.

The introduction of LPG distribution through PACS supports rural households by providing a cleaner, healthier alternative to traditional cooking methods like firewood, reducing health risks and environmental degradation. This initiative helps strengthen PACS by creating additional revenue streams and enhancing their financial sustainability. Farmers get benefit directly from convenient access to LPG, saving time and labor, which can be redirected toward productive agricultural activities.

This was stated by the Minister of Cooperation, Shri Amit Shah in a written reply to a question in the Rajya Sabha. 

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RK/VV/ASH//RR/PR/PS/2572