The year 2020 was supposed to one that propelled Indian economy into the next gear, but what we had to deal with was the novel Coronavirus. The economic losses, shutdown of business operations and various other challenges led to a rise in unemployment.
However, the government has now taken a number of initiatives to revive the curve. In July this year, the government announced its decision to open the fuel delivery sector for the start-ups. Various Indian fuel companies such as Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation have asked for Expression of Interest (EoI) from start-ups willing to enter the sector.
The government had been mulling this move since 2017, and deliberations were underway during the last few years on the various aspects of this move. The landmark decision has numerous benefits for all the stakeholders.
Until now, there were a handful of companies such as Humsafar that had been operational in the field of providing last mile fuel delivery to customers of the state-owned fuel companies. This is a rapidly growing and high value industry which is expected to be worth 1500-2000 crore rupees within the next 18-20 months.
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The landmark decision has numerous benefits for all the stakeholders such as the following.
Legalisation of fuel retail by start-ups
The horizon is now wide open for start-ups with the necessary know how and technology to become a FueEnt (Fuel Entrepreneur). This will not only fill in for the crying need of the consumers but also for PESO laid safe protocols to guide and make the already used makeshift tankers/Bowsers, standard and tech driven.
From just a handful of companies, the market will now be joined by a large number of start-ups. There will be significant investments and capacity building in the sector.
Employment generation
Fuel delivery is a specialised sector that requires companies to invest in technologies, infrastructure and manpower. This is a whole new sector that will now open up for the startups and it will lead to a lot of employment generation for blue collar sector roles. This area was worst hit due to the shutdown of economic activities during the pandemic lockdown and will now get a boost with this move.
Efficiency and growth of fuel market
The move will open the doors for companies to formally invest in technologies and logistics as independent operators. Thus, there will be greater efficiency and last mile connectivity. In the longer run, the move will also lead to better environment sustainability.
Humsafar transports diesel in geo-fenced Bowsers which leave no scope for spillage, pilferage or fuel theft. Company's W&M calibrated automatic Humsafar tankers are used to deliver fuel orders of 100 litres and more. Even the ‘Fuel Humsafar’ app offers features such as live tracking and automated billing which optimises the process.
"Now, such benefits will become more manifest in the diesel delivery sector. Things will continue becoming more accessible, affordable and safe," company's CEO Sanya Goel.
Contact-less delivery
In the wake of the pandemic, a lot of changes have been made to reduce contact in business operations. The social distancing protocols are going to stay for the visible future, and in this context, the move to allow entry of start-ups into the fuel delivery sector will revolutionise things. The consumers will no longer be compelled to visit fuel stations to buy diesel. There will be easy, contact-less and transparent doorstep delivery of diesel to homes, offices and commercial spaces.
Conclusion
The government’s move to allow start-ups into the diesel delivery sector augurs well for the sector as well as the overall economy. The easy availability of diesel will also increase the pace of market expansion and reduce the overall inefficiencies associated with the conventional fuel delivery services. Hopefully, this will be the revolution that Indian fuel delivery ecosystem was eagerly waiting for!