Question 1

What is Biodiesel?

Accepted Answer

Biodiesel is a liquid fuel, technically known as a mono alkyl ester, made from oils and alcohols.
Biodiesel is a renewable fuel that can be produced in any climate using already developed agricultural practices.
Biodiesel is made from renewable resources such as vegetable oils or other types of biomass.
B100 is 100% biodiesel.
Biodiesel is widely available in both its neat form (B100) and in blends with petroleum diesel (for example B2, B5, B20).”

Question 2

Pre-qualification for becoming biodiesel dealer?

Accepted Answer

To become Biodiesel Dealer you need:
Premises – Premises on highways / Road Side of at least 7,000 sq ft (conversion to non-agricultural land for commercial use)
Storage of 30 KL (30,000 Litres)
New Dispensing Unit (Weights & Measures Stamping)
Office with basic amenities
Shop and Establishments license
NHAI permissions (If required)
Fire department permissions.
GST registration

Question 3

Dealer Margin

Accepted Answer

The Dealer Margin depends on the market condition and quantity sold by the dealer during the month.

Question 4

Tax on Biodiesel?

Accepted Answer

Currently, GST is applicable on Biodiesel @ 12%

Question 5

Can one get more than one dealer outlet?

Accepted Answer

Yes, it depends on your performance

Question 6

Investment Requirement for Dealership?

Accepted Answer

Investment of setup of biodiesel pump unit is approx INR 40 Lacs to 50 Lacks (excluding land), depends upon the size of the plot and area for development required. This investment also includes the cost of 20,000 Litre of biodiesel.

Question 7

Responsibilities of a Dealer?

Accepted Answer

Maintain the highest standard of quality.
Do Business as per best business ethics.
Manage the day to day operation of the outlet.

Question 8

Process for Dealership?

Accepted Answer

Submit the application form along with all required documents to our Jaipur Office.
Survey of the site (To check and maintain a minimum distance between two dealers)
Signing the agreement.
Start Station.

Question 9

Any specific permission required?

Accepted Answer

All the basic permissions which are required to start a new business, but no specific permissions are needed other than indicated in pre-qualification of a dealer.

Question 10

Availability of Material?

Accepted Answer

Company will be having a capacity of 100 Thousand KL Per Annum at Rajasthan Plant. With a proposal of extending to 250 thousand KL Per Annum.
The company always maintains inventory at Plant and depot.
Planning to Maintains inventory at Distributor Level in each district.
Company has its own tankers to avoid any delay in distribution.

Question 11

Benefits of Biodiesel?

Accepted Answer

Better engine performance.
Less engine noise.
Better lubrication (100% more than diesel).
Increased engine life.
More pickup (power).
More torque.
Burns cleaner – less wastage.
Lasts longer.
Greater mileage.
No modification in existing infrastructure required.
Renewable source.
Aromatics-free.
Non-explosive
Consistent performance in all driving & weather conditions.
Lower toxicity compared to petroleum diesel fuel.
Safe to handle
Bio-diesel is bio-degradable.

Question 12

Usage of Biodiesel & Normal Diesel?

Accepted Answer

We can use both the varieties of diesel i.e. Bio-Diesel and Normal Diesel at any point. Both are purely interchangeable and can be mixed also.

Frequently Asked Questions