In 2025, several Indian manufacturing and infrastructure projects faced delays of 45 to 120 days because PESO approval was not obtained before installing petroleum tanks, pressure vessels, or gas cascades. In some cases, investments of ₹10–₹80 crore remained blocked due to one missing approval under Petroleum Rules, 2002 or SMPV Rules, 2016.
Under the Petroleum Act, 1934 and Explosives Act, 1884, no entity shall store, transport, import, fill, or manufacture regulated hazardous substances beyond prescribed limits without a valid license. Non-compliance can attract penalties under Section 6 of the Explosives Act and Section 15 of the Environment (Protection) Act, 1986.
This article explains in detail which industries require PESO Certification, the exact thresholds that trigger licensing, rule references, timelines, and business risks.
PESO operates under the Department for Promotion of Industry and Internal Trade (DPIIT) and regulates high-risk industries through multiple central legislations.
The primary legal framework includes:
Under Rule 144 of Petroleum Rules, 2002, petroleum storage beyond notified limits requires licensing before installation.
Under Rule 47 of SMPV Rules, 2016, pressure vessels exceeding 1.5 bar must receive design approval prior to fabrication.
PESO certification is not a post-commissioning formality. It is a pre-installation statutory requirement.
Refineries, tank farms, and petroleum depots are among the most heavily regulated industries under Petroleum Rules, 2002.
These facilities handle high-risk Class A, B, and C petroleum products with flash points below and above 23°C. The risk of fire escalation, vapour explosion, and soil contamination increases exponentially with storage capacity.
A single 50 KL above-ground storage tank automatically triggers PESO licensing.
License validity: Generally 3 years.
Inspection timeline: 30 working days from application submission.
Failure to comply may result in tank sealing and suspension of operations.
LPG bottling plants are regulated under Gas Cylinders Rules, 2016 due to high-pressure filling operations and fire risk.
These plants typically operate with storage bullets ranging from 5 KL to 100 KL.
Processing timeline: 45–60 working days including inspection.
A medium-scale LPG plant handling 30,000 cylinders per day cannot legally operate without PESO certification.
With India’s push toward cleaner fuels, CNG and LNG infrastructure is expanding rapidly. However, these facilities operate under high-pressure conditions and fall under SMPV Rules, 2016.
Approval timeline: 45–75 days depending on site complexity.
Even a single 6,000 WL cascade can trigger licensing.
Explosives manufacturing involves blast-sensitive materials regulated under Explosives Rules, 2008.
Violations can lead to immediate suspension and criminal prosecution.
Many chemical industries store flammable solvents like methanol, toluene, benzene, and acetone.
These fall under Petroleum Rules, 2002 when flash point and storage volume cross defined limits.
A 20 KL methanol tank in a pharmaceutical plant automatically requires PESO approval.
Common compliance failures include:
Industries manufacturing oxygen, nitrogen, hydrogen, or acetylene require approval due to high-pressure and cryogenic risk.
Gas filling plants handling 500 cylinders per day must maintain strict PESO compliance.
Mining operations using blasting materials are governed under Explosives Act, 1884.
Typical mining consumption ranges:
Mining operations may be halted immediately without valid license.
| Regulation | Key Requirement | Deadline | Applicable To | Risk if Ignored |
|---|---|---|---|---|
| Petroleum Rules, 2002 | License before storage beyond limits | Pre-installation | Oil depots | Tank sealing |
| Gas Cylinders Rules, 2016 | Cylinder filling approval | Before operation | LPG/CNG plants | Production halt |
| SMPV Rules, 2016 | Design approval before fabrication | Pre-fabrication | LNG/CNG stations | Equipment confiscation |
| Explosives Rules, 2008 | Magazine & manufacturing license | Before storage | Mining/fireworks | Criminal liability |
| EPA, 1986 Section 15 | Environmental compliance | Continuous | Hazardous industries | 5-year imprisonment |
Interpretation: PESO approval must be obtained before commissioning. Retrospective compliance is rarely accepted.
| Step | Authority | Timeline | Documents Required | Risk Area |
|---|---|---|---|---|
| Layout Approval | PESO Zonal Office | 15–30 days | Site plan, risk assessment | Inadequate safety distance |
| Design Approval | PESO HQ | 20–45 days | Stress analysis, drawings | Incorrect material specs |
| Inspection | PESO Officer | Within 30 days | Installation report | Missing fire equipment |
| License Grant | PESO | 7–15 days | Fee payment | Delayed submission |
| Renewal | PESO | Before expiry | Compliance certificate | License lapse |
Total average timeline: 45–75 working days.
Non-compliance can result in:
Section 15 penalty includes imprisonment up to 5 years and fine up to ₹1 lakh, with additional daily penalties for continuing violations.
A 75 KL solvent tank farm in Gujarat faced 90-day delay due to non-compliant dyke wall design. Investment impacted: ₹12 crore.
A hydrogen mobility station in Karnataka required redesign of cascade system after exceeding approved pressure rating, resulting in 60-day commissioning delay.
Early compliance ensures:
Project cost escalation due to compliance delay typically ranges from 8% to 15%.
Industries handling petroleum, compressed gases, explosives, pressure vessels, or cryogenic storage must obtain PESO Certification before installation and commissioning.
The regulatory framework is strict, inspection-driven, and legally enforceable. Delayed compliance can stop operations, block imports, and expose directors to criminal liability.
Proactive planning, correct engineering documentation, and proper safety layout design significantly reduce risk.
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