PESO Licensing Requirements for Oil & Gas, Chemical, and Explosives Industries

PESO

When an oil storage terminal in Gujarat faced delays due to missing PESO approvals, every extra week meant lakhs in idle logistics costs. The same story repeats across India — chemical warehouses waiting on clarifications, or explosive manufacturers losing tender eligibility.

That’s where PESO compliance becomes not just a legal formality, but a license to operate safely and profitably.

At Green Permits, we’ve helped clients from refinery operators to industrial gas bottlers navigate PESO’s complex rules — ensuring they meet every safety, design, and documentation norm before inspection even begins.

What is PESO and Why It Matters

The Petroleum and Explosives Safety Organisation (PESO), under the Department for Promotion of Industry and Internal Trade (DPIIT), regulates the storage, transport, handling, and manufacturing of petroleum, compressed gases, and explosives in India.

PESO ensures that every installation — from a small LPG filling station to a large refinery — adheres to explosion-proof design standards, pressure vessel integrity, and safe-distance criteria prescribed under laws like:

  • Petroleum Rules, 2002
  • Static and Mobile Pressure Vessels (Unfired) Rules, 2016
  • Explosives Rules, 2008
  • Ammonium Nitrate Rules, 2012
  • Gas Cylinder Rules, 2016

Who Needs PESO Licensing

PESO licensing is mandatory for any entity involved in:

  • Oil & Gas: refineries, fuel depots, LPG bottling plants, terminals, and petrol pumps
  • Chemical Industry: storage of petroleum-based or flammable chemicals
  • Explosives Manufacturing: detonators, fireworks, blasting agents, or AN-based chemicals
  • Industrial Gas Sector: compressed-gas cylinder manufacturing, filling, or testing facilities

Operating without a valid PESO license can lead to plant shutdowns, penalty notices, or criminal liability under the Petroleum Act, 1934.

Types of PESO Licenses

Industry Segment Applicable Rules Common License Forms Validity
Petroleum Storage / Retail Petroleum Rules 2002 Form XIV / XV / XVI 3–5 years
LPG / CNG Bottling, Gas Storage SMPV(U) Rules 2016 LS-1A, LS-2 5 years
Explosives Manufacturing / Storage Explosives Rules 2008 LE-1, LE-3, LE-5 3 years
Ammonium Nitrate Processing AN Rules 2012 Form P-1 3 years
Gas Cylinder Testing Stations GCR 2016 GC-Form B 3 years

Each license is industry-specific, with site inspections, layout approvals, and equipment testing forming the backbone of approval.

Key Compliance Documents Required

  • Site Layout Plan (as per OISD safety distances)
  • Factory Licence / Consent under Air & Water Acts
  • Third-party test reports for vessels and pressure systems
  • NOC from District Authority / Fire Department
  • Geo-tagged photographs and equipment test certificates
  • Application via NSWS Portal → PESO Online System

Application Process (Simplified)

  1. Sign up on NSWS Portal → select PESO service → redirected to PESO portal
  2. Fill online application with all documents and drawings
  3. Submit processing fees and inspection request
  4. Technical scrutiny by PESO officers → correction requests (if any)
  5. Inspection & Approval → license digitally issued via portal

Average approval time: 30–45 working days for complete applications.

OISD Standards — The Hidden Backbone

The Oil Industry Safety Directorate (OISD) standards complement PESO regulations.
For instance:

OISD Standard Focus Area Linked Rule
OISD-144 LPG bottling plant layout SMPV(U) Rules 2016
OISD-118 Petroleum product storage Petroleum Rules 2002
OISD-105 Fire protection system design Petroleum Rules 2002
OISD-188 CNG refueling stations Gas Cylinder Rules 2016

Following these standards at the design stage cuts approval delays and avoids costly modifications later.

Risks of Non-Compliance

  • Legal Action: suspension or cancellation of license
  • Operational Loss: delays in commissioning or transport clearances
  • Safety Risks: fire, explosion, or loss of insurance coverage
  • Financial Impact: penalties, project delays, and liabilities

Early compliance protects your operations, workers, and reputation.

The Chemical Warehouse Case

A mid-sized solvent manufacturer in Maharashtra delayed PESO license renewal by 90 days — their entire 5,000 KL tank farm was sealed by the district administration. With Green Permits’ guidance, layout approvals were revised as per OISD-118, and the site secured renewal in just 21 days — saving over ₹30 lakhs in demurrage losses.

How Green Permits Helps

At Green Permits Consulting, we simplify PESO licensing and renewals through:

  • Pre-inspection document verification & design compliance
  • Coordination with PESO regional offices and OISD consultants
  • Licensing for Petroleum, LPG, Gas Cylinders, and Explosives units
  • Integration support with NSWS and SPCB consents
  • Post-approval maintenance, renewals, and amendments

Conclusion

PESO compliance isn’t just paperwork — it’s the backbone of safe industrial growth. Whether you handle petroleum, LPG, or chemical products, securing the right license early prevents shutdowns, fines, and fire risks.

Green Permits helps you stay compliant, efficient, and inspection-ready — from concept to commissioning.

📞 +91 78350 06182 | 📧 wecare@greenpermits.in
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FAQs

Yes. Any flammable or petroleum-based chemical storage above threshold limits under Petroleum Rules 2002 requires PESO approval.

Most licenses are valid for 3–5 years and renewable upon inspection.

Yes. All new, renewal, and amendment applications are filed via NSWS → PESO Portal.

The facility may be sealed, and owners penalized under the Petroleum Act 1934 and Explosives Act 1884.

Yes. Foreign OEMs supplying to Indian projects can apply through authorized Indian representatives.

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