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What is PESO License?

The Petroleum and Explosives Safety Organization (PESO) is a regulatory body operating under the Department for Promotion of Industry and Internal Trade (DPIIT) in India. It is responsible for ensuring the safety and security of hazardous substances like petroleum, explosives, and compressed gases. PESO regulates the manufacture, storage, transport, and use of these materials to prevent accidents, protect the environment, and safeguard public health.


PESO oversees various activities related to petroleum, explosives, and compressed gases, including issuing licenses, conducting inspections, enforcing safety standards, and providing technical guidance. The organization plays a crucial role in maintaining safety standards across industries that deal with hazardous materials, contributing to the overall safety and well-being of the public and the environment.

Check out the PESO License Video

What are the Benefits of a PESO License?

Safety Compliance

Ensures that the handling, storage, and transportation of hazardous materials are conducted in a safe manner, reducing the risk of accidents and environmental damage.

Legal Operation

Provides legal authorization to operate facilities dealing with hazardous materials, protecting businesses from legal penalties and shutdowns.

Market Access

Facilitates access to markets and customers who require assurance of regulatory compliance.

Credibility

Enhances the credibility of a business by demonstrating adherence to stringent safety and regulatory standards.

Insurance Benefits

Helps in securing insurance for facilities and operations, as insurers often require proof of regulatory compliance.

Environmental Protection

To prevent environmental damage due to improper handling of hazardous materials.

Why PESO License is required?

  • 1. Safety Assurance:

    • • Risk Mitigation: Ensures that hazardous materials like petroleum, explosives, and compressed gases are handled safely to prevent accidents, explosions, and other dangerous incidents.
    • Employee Protection: Safeguards the health and safety of workers involved in the handling, storage, and transportation of hazardous materials.

  • 2. Regulatory Compliance:

    • • Legal Requirement: Complies with Indian laws and regulations governing the use of hazardous materials. Operating without a PESO license can result in severe legal penalties, fines, and even shutdowns.
    • Standardization: Establishes uniform safety and operational standards across the industry, ensuring consistent compliance.

  • 3. Environmental Protection:

    • • Pollution Control: Ensures that the handling and storage of hazardous materials do not harm the environment. The license mandates adherence to environmental protection guidelines, helping to prevent soil, water, and air pollution.
    • Sustainable Practices: Promotes sustainable practices by enforcing regulations that minimize the environmental impact of industrial activities involving hazardous materials.

  • 4. Market Access:

    • • Business Operations: Essential for legally operating businesses that manufacture, store, transport, or use petroleum, explosives, and compressed gases.
    • Competitive Advantage: Demonstrates compliance with safety and regulatory standards, which can be a requirement for certain contracts and markets.

  • 5. Insurance and Financial Benefits:

    • • Insurance Eligibility: Many insurance companies require proof of compliance with safety regulations for coverage. A PESO license facilitates obtaining insurance for facilities and operations.
    • Lower Premiums: Demonstrating adherence to safety standards can result in lower insurance premiums due to reduced risk.

  • 6. Credibility and Trust:

    • • Reputation: Enhances the credibility and reputation of a business by showing a commitment to safety and regulatory adherence. This can build trust with customers, partners, and stakeholders.
    • Stakeholder Confidence: Provides assurance to investors, clients, and the community that the business operates responsibly and safely.

  • 7. Operational Efficiency:

    • • Structured Procedures: Helps establish and maintain structured safety and operational procedures, leading to more efficient and safer workflows.
    • Incident Reduction: Reduces the likelihood of incidents that can cause operational disruptions, financial losses, and reputational damage.

Products covered under a PESO license include:

    Petroleum Products:

    • Gasoline (Petrol)
    • Diesel
    • Kerosene
    • Liquefied Petroleum Gas (LPG)
    • Aviation Turbine Fuel (ATF)
    • Lubricants and Greases
    • Petroleum-based Solvents

    Compressed Gases:

    • Liquefied Natural Gas (LNG)
    • Liquefied Petroleum Gas (LPG)
    • Compressed Natural Gas (CNG)
    • Oxygen
    • Nitrogen
    • Argon
    • Acetylene
    • Carbon Dioxide

    Explosives:

    • Dynamite
    • Detonators
    • Blasting Caps
    • Ammonium Nitrate-based Explosives
    • Nitroglycerine-based Explosives
    • Pyrotechnic Products (Fireworks)

Role of Shamkris and Process of PESO License

Shamkris adopts a results-oriented approach to compliance with mandatory licence requirements in the organization. A simple and guidance methodology help organisation to achieve licence in a timely manner and cost-effective. Shamkris support 100% in advisory, Guidance, Compliance with respect to license requirements to obtain approval.

The License process described below:

  • Advisory for the document required
  • Preparation of documents as per application & list of documents.
  • Application File
  • Inspection by the department if required
  • Liason department
  • License issued
  • Yearly Compliance if Applicable
  • Renewal when due

Who can issue the PESO License?

AERB Petroleum and Explosives Safety Organization (PESO)

Validity of PESO License

The validity of a PESO license varies depending on the type of license and the nature of the operations. It typically ranges from 1 to 5 years, after which renewal is required.

FAQ

A PESO license is an official authorization granted by the Petroleum and Explosives Safety Organization (PESO) in India. It allows entities to legally manufacture, store, transport, and use petroleum products, explosives, and compressed gases while ensuring compliance with safety and regulatory standards.

Entities involved in the handling of hazardous materials such as petroleum, explosives, and compressed gases require a PESO license. This includes manufacturers, storage facility operators, transporters, retailers, industrial facilities, service providers, research and development organizations, and event organizers.

• Safety Compliance: Ensures safe practices and reduces the risk of accidents.
• Legal Operation: Provides legal authorization and protects against legal penalties.
• Market Access: Facilitates entry into markets requiring regulatory compliance.
• Credibility: Enhances business reputation and builds trust with stakeholders.
• Insurance Benefits: Helps in securing insurance and potentially lower premiums.

• Identity Proof: Aadhaar card, passport, etc.
• Address Proof: Utility bill, rental agreement, etc.
• Site Layout Plan: Detailed layout showing storage and safety arrangements.
• No Objection Certificate (NOC): From local authorities.
• Safety Measures Documentation: Details of safety equipment and procedures.
• Environmental Clearance: If applicable.
• Ownership or Lease Agreement: Proof of ownership or lease.
• Compliance Certificates: Additional certificates proving adherence to safety and regulatory standards.

The validity of a PESO license varies depending on the type of license and the nature of the operations. It typically ranges from 1 to 5 years, after which renewal is required.

Operating without a PESO license is illegal and can result in severe legal penalties, fines, operational shutdowns, and increased liability in case of accidents.