The Central Government has announced amendments to the Gas Cylinders Rules, 2016, through the draft Gas Cylinders (Amendment) Rules, 2024. These changes seek to introduce fee reductions for Micro and Small Enterprises (MSEs), Micro & Small Startups, and Women Entrepreneurs. This draft notification was issued on December 16, 2024.
The amendments will introduce definitions for:
- “Micro and Small Enterprises” (MSEs), as defined in the Micro, Small and Medium Enterprises Development Act, 2006.
- “Micro & Small Startups,” defined as entities registered with the Department for Promotion of Industry and Internal Trade (DPIIT) as per the Gazette Notification G.S.R. 127(E) dated February 19, 2019.
- “Women Entrepreneur,” defined as an enterprise owned and controlled by a woman with a minimum 26% financial interest in the capital.
The most significant change will be the reduction in license fees for various activities related to gas cylinders, including import, filling, storage, dispensing CNG, and transport. The amended Schedule V details the revised fee structure. Some examples of fee reductions include:
- Import License (Form D): For the first 100 cylinders, the fee is reduced from Rs. 2,000 to Rs. 1,000 for MSEs/Startups and Rs. 400 for Women Entrepreneurs.
- Filling License (Form E): The fee for filling each type of gas is reduced from Rs. 5,000 to Rs. 2,500 for MSEs/Startups and Rs. 1,000 for Women Entrepreneurs.
- CNG Dispensing License (Form G): The fee is reduced from Rs. 10,000 to Rs. 5,000 for MSEs/Startups and Rs. 2,000 for Women Entrepreneurs.
Fees for various other activities, such as design approvals, cylinder conversion, testing station approvals, and license amendments, have also been significantly reduced for eligible businesses.
To claim the reduced fees, applicants must submit the following documentation:
- MSEs: Certificate issued by the Ministry of Micro, Small and Medium Enterprises.
- Micro & Small Startups: Documentary evidence of registration with DPIIT.
- Women Entrepreneurs: Documentary evidence of ownership and control by a woman.
If a business qualifies as both an MSE/Startup and a Women Entrepreneur, the lower of the two applicable fee rates will apply.
Submitting false or misleading information will result in license or approval cancellation.
These amendments are expected to provide significant relief to smaller businesses and women entrepreneurs operating in the gas cylinder sector, promoting entrepreneurship and reducing financial barriers to entry. The reduced fees are intended to encourage compliance and formalization within the industry.
