Which licenses are required to store more than five gas cylinders in a single shop?
Regulations have been established regarding the use and storage of commercial gas cylinders in shops and restaurants. Under these rules, a commercial establishment is generally permitted to store a maximum of 100 kg of LPG—equivalent to five cylinders—without requiring a special additional license. Storing quantities beyond this limit requires special permission; keeping more than five LPG cylinders necessitates a storage license from the Petroleum and Explosives Safety Organization (PESO) as well as local administrative approval.
The licensing process depends on whether you intend to become an LPG distributor (gas agency dealer) or simply wish to stock LPG for a business such as a hotel, restaurant, sweet shop, or factory. If you wish to keep cylinders for general commercial use, you must comply with the relevant licensing requirements and regulations.
PESO Storage License
If you store more than 100 kg of commercial LPG—meaning five or more cylinders—in your shop, obtaining a storage license from PESO is mandatory under the Gas Cylinder Rules, 2016. You must submit an application for the PESO license. The application must be accompanied by a site layout plan detailing the building's safety features. Essential documents include proof of shop ownership (or a valid rent/lease agreement), the company's PAN card, GST certificate, and trade license. Additionally, a Fire NOC and a No-Objection Certificate from the District Magistrate or Police Department are required.
Once the application is submitted, PESO officials visit your shop or warehouse to conduct a thorough inspection of safety standards, ventilation, and emergency facilities. If the officials are satisfied and the inspection report is positive, your PESO storage license is approved. This license is typically valid for 3 to 5 years and must be renewed before it expires.
NOC from the Fire Department and Local Administration
Obtaining a safety certificate—specifically a Fire NOC—from the local fire station is the primary and essential step for storing commercial gas. This process also involves a physical inspection. Additionally, you are required to obtain a No Objection Certificate (NOC) from the District Magistrate or the police department of your area; this is granted following a security inspection of the shop.
Trade License from the Local Body
A trade license from the local administration is required for any commercial activity. To obtain this, one must apply to the municipal corporation or the local civic body. The license is issued after the verification of documents.
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