The Ministry of Commerce and Industry has notified the Gas Cylinders (Amendment) Rules, 2025. These new rules introduce definitions for Micro and Small Enterprises, Startups, and women entrepreneurs, alongside a substantially revised fee structure that offers concessions to these specific business categories.
The amendments follow a draft notification published on December 16, 2024, for which no objections or suggestions were received from the public. Enacted under the powers conferred by sections 5 and 7 of the Explosives Act, 1884, these rules represent a forward-looking step to streamline compliance and reduce financial burdens on nascent and smaller entities in the gas cylinder sector.
The amended Rule 2 of the Gas Cylinders Rules, 2016, now includes explicit definitions for Micro and Small Enterprises, Startup and Women Entrepreneur.
Revised Fee Structure: A Boost for Targeted Categories
The most impactful change is the complete substitution of SCHEDULE-V, which outlines all applicable fees for licenses and other services related to gas cylinders. The new schedule introduces a tiered fee system, offering substantial reductions for Micro and Small Enterprises, Startups, and Women Entrepreneurs compared to standard charges.
For instance, consider some key examples from the revised fee structure:
Import License (Form D)
For importing the first 100 cylinders, the standard fee is Rs. 2000. However, Micro & Small Enterprises and Startups will now pay only Rs. 1000, while Women Entrepreneurs will pay a mere Rs. 400. Similar proportionate reductions apply for higher volumes.
Filling Compressed Gas (Form E)
For each type of gas filled (e.g., toxic, non-toxic, LPG), the standard license fee is Rs. 5000. This is reduced to Rs. 2500 for Micro & Small Enterprises/Startups and a significant Rs. 1000 for Women Entrepreneurs.
Storing Compressed Gas (Form F)
For storing toxic and flammable gases (up to 100 cylinders), the standard fee is Rs. 2000. This drops to Rs. 1000 for Micro & Small Enterprises/Startups and Rs. 400 for Women Entrepreneurs. Similar concessions are provided for storage of non-toxic/non-flammable gases, LPG, and acetylene gas.
Dispensing CNG (Form G)
Operating a CNG dispensing station (mother, daughter, or online) usually incurs a Rs. 10,000 license fee. This is reduced to Rs. 5000 for Micro & Small Enterprises/Startups and a mere Rs. 2000 for Women Entrepreneurs.
Beyond these core license fees, the amendments also introduce reduced charges for various other purposes, including:
- Issue of filling permission.
- Approval of design for manufacturing cylinders, valves, or LPG regulators (both domestic and foreign manufacturers).
- Conversion of cylinders.
- Approval of cylinder testing stations and hot repair.
- Prior approval of specifications and plans.
- Amendment or issuance of duplicate/authenticated copies of licenses.
- Appeals against licensing authority orders.
Conditions for Fee Relaxation
To avail these reduced fees, applicants must submit specific documentary evidence:
- A valid certificate issued by the Ministry of Micro, Small and Medium Enterprises. It’s explicitly stated that this relaxation applies only to Micro and Small Enterprises, not Medium Enterprises.
- Documentary evidence of registration of Startup with the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
- Documentary evidence confirming proprietorship or directorship of the Women Entrepreneur of the firm or company.
Notably, the rules also include a provision that if a Micro and Small Enterprise or a Startup is owned and controlled by a woman, the lower of the two applicable fees will be charged, ensuring maximum benefit. A crucial disclaimer warns that any false or misleading information submitted by the applicant at any stage will render the approval or license liable for cancellation.
