PESO License to possess Ammonium Nitrate (AN) exceeding 30 metric ton (MT) - Procedure, Documents Required, Fee Charges, and Validity

Updated on December 18, 2024 04:23:21 PM

The Petroleum and Explosives Safety Organization (PESO) is the central-level regulatory agency in India to regulate safety in the handling, storage, and transportation of explosives and hazardous substances, namely ammonium nitrate (AN). Ammonium nitrate can be referred to as an ammonium salt that is produced and utilized in agriculture and mining industries, among other industries, due to its commercial aspects; however, it is an explosive substance and thus comes under very strict regulations. Any legal or natural person who plans to purchase or possess over 30 metric tons of AN bears high regulatory obligations and responsibilities. In order to obtain the possession of this volume, one has to own a PESO license for managing the content since the possession of information may potentially bring certain dangers to society.

In the licensing process, it is necessary to provide a large amount of information regarding the further use of the site, storage facilities, safety measures, and the conformity with national and international safety standards. Thus, the essence of the PESO license is in envisioning both potential opportunities for legal utilization of AN and minimizing risks connected with its abuse and possible catastrophes resulting from its implementation. Apart from the safety of the packaged items, the regulations also encourage civil liability and record tracking within the supply system. This page will cover the information on PESO licensing involving possession of ammonium nitrate in excess of 30 metric tons, inclusive of the requirements, how to apply, and uttermost significant regulations that should be complied with strictly to meet safety standards.

What is a PESO license?

A PESO license is an essential license needed to store, transport, use, and handle petroleum, explosives, and compressed gasses in India. The organization is under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

Thus, the PESO license covers mandatory requirements for assessing safety standards laid down in the Petroleum Act of 1934, the Explosives Act of 1884, and the Gas Cylinders Rules of 2004. It is compulsory to industries, gas agencies, fuel stations, and even persons who deal in LPG, CNG, petroleum products fireworks, etc.

In order to obtain a license, one is supposed to fill out an application, in which details are entered on PESO’s official site, and these include the type of substance, facility, and measures being taken. When it comes to setup, the application is followed by inspections and approvals to ensure that setup complies with the safety standards meant to prevent risks such as fire, explosion, and harm to the environment.

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Benefits of PESO License to possess AN exceeding 30 MT

Obtaining a PESO license for possessing ammonium nitrate (AN) exceeding 30 MT (metric tons) comes with several benefits. Here are the key benefits:

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Procedure to obtain PESO License to possess AN exceeding 30 MT

To obtain a PESO license to possess an AN exceeding 30 MT in India, certain steps need to be followed to get passed through various safety and environmental issues in the country. Here’s a step-by-step procedure:

Step 1: Determine the Type of License Needed

  • Petroleum License: For storage, distribution, and handling of petroleum products.
  • Explosive License: For manufacturing, storage, and handling of explosive substances.
  • Compressed Gas License: For storage and handling of compressed gases.

Step 2: Prepare Required Documents

Typical documents include:

  • Application form: Available from PESO or its regional offices.
  • Proof of identity and address.
  • Site plan/layout.
  • No Objection Certificate (NOC): From local authorities.
  • Details of safety measures and equipment.
  • Technical qualifications of the responsible personnel.

Step 3: Submit Application

  • Online: Through the PESO online portal (if available) or the Ministry of Commerce and Industry’s website.
  • Offline: Submit the application form and documents to the nearest PESO regional office.

Step 4: Inspection

  • The PESO officials will visit the site to ascertain levels of compliance with safety regulations and requirements.
  • The report of the inspection shall form part of the assessment.

Step 5: Fee Payment

  • Submit the appropriate fee as is mentioned in the fee structure of PESO. The fee of the service is dependent on the type and nature of the license being sought.

Step 6: Review and Approval

  • All the submitted papers containing the application documents along with the report following the inspection conducted through PESO shall be delved into.
  • If all papers are correct, then the license will be issued.

Step 7: Issuance of License

  • Once the license is approved, PESO will be the one to grant it.
  • The license may have certain stipulations that make it renewable after specific durations and may contain compliance checkups.

Step 8: Compliance

  • Comply with all the safety and operation requirements provided by the license and regulation.
  • The compliance checks as well as inspection may be carried out by PESO on a regular basis.
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Documents Required for PESO License to possess AN exceeding 30 MT

To obtain a PESO License to Stevedore Ammonium Nitrate (AN), the following documents are typically required:

  • Application Form
  • Identity and Address Proofs of the Applicant
  • Recent Passport-size Photographs
  • Affidavit with Proper Notarization
  • Safety Assessment Report
  • Fire Safety Measures Documentation
  • NOC from Local Authorities (if applicable)
  • Proof of Ownership or Lease Agreement for Storage Facility
  • Material Safety Data Sheets (MSDS) for Ammonium Nitrate
  • Emergency Response Plan
  • Details of Storage and Handling Procedures
  • Compliance with Safety Regulations Documentation
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Fee Charges for PESO License to possess AN exceeding 30 MT

The government fees for a Petroleum and Explosive Safety Organization (PESO) license are:

  • Initial Approval: 1,000 rupees
  • Grant of License: 2,000 rupees
  • Amendment: 1,000 rupees
  • Renewal: 2,000 rupees

Note: Professional fee charges for PESO license is @₹49,000

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Validity of PESO License to possess AN exceeding 30 MT

A PESO license to possess AN exceeding 30 MT can be obtained from the Petroleum and Explosives Safety Organization (PESO), and this license is issued for a period of 3 years and can be renewed every 3 years. The renewal application has to be made in the manner as prescribed under Rule 165 of the Explosives Rules, 2008.

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Conclusion

The PESO license is mandatory to hold more than 30 metric tons of ammonium nitrate (AN) in India to maintain the legalities, security, and sustainability. The permit is issued by the Petroleum and Explosives Safety Organization; it imposes some crucial guidelines towards unnecessary incidents and exploitations. This includes tendering and providing necessary documents, assessing the locations of the construction site, and meeting pertinent environmental and safety specifications. It is a three-year license that ensures proper handling of hazardous materials is under much accountability.

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Frequently Asked Questions

What is a PESO license?

PESO license is granted by the Petroleum and Explosives Safety Organization located in India for safe storage, transportation, and usage of petroleum and gasoline, explosives, and compressed gasses.

Why do I need a PESO license to possess more than 30 MT of ammonium nitrate?

An ammonium nitrate (AN) stockpile of over 30 MT is considered prohibited because of the explosive nature of the substance. PESO license helps maintain legal requirements and the right measures and can effectively deter any malicious use of the material.

What are the key benefits of obtaining a PESO license for ammonium nitrate?

The major advantages are legal compliance, certainty that the products will be correctly managed, continuation of operations, fewer risks, and improved reliability with clients and authorities.

What are the requirements to apply for a PESO license to possess AN exceeding 30 MT?

You must fill out an application form, use identity and address proof, a site plan, NOCs from local bodies, proof of safety measures, and an emergency response plan, among other documents.

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