PESO License for Gas Cylinder Storage: Procedure, Fees & Validity

Updated on June 26, 2025 01:10:29 PM

The Petroleum and Explosives Safety Organization (PESO) is the principal regulatory body in India that is responsible for the safety of the handling, storage, and transportation of any hazardous substance, such as the cylinders of gaseous form. Since the compressed gases are used widely in various industries across the world, including manufacturing industries, healthcare, food processing industries, and other industries, the need to obtain a PESO license for storing the gas cylinders in storage sheds cannot be overemphasized. This license is crucial for the purpose of safety of employees and assets, including fulfillment of legal requirements in connection with the provisions of the Explosives Act as well as the rules for gas cylinders.

There are a number of steps which are involved in licensing, such as site inspection and assessment, submission of technical documents, and compliance with very standard standards relating to the construction safety, ventilation, fire precautions, and safety features of the storage facility. Only applicants are required to ensure that their storage sheds are in compliance with policies, including distance requirements, sign requirements and environmental or safety measures. All the conditions herein, when met, result in the provision of a license by PESO enabling the storage of gas cylinders safely and legally. PESO regulation compliance not only helps to avoid certain risks but also assists to maintain confidence in industries’ adhesion to the law and 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 for industries, gas agencies, fuel stations, and even individuals who deal in LPG, CNG, CNG cylinders, petroleum products, fireworks, etc. Additionally, obtaining a Peso CNG Cylinder Certificate is essential to ensure compliance with these safety norms for storage, transportation, and usage of compressed natural gas.

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 for Storage of Gas Cylinders in Storage Sheds

Obtaining a PESO license for the storage of gas cylinders in storage sheds offers several significant benefits:

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Procedure to obtain PESO License for Storage of Gas Cylinders in Storage Sheds

To obtain a PESO license for storage of gas cylinders in storage sheds 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 for Storage of Gas Cylinders in Storage Sheds

To obtain a PESO License for Storage of Gas Cylinders in Storage Sheds, the following documents are typically required:

  • Application Form
  • Identity and Address Proofs of the Applicant
  • Recent Passport-size Photographs
  • Affidavit with Proper Notarization
  • Site Plan of the Storage Facility
  • Safety Assessment Report
  • Fire Safety Measures Documentation
  • NOC from Local Authorities (if applicable)
  • Proof of Ownership or Lease Agreement for the Storage Facility
  • Material Safety Data Sheets (MSDS) for the Gases Stored
  • Emergency Response Plan
  • Compliance with Gas Cylinder Rules Documentation
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PESO License fees for Storage of Gas Cylinders in Storage Sheds

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 for Storage of Gas Cylinders in Storage Sheds

The PESO License for Storage of Gas Cylinders in Storage Sheds can be obtained from the Petroleum and Explosives Safety Organisation (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 Section 65 of the Explosives Rules, 2008.

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Conclusion

PESO license for storage of gas cylinders in storage sheds is important for all those companies that deal with hazardous materials. This helps to avoid legal issues on safety concerns and safeguard workers, all in compliance with safety regulations. There are pre-qualification, application, and inspection culminating in compliance with strict safety measures. Benefits that can be associated with the initiation of processes include legal requirement compliance, reduction of risks, increased safety, and increased operational efficiency. The license is a three-year license and must therefore be renewed after this period. Acquiring a PESO license not only protects the facility but also increases the reliability of the company by proving that businesses follow safety measures and legal requirements.

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Frequently Asked Questions

Why is a PESO license required for gas cylinder storage?

The PESO license provides standards for storage of gas cylinders, reducing risks like fires, explosions, and other environmental mishaps, and above all, it complies with the legal requirements of the Explosives Act and the Gas Cylinders Rules.

What types of gas storage facilities require a PESO license?

Any facility where gases like LPG, CNG, oxygen, or industrial gases are stocked for use in manufacturing industries, hospitals, or distribution companies will need a PESO license.

What is the validity of a PESO license for gas cylinder storage?

A PESO license for gas cylinder storage is valid for three years and can thus be renewed for a further three years by completing a renewal application to PESO as directed under the Explosives Rules, 2008.

What documents are required to apply for a PESO license for gas cylinder storage?

Important documents include the application form, photo identification, proof of residential address, the storage facility layout plan, a safety evaluation report, local authority clearances (where necessary), and an emergency management plan.

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