MDPC

This Marketing Discipline Procedural Code (MDPC) is issued by the Essar Oil
Ltd. (the Company) in pursuance of the Franchisee Agreement and shall be
supplemental to the Franchisee Agreement executed between the Company and
the Franchisee and shall be deemed to form an integral part of the Franchisee
Agreement .
3 Tier Sampling:
The3 tier sampling Procedure for MS and HSD is so designed as to ensure that the
product sold at a retail Outlet is the same that is supplied to the Retail outlet by the
Company.
The first tier sampling is done at supply location.
Every day, 4 *1 liter sample of MS and 2*1 liter sample of HSD from the tank lorry
filling point from which tank lorry is being filled, are taken, sealed, labelled and
retained.
The second tier sampling is done at RO.
At the time of receipt of a tank lorry, the, franchisee after removal and replacement
of about 20 liters of the product from the pipeline of the tank lorry, checks samples
from the top and bottom of each compartment of the tank lorry and matches the
density@ 15 degree C mentioned the invoice.
After finding that the comparison is within permissible limit of +/- .003 gms/cc a
composite sample (4*1 liter of MS and 2*1 liter sample of HSD) filled in clean
aluminum sample container housed in wooden boxes. The density @ 15 degree C of
these samples is entered, apart from all other details on the label and sealed signed
by both Franchisee and Driver and retained.
The third tier sampling done by Companys representative.
TSM should collect sample through the nozzles from all tanks of the Retail Outlets as
per norms subject to a minimum of one Retail Outlet of each territory every month.
Sample should also be drawn in case of stock variation beyond permissible limit,
density failure, filter paper test failure as well as during specific complaints against
the Retail Outlet.
TSM should collect six samples of each for MS 6*1 and three samples of each tank
for HSD 3*1
The sample should reach the respective laboratory for testing within 10 days of the
collection of the samples. Procurement and positioning of adequate number of
sample containers, random numbered plastic seals, sealing wire and pliers at retail
outlet is the responsibility of concerned TSM.
All sample should reach a lab as decided by the Company within 10 days from the
date of drawl and the lab should test the samples within the next 10 days. Results

are to be communicated to the Franchisee on receipt of the test report of the

sample in writing.

Franchisee should draw product sample from the pump nozzles in the morning to
detect presence of water, if any before commencing daily sales.
Wherever Ethanol is doped in MS, the vent should have silica gel traps to ensure
that there is no ingress of water. The gels are to be replaced on discoloration.
Franchisee should check on daily basis the weights and measures seal in the
dispensing unit for of the correctness and validity of the unit.
In case of variation in delivery of dispensing pumps, the same should be
immediately notified to weights and measures department and restamping will be
done by weights and Measures Department in the presence of authorized
representative.
Franchisee to carryout visual checks on a daily basis for any leaks in pump, delivery
hose/ nozzles and fittings.
All statutory rules and regulations in connection with storage and sale of petroleum
products must be followed and implemented, such as maintaining stock records,
display of daily stocks/ price board etc.
Franchisee to have calibrated hydrometers thermometers and ASTM table.
Maintenance of equipment should be executed through OEMs representative once
in a quarter to check the dispensing unit, Breakdown/ Annual verification.
If the pump is delivering short / excess, The Franchise should arrange for
recalibration with the help of the Weights and Measures Inspector.
Inspection of Retail Outlets should be executed by TSM once in a month, by DM 25
% of all in his jurisdiction, by Zonal Head on need basis and by Quality Head as
Random inspection.

The Company is committed towards maintain right quality and quantity of all
products sold through its Retail Outlets. To this end the provision shall applicable
and binding upon the Franchisee
Adulteration of products means the introduction of any foreign substance into MS/
HSD illegally with the result that the product does not confirm the requirements of

bureau of Indian Standards specification number IS: 2796 and IS: 1460 for MS and
HSD respectively.
Short delivery of Products
Totalizer seals found tampered with the tampering of the totalizer seals.
Additional fitting/ Gears found in Dispensing Unit.
Unauthorized storage facilities
Unauthorized purchase /sales/ exchange of MS/HSD/ LUBES
Non availability of reference density at the time of inspection
Selling of normal products as branded fuel (beyond permissible limit)
Non maintenance of specified records as follows:
12345-

Daily sales ,purchase, stock resister

Dispenser maintenance records
Inspection record of previous five financial years
Purchase Invoices & sales bills for the current and previous financial year.
Selling License , Explosive License, and such other Licenses which are needed
for continued operation of the RO
6- Refusal by Franchisee to allow drawl of sample and carrying out inspection.

In case of proven adulteration at the RO, the entire expenses towards

transportation, pumping of product, tank cleaning, incidental charges will be
recovered from the Dealer. The Dealer will be paid an amount equivalent to the
cost of furnace oil, the downgraded product and for the actual quantity received
at the refinery end.
Procedure for show cause, personal hearing and procedure for imposition of
requisite deterrent/suspension/reactivation/termination on Franchisee.

Upon determination of any irregularity in pursuance of the response to the show

cause notice or in pursuance of a personal hearing or based on clear evidence of
the same , The Company shall be entitled to impose a deterrent fine, suspension,
termination and reactivation charges to the Franchisee.