
When Chemical Storage Approval Is Required
Applicability is decided by the interaction of four factors, and changing any one of them can change the answer.
- What the material is. Whether it meets the statutory definition — under the Petroleum Act, any liquid hydrocarbon or mixture of hydrocarbons, and any inflammable mixture containing a liquid hydrocarbon.
- How it classifies. Flash point determines the class, and the class drives the requirements.
- How much is held. Thresholds differ by class and storage mode.
- How it is stored. Drums, day tanks, above-ground bulk tankage and underground tanks are treated differently.
Petroleum Class A
Below 23°CHexane, benzene, toluene, naphtha. The Inflammable Substance Act, 1952 also brings acetone, ethyl alcohol and methyl alcohol under the Petroleum Rules.
Petroleum Class B
23°C to below 65°CDiesel (HSD), kerosene (SKO) and mineral turpentine. Usually held as utility or captive fuel stock rather than process input.
Petroleum Class C
65°C to below 93°CFurnace oil and light diesel oil — typically boiler and thermic fluid heater feedstock.
PESO’s published list of petroleum requiring a licence includes benzene, toluene, hexane, xylene, styrene and naphtha. Acetone, ethyl alcohol, methyl alcohol and calcium carbide fall under the Inflammable Substance Act, 1952 and also require a licence under the Petroleum Rules.
Not every chemical is in scope. Materials that are not liquid hydrocarbons and not inflammable mixtures containing one may fall outside the Petroleum Act definition entirely. A warehouse holding only such materials may have no requirement under these rules, though other frameworks may still apply. This is why classification comes before everything else.
Hazardous Chemical Storage Requirements
Where approval is required, the requirements attach to the storage installation as a whole rather than to the material alone.
Bulk tankage
- Tank construction, specification and test status
- Bunding capacity, construction and drainage
- Distances to protected works and boundaries
- Separation between tanks and tank groups
- Vents, flame arrestors, earthing and level indication
- Loading and unloading arrangements
Drum and packaged storage
- Storage structure, ventilation and flooring
- Segregation between incompatible materials
- Containment for spillage
- Stacking arrangements and access
- Electrical fittings suited to the area classification
- Fire protection appropriate to the material
Specific distances and capacities vary by class and quantity and are established against the rules for the particular case. Any page quoting them as universal figures should be treated with caution — and figures drawn from superseded rules still circulate widely.
Documents & Site Layout
Storage applications are drawing-led. The layout carries most of the weight and the remaining documents support it.
- Site plan and key plan showing protected works within the relevant distance
- Layout drawing showing storage positions, bunding, access and pipe routes
- Tank schedule with capacities, construction and product class, or drum storage capacity and arrangement
- Material list with classification, flash point and maximum quantity
- Fabrication and test certificates for tanks and fittings
- Electrical area classification and equipment approval status
- Fire protection arrangements
- Company constitution documents, ownership or lease papers, signatory authorisation
- Safety and test certificates by a recognised competent person
- Existing licence with approved drawing, for renewal or amendment
The commonest defect is a layout drawing that shows only the applicant’s plot. Distances are measured to protected works, which may lie beyond your boundary, so a drawing that stops at the fence line cannot demonstrate compliance.
Safety & Compliance
A storage licence carries conditions, and compliance is a continuing obligation rather than a one-off demonstration. The areas that drift most:
- Quantity. The licensed holding is a limit. Inventories grow incrementally and overtake it quietly.
- Material list. New materials introduced into a licensed area without amendment.
- Segregation. Housekeeping discipline that slips between inspections.
- Fittings. Items replaced during maintenance with a different specification from the one approved.
- Access and fire protection. Routes blocked by stock or equipment over time.
- Surroundings. Development on adjoining land altering the distance position.
An annual review of the storage area against the licence catches most of these while they are still easy to correct.
Inspection Process
PESO has moved to a paperless process, with applications routed through the National Single Window System. PESO’s published document on disposal timelines states that online applications are auto-inwarded four times a day and are to be processed within 21 days. Read that figure for what it is — a departmental processing timeline, not a promise of when your licence arrives. Elapsed time is governed almost entirely by how often the file goes back for clarification.
Where inspection applies, the storage is checked against the submitted drawing and schedules:
- A tank or vessel relocated during construction, never reflected in the approved drawing
- Stored quantities that have crept above the licensed figure
- Safety fittings replaced with a different make or specification
- Electrical equipment in a classified area whose approval status nobody has checked
- Distances on the drawing that do not survive a tape measure
- A site team that has never seen the drawing filed on their behalf
What a consultant can and cannot do. We prepare the file, brief your site team and draft replies to departmental observations. We have no role in how an inspection is conducted and no influence over its outcome. A One Consultant is a private consultancy — not a government body, and not appointed or authorised by one. Our practice does not extend to GPCB, CPCB or Drug Department matters.
Renewal & Amendments
Renewal timing varies by rule set, and misinformation circulates freely here. A documented example: under the SMPV(U) Rules, licences are granted or renewed for a maximum of three years ending 31st March, and the last date for receipt of a renewal application at the renewing office is 2nd March of the expiry year. Other rule sets carry their own validity periods and cut-off dates — check yours against your licence document rather than assuming the SMPV position applies.
Amendment applies when storage capacity increases, a tank is added or removed, a new material enters a licensed area, the storage is relocated within the site, the layout is modified, or the company name, constitution or occupancy changes.
For warehouse operators handling third-party stock, the material list is the item to watch. A change in customer can change what is stored without any physical change to the building at all.
Gujarat Industrial Locations
Chemical storage work concentrates where the manufacturing and the movement are:
Chemical estates
Ankleshwar, Panoli, Jhagadia, Nandesari, Vatva and Vapi — mostly captive storage attached to manufacturing, with legacy drawings the recurring issue on the older estates.
Port and logistics belt
Dahej, Hazira, Kandla and Mundra — larger tank farms, third-party storage and higher throughput, often with several rule sets on one site.
Our office is at GIDC Char Rasta in Vapi. A One Consultant has worked on industrial licensing since 1999, with clients including Aarti Industries, Meghmani Organics, Jesons Industries and Alchemie Finechem.
FAQs
Does a chemical warehouse need a PESO licence?
It depends on what is stored, in what quantity and how. A warehouse holding only materials outside the Petroleum Act definition may have no requirement under these rules. One holding Class A solvents in bulk very likely does. Classification comes before any other question.
Which chemicals require a storage licence?
PESO's published list of petroleum requiring a licence includes benzene, toluene, hexane, xylene, styrene and naphtha. Acetone, ethyl alcohol, methyl alcohol and calcium carbide fall under the Inflammable Substance Act, 1952 and also require a licence under the Petroleum Rules.
Is drum storage treated the same as tank storage?
No. Storage mode is one of the factors determining applicability and requirements. A site holding a given annual volume in drums is not in the same position as one holding it in a bulk tank, even at identical consumption.
What quantity can we store without a licence?
Thresholds differ by class and storage mode, and figures published on consultant pages are frequently drawn from superseded rules. Verify the current position against the applicable rules for your specific material and storage arrangement.
Our drawing only shows our own plot. Is that enough?
Usually not. Distances are measured to protected works, which may lie beyond your boundary, so a drawing stopping at the fence line cannot demonstrate compliance. This is the most common defect in storage applications.
We store material for third parties. Who holds the licence?
The occupier of the premises where the material is stored is generally the party concerned, but the position should be established explicitly rather than assumed — particularly where the material list changes with the customer.
How do we stay compliant between inspections?
An annual review of the storage area against the licence: quantities against the licensed holding, materials against the licensed list, segregation, fittings, access and fire protection. Most drift is easy to correct when caught early.
Can we add a new material to an existing store?
If it is not covered by your licensed particulars, that is an amendment question. Introducing a new material into a licensed area without amendment is a common and avoidable compliance gap.