Checked against the Marketing Discipline Guidelines 2024 (Ver. 1, effective 24.10.2024) on 15 October 2026. Published by MDG Services on 27 October 2026.
What NANO asks of the dealer
At an automated outlet the key idea is NANO, "No automation, No Operation" MDG 1.5(viii). The dealer has four jobs:
- Keep the automation working MDG 1.5(viii).
- Report any malfunction straight away to the oil company's authorised official MDG 1.5(viii).
- Follow the direction that official gives MDG 1.5(viii).
- Have a generator or UPS, so a power cut does not stop the automation or the electronic totaliser MDG 1.5(ix).
Note: MDG does not say in plain words that sales must stop when the automation fails. It says to report at once and follow the official's direction. Ask your oil company, and if the answer is "run it in manual mode", get that in writing first.
When manual mode or a switched-off gauge becomes an irregularity
Where automation has been completed, three things are irregularities if there is no permission from the competent authority MDG 5.1.16.
| What happens at the outlet | Clause |
|---|---|
| A dispensing unit (MPD) works in manual mode | MDG 5.1.16(a) |
| The tank gauge (ATG) is switched off or not working | MDG 5.1.16(b) |
| Anyone deliberately makes another part of the automation system stop working, fully or partly | MDG 5.1.16(c) |
Only an email or a signed letter from a company official counts as permission, and the dealer keeps a record of it. A phone call or SMS does not MDG 5.1.16. The steps are on the manual mode page.
Tampering with the dispensing unit itself, including its chip, electronic parts or software, is a different and critical irregularity MDG 5.1.4 MDG 8.2. See seals and fittings.
What the penalty is
All three automation irregularities are major, with their own ladder MDG 8.3(vii).
| Instance | Action |
|---|---|
| First | Penalty of Rs 1,00,000 |
| Second | Penalty of Rs 2,00,000 and 7 days' suspension of sales and supplies |
| Third | Termination of the dealership |
What MDG leaves open
- Who the competent authority is. Clause 5.1.16 says "competent authority" and its note says "Company official". No rank is named. Ask your oil company MDG 5.1.16.
- How findings made together are counted. Irregularities found together each count as an instance in their own class MDG 8.5.3, yet the penalty entry lists (a), (b) and (c) as one item MDG 8.3(vii). Ask your oil company. See repeat offences.
Questions dealers ask
01What is NANO at a petrol pump?
NANO stands for "No automation, No Operation". Automated outlets are designed around it, so the dealer must see that the automation works, report any fault to the oil company's authorised official at once and follow that official's direction MDG 1.5(viii).
02What is an automated retail outlet, and what is an ATG?
MDG defines neither. Clause 5.1.16 speaks of an outlet "where automation has been completed" and names the dispensing units, the tank gauge (ATG) and any other part of the automation system, without listing those parts MDG 5.1.16. General knowledge, not MDG text: ATG usually means automatic tank gauge, the device that reads a tank's level; ask your oil company what is installed at your outlet.
03What is the penalty for running an automated petrol pump in manual mode without authorisation?
It is a major irregularity with its own ladder: at least Rs 1,00,000 at the first instance, rising at the second and third, and the oil company may act more strongly MDG 8.3(vii) MDG 8.5.1.
04Is a power backup compulsory at an automated petrol pump?
Yes. The dealer must make sure there is a generator or UPS for a power failure, which matters for automated outlets and electronic totalisers MDG 1.5(ix). MDG lists no separate penalty for lacking one; for matters it does not list, the company acts after an enquiry MDG 8.5.4.
Read the official text: Marketing Discipline Guidelines 2024 (PDF on Bharat Petroleum's website) (also published on iocl.com).
Related pages
About Dealer Kavach (advertisement)
Dealer Kavach is an app from MDG Services that tracks your outlet's filings, renewals, inspections and daily reports, and reminds you before deadlines, in Hindi and English.