A PESO License is a mandatory regulatory certificate issued to individuals or companies that store, manufacture, or use inflammable substances. This includes petroleum products, gas cylinders, fireworks, explosives, pressure vessels, and solvents.
The license is issued only after verifying the location, infrastructure, safety systems, and compliance with Indian standards. PESO has an aim to prevent accidents, protect human lives, and reduce industrial disasters.
If an entity fails to obtain a PESO license but continues operations, it risks legal penalties, shutdowns, and irreversible losses. The license also boost trust in clients and regulatory agencies.
Legal Basis and Regulatory Acts Rules under PESO Authority
PESO's authority and functions derive from several key acts and rules:
| Legislation / Rule |
Year / Version |
Purpose / Scope |
| Explosives Act, 1884 |
1884 |
Governs manufacture, storage, use, sale, transport of explosives. PESO enforces rules under this. |
| Explosives Rules, 2008 |
2008 |
Rules framed under the Explosives Act for specific procedures, licensing, and safety norms. |
| Petroleum Act, 1934 |
1934 |
Governs petroleum and petroleum products (like storage, transport, possession) |
| Petroleum Rules, 2002 |
2002 |
Rules under the Petroleum Act, for licensing, safety measures, etc. |
| Gas Cylinders Rules, 2004 |
2004 |
Regulates filling, transport, design, and safety of compressed gas cylinders. |
| Ammonium Nitrate Rules, 2012 |
2012 |
For regulation of ammonium nitrate, which is used as an explosive or fertilizer. |
| SMPV (U) Rules, 2016 |
2016 |
“Static & Mobile Pressure Vessels (Unfired)” Rules for pressure vessels not involving combustion; PESO regulates under these as well. |
| Inflammable Substances Act, 1952 |
1952 |
Governs handling of flammable substances not covered in other acts. |
| Calcium Carbide Rules, 1987 |
1987 |
Rules regulating calcium carbide, which can evolve acetylene. |
PESO administers and enforces these Acts and Rules with respect to manufacture, import, export, storage, transport, possession, sale, and use of hazardous substances (explosives, petroleum, compressed gases, etc.).