MRPL to invest in plant upgrade
The Mangalore Refineries and Petrochemicals Ltd (MRPL) proposed to invest Rs 1,300 crore over a period of time in
improving plant and upgrading products, Oil and Natural Gas Corp chairman Subir Raha said. The ONGC owns 72 % equity
in MRPL, which has a capacity of 9.69 mm tpy, around one-tenth of the total domestic refining capacity. Raha told
that the investment would be made for improving the plant and product upgradation.
"About Rs 1,300 crore over a period of time. It is being phased out, some of them are beginning and some of them will
come in 2005-06," he said.
Raha said the plant was running at 120 % of its production capacity at an annualised production of 12 mm tpy.
ONGC, a fully-integrated petroleum major, has also got the marketing rights to retail diesel through 1,100 retail
outlets and holds a 23 % stake in the Rs 667 crore 360 km-long Mangalore-Hassan-Bangalore pipeline.
Asked about crude prices, Raha said global crude prices are likely to remain firm and added that none could predict
its volatility.
He said the sales tax dispute with Karnataka for MRPL produce has still not been solved. The MRPL produce cost higher
in the state due to high sales tax, he added.
