MRPL’s capacity to rise by 21 million tons by 2021

MRPL’s capacity to rise by 21 million tons by 2021

Mangalore Today News Network

Mangalore, Sep 15, 2012: The Mangalore Refinery and Petrochemical Limited’s (MRPL) capacity is expected to rise to 21 million tons from the current capacity of 12.82 million tons by 2021. Once the third phase expansion project becomes functional by the end of this fiscal year, the capacity is expected to rise to 15 million tons. Besides, the MRPL will witness a capacity expansion to 18 million tons by the end of its current five-year plan depending on the renovation of its first and second phases. 

The above information was revealed by Sudhir Vasudeva, chairman of MRPL and CMD of ONGC Limited, after the MRPL’s 24th annual general meeting on Saturday.

Further, he said that the proposed capacity expansion to 21 million tons is according to ONGC’s plan. The MRPL, which is a subsidiary of ONGC, has drawn up a plan called ONGC 2030, according to which MRPL’s capacity will be raised to 18 million tons first and then to 21 million tons. 

Mr. Vasudeva said that the expansion project is outlined in an MoU signed with the Government of Karnataka during the Global Investors Meet of 2012 and will entail an investment of Rs. 8000 crore. 

Vishnu Agarwal, director (finance) of MRPL, said that, while the capacity rise to 18 million tons will be based on the in-house efforts, the MRPL needs better infrastructure to raise the capacity to 21 million tons in the next nine years. 

MRPL MD P. P. Upadhya said that the successful commissioning of the crude distillation unit and vacuum distillation unit of the third phase on March 29, two days before the deadline to avail benefits under Section 80 (B) of the Income Tax (IT) Act has boosted the refining capacity of the plant to 15 million tons. 

Commenting on the MRPL’s loss of Rs. 1,521 crore during the first quarter of this fiscal year, Mr. Upadhya called it’s a cyclic phenomenon, adding that things improved during the second quarter.

Stating that he was hoping for a better financial report, Mr. Upadhya said that water shortage issues, which forced the shut down of the MRPL for over 10 days this April, will be addressed well in advance next year, adding that the state government has sanctioned 2.5MGD extra water to the MRPL for operational purposes.