MRPL's expansion capacity will reach 21 metric tonne per annum by 2021'

Mangalore, September 16: The nameplate capacity of Mangalore Refinery and Petrochemicals Ltd (MRPL) will go up to 21 million tones (MT) from the present capacity of 12.82 MT by 2021. The capacity is all set to go up to 15 MT once phase III expansion project of MRPL is fully operational by the end of this fiscal. The refinery will also see a capacity expansion to 18MT by the end of the current five year plan on the basis of revamp of existing units in phase I and II.

Sudhir Vasudeva, chairman, MRPL and CMD, ONGC Ltd briefing reporters at the end of 24th annual general meeting of MRPL here on Saturday said the proposed capacity expansion to 21 MT is as per the plan perspective of the ONGC group. MRPL is a subsidiary of ONGC. "We have drawn up a perspective plan ONGC 2030 and this will see the capacity of MRPL raised to 18 MT first, and then to the proposed capacity of 21 MT," Sudhir Vasudeva explained.

The expansion project is as envisaged in a memorandum of understanding signed with the state government at the recently concluded Global Investors Meet 2012, Vasudeva said adding it would entail an investment of Rs 8000 crore. Vishnu Agarwal, director (finance), MRPL said while the capacity increase to 18 MT will be on the strength of inhouse efforts, there is need for additional infrastructure to take it to the projected capacity of 21MT in the next nine-years.

PP Upadhya, managing director, MRPL pointed that the successful commissioning of the crude distillation unit and the vacuum distillation unit of phase III project on March 29, two-days ahead of the sunset date for availing benefits under section 80(B) of the Income Tax Act has given a big boost in increasing refining capacity to 15MT. However, continuous delays in captive power plant being built by BHEL are hampering scaling up refining capacity to the 15 MT, he said.

On the first quarter loss of Rs 1,521 crore this fiscal, Upadhya said this is a cyclic phenomenon. Noting that things had improved vastly in the second quarter, Upadhya who hoped for better numbers said the issue of water shortage that forced MRPL to shut operations for more than 10-days in April this year will be addressed in time before next summer. The state government has sanctioned an additional 2.5MGD of water for sustained operations, he added.