MRPL Phase III expted to be commissioned in Jan 2012 - Chairman Hazarika

Mangalore Today News Network

Mangalore, August 28: A. K. Hazarika, the chairman of Mangalore Refinery and Petrochemicals Limited (MRPL), said that Phase III of MRPL, which is to be implemented with the purpose of enhancing profitability by raising refining capacity to 15 MMTPA, might be commissioned by January next year. He was interacting with reporters after the 23rd annual general body meeting at MRPL on August 27, Saturday.. 

Further speaking about Phase III, he said that when it is finally implemented, MRPL will be able to process higher sulphur/high acid and heavy crude oils, produce value-added products such as propylene, and upgrade its total diesel pool to superior Euro III/Euro IV grade.

 

Stating that the total cost of Phase III is Rs. 12,160.26 crore, Mr. Hazarika said that the value of orders placed on July 15 is Rs. 10,194 crore and that the project has achieved an 86.2 percent progress as opposed to the schedule target of 97.4 percent on Aug 15. He also said that the project implementation is progressing in a satisfactory manner to meet the commissioning target for Jan 2012 and to avail tax benefits on commissioning before March 2012. 

Speaking about the growth of MRPL, he said that the company has raked in a net profit of Rs. 1,177 crore as against the Rs. 1,112 crore net profit of last year. MRPL has also registered the highest ever turnover at Rs. 43, 800 crore with highest ever refinery crude throughput at 12.64 MMT, he added. 

Further, he said that the company plans to launch 122 outlets in Phase I during the next one or two years with an investment of Rs. 87 crore, but only if the market remains stable. He also said that MRPL has the license to open 500 retail outlets, but is continuing with only one outlet in Hubli to avoid losses. He said that an outlet was supposed to come up at Kadri, but is pending. 

Stating that MRPL’s market share in sale of sulphur and bitumen is 93 percent and 63 percent, respectively, he said that the direct sale of these products has resulted in a turnover of Rs. 2,271 crore. 

Regarding the Single Point Mooring (SPM) project, he said that it will conclude on May 2012 and that MRPL has already obtained environmental clearance from the ministry of environment and forests, Government of India. When this project is completed, MRPL can receive crude oil from very large crude carrier (VLCC) through a pipeline that will be laid in the sea, around 16km from NMP. 

Responding to fishermen’s concerns regarding MRPL’s activities, MD U. K. Basu said that such pipelines have already been laid in other parts of India and that they will not have an adverse effect on fishing activities. 

P. P. Upadhya, the director (technical) of MRPL, and Vishnu Agarwal, the director (finance), were also present.