The board of Mangalore Refinery and Petrochemicals Ltd (MRPL) has set up a committee of directors to explore the possibility of taking over OMPL's Rs.1 billion petrochemical plant adjacent to its refinery. ONGC Mangalore Petrochemicals Ltd (OMPL), where MRPL recently raised its stake to 51%, is setting up an aromatic complex adjacent to the Mangalore Refinery at a cost of Rs.6,400 crore. The unit is to use naphtha produced at the Mangalore Refinery to make raw material for manufacture of Polyester as per livemint.com.
MRPL said its board in a meeting on Thursday “approved the formation of an Empowered Committee of Directors, consisting of (company) Managing Director H. Kumar, Director (Finance) Vishnu Agrawal and Director (Refinery) M. Venkatesh, to explore and evaluate various options available for the restructuring/ integration of the company and OMPL”.
The objective behind the exercise is to “primarily bring about better synergy across the group, and to ensure that the businesses of these entities are operated in the most efficient and cost effective manner”, MRPL said. Upon completion of evaluation of the possible restructuring options, the ECoD is to submit recommendations to the Board.
OMPL is jointly promoted by ONGC and MRPL for manufacturing 0.9 mln tpa of paraxylene and 0.3 mln tpa of benzene from the aromatic streams of MRPL. ONGC also holds 71.63% stake in MRPL, Hindustan Petroleum Corp Ltd (HPCL) has 16.96% while the rest is with public. ONGC holds 49% stake in OMPL which is building a Rs.6,400-crore Aromatic Complex in Mangalore Special Economic Zone.
10-Apr-15 
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