ONGC to lend to MRPL for expansion projects

20-Jan-10

State refiner Oil and Natural Gas Corporation (ONGC) will lend Rs.5000 crore to its subsidiary Mangalore Refinery and Petrochemicals (MRPL) for it's expansion projects. MRPL plans to expand refinery capacity to 15 mln tpa from the current 9.68 mln tpa, at an investment outlay of Rs.12160 crore. It also plans to set up a 4,50,000 tpa propylene unit at an outlay of Rs.1804 crore. Both projects are scheduled to be commissioned by March 2012. MRPL would import 12.1 mln tons of crude in the next fiscal year, compared with 12.5 mln tons last year. MRPL plans to spend Rs. 5000 crore from internal accruals and raise the balance Rs. 4000 crore in overseas debt by March finance its expansion. MRPL has posted fiscal Q3 net profit of Rs 259.5 crore vs a net loss of Rs 285.4 crore in the previous year.