The Hindu Business Line : MRPL aims for `zero' exports next fiscal

Mangalore Refinery and Petrochemicals Ltd, which exported 1.9 million tonnes of products in nine months ended December 31, 2003, will try to sell most of its product within India, a senior official said.

"We are aiming at almost zero exports in 2004-05. We hope we can achieve total evacuation of products within the country," Mr J. Mohan Gugnani, President (Marketing) told Business Line.

In the first half of this financial year, MRPL exported products worth Rs 1,525 crore against Rs 692 crore during the same period last year; second only to Reliance Industries Ltd. The company mostly exports diesel, naphtha and furnace oil.

"This year, we have tied up with other oil marketing companies for offtake of our products, for the first time. We hope to restrict exports as far possible," Mr Gugnani said.

The 9.69 million-tonne MRPL refinery has been working full capacity for the first time this financial year. ONGC took over the management control of the erstwhile A.V. Birla group-HPCL joint venture in 2002. After completing its financial restructuring, the new management has negotiated with public sector oil companies Indian Oil, BPCL and HPCL for better representation of MRPL in their `industry logistics plan' or mutual product offtake agreement.

While this may help the company cut down on diesel and furnace oil exports, naphtha surpluses will come down due to the naphtha cracker to be set up at Dahej.

MRPL has also signed an agreement with Shell India for selling products as and when the latter sets up its network for selling transport fuels in the country.