The Hindu Business Line : MRPL mandates SBI Caps to raise Rs 5,000 cr to fund projects

Chennai, Nov. 5 Mangalore Refineries and Petrochemicals Ltd has mandated SBI Capital Markets Ltd to raise Rs 5,000 crore for its refinery expansion and petrochemical projects, MRPL’s Managing Director, Mr U.K. Basu, told Business Line today.

MRPL is involved in three main projects. It is expanding its refining capacity from 9.6 million tonnes (of crude throughput) a year, to 15 million tonnes. This project is estimated to cost Rs 12,160 crore.

The company is putting up a Rs 1,804-crore project to produce 440,000 tonnes a year of polypropylene.

In addition, ONGC Mangalore Petrochemicals Ltd, a joint venture of MRPL and its parent company, ONGC, is putting up a Rs 5,700-crore project to produce 905,200 TPA of Para-xylene and 337,900 TPA of Benzene a year.

On the sidelines of a Refining Technology Meet, organised here by the Centre for High Technology and sponsored by Chennai Petroleum Corporation Ltd, Mr Basu told that the refinery expansion project and the polypropylene project are being executed with a debt-equity mix of 2:1.

He said the refinery expansion project is 22 per cent complete and is on schedule to go on stream by October 2011. Contracts worth Rs 8,200 crore have been awarded, he said. Engineers India Ltd is doing the job on a turnkey basis.

The polypropylene project is expected to go on stream by January 2012. The American company, UOP, is the process licensor for the project and again EIL has the contract for implementation.

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