MRPL is hoping BHEL will commission its captive power plant for phase-III unit by September-end.
The power plant is key to the commissioning of phase-III, as the margin-driving units of phase-III are dependent on its commissioning.
The annual report of Mangalore Refinery and Petrochemicals Ltd (MRPL) for 2011-12 said the two margin drivers of the company — the petro-fluidised catalytic cracking unit (PFCCU) and the delayed coker unit (DCU) — can be commissioned only on availability of steam and power from BHEL’s captive power plant of phase-III.
The pre-commissioning activities of many other units of phase-III are nearing completion, drawing on steam and power from the existing facilities of phase-I and phase-II.
“It is expected that BHEL will be able to commission the captive power plant by the end of September, as assured by it,” the report said.
According to the original schedule, the plant should have been commissioned in April 2011. The power plant will supply around 110 MW to the refinery.
The annual report said: “your company has perceived risk as regards supply of utilities, namely steam and power from the captive power plant of the phase-III unit, being built by BHEL, due to continuous delay.”
The company said it is expecting delays from Mangalore Special Economic Zone Ltd for upcoming facilities such as water pipeline, infrastructure for effluent disposal, and corridor for the movement of trucks and other vehicles.
This could impact the operation of phase-III, it said.
MRPL took up the phase-III project in 2008 to expand the processing capacity of the refinery to 15 million tonnes a year, and to upgrade the low-value output into high-value products.
Shortage of water and depleted reservoirs, following a poor monsoon, could also impact the refinery’s operation, it said.