New Delhi, March 29
ONGC'S subsidiary Mangalore Refineries & Petrochemicals Ltd (MRPL) has joined hands with Ashok Leyland to form a joint venture company for setting up retail outlets for petroleum products and servicing facilities for trucks.
MRPL and Ashok Leyland Project Services would have equal equity contribution of 26 per cent each in the proposed venture. The balance 48 per cent equity will be offered to financial institutions and other strategic investors, a company release said.
MRPL has been authorised by the Ministry of Petroleum & Natural Gas to set up 500 retail outlets in the country. These outlets will be set up at locations along various National and State highways. Ashok Leyland, which has a network of service stations across the country for servicing heavy vehicles (buses and trucks) and sale of spares, is also associated with Gulf Oil Corporation Ltd (GOCL) engaged in manufacturing and marketing of lubes under the brand name `Gulf'.
The joint venture will comprise MRPL and Ashok Leyland Project Services Ltd (representing the interests of Ashok Leyland and GOCL). The venture will set up some of the retail outlets (out of the 500 authorised to MRPL) at identified locations. The venture will also operate and manage the outlets on agreed commercial terms.