Mumbai: Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of Oil and Natural Gas Corporation (ONGC), plans to raise refining capacity to 15 million tonnes by 2010, involving investments of over Rs7,943 crore, its managing director R Rajamani said.
"The increased refining capacity will give us an incremental gross margin of Rs1,907 crore per year ($3.5 per barrel) and a 16.34 per cent rate of return," Rajamani said
The refinery has already set up an isomerization unit, which will help it produce Euro-IV grade petrol from next month.
"MRPL was the first in the country to produce Euro-III products and now it will be the first to launch Euro-IV grade fuels," Ramani added. MRPL is also building an aromatics complex at a cost of Rs4,852 crore.
Naphtha produced at MRPL – which is expected to go up post expansion – would be used as feedstock for producing paraxylene and benzene, he said. MRPL expects the project to give a 17.11 per cent rate of return on investment.
MRPL is also setting up an olefin complex, for which state-owned Engineers India Ltd has been asked to prepare a detailed feasibility report, ONGC chairman and managing director, and also MRPL chairman, R S Sharma said
The company has acquired over 100 hectares of land for the project and selection of management consultants is likely by mid-January.