Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of Oil and Natural Gas Corporation, plans to raise around Rs10,000 crore (about $2.1 billion) to boost its refining capacity by over 50 per cent and build a petrochemicals plant.
MRPL, which is 72 per cent owned by state-run Oil & Natural Gas Corp, plans to raise Rs4,000 crore in foreign-currency denominated debt, reports quoted ONGC's finance director D K Sarraf as saying.
Besides, MRPL will borrow Rs5,000 crore from its parent ONGC and another Rs1,000 crore from the government's Oil Industries Development Board.
The ONGC board has approved a proposal to lend Rs5,000 crore ($1.07 billion) to MRPL for the phase-III of refinery expansion and its petrochemical project.
MRPL will use the funds also for setting up a single-point mooring facility near the Mangalore port to receive crude oil in very large tankers.
MRPL plans to spend a total of around Rs12,500 crore to expand its annual crude oil processing capacity to 15 million tonnes from the current 9.69 million tonnes.
The expansion plan also includes a 440,000 tonne capacity polypropylene unit, to be set up at a cost of around Rs1,800 crore.