Mumbai, Feb 5: Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of ONGC, today entered into an agreement to form a Joint Venture with Shell for domestic marketing of Aviation Fuel.
The Joint Venture Agreement was signed by MRPL Managing Director R Rajamani and Vice President Shell Aviation Sjoerd Post, ONGC said in a release here. The JV would be effective from March 1, with the Company incorporated as a private limited company with an initial equity of Rs 30 crore. It would be based in Bangalore.
The Joint Venture would be exclusive in nature and both MRPL and Shell would route all their future marketing activities for ATF through the JV.
Shell would provide the technical service to the Joint Venture free of cost, the release said.
The JV would initially commence marketing of ATF at Bangalore and Hyderabad, and later expand its operations to other airports in the country. JV would refuel foreign aircraft in Indian airports and also contract refuelling of Indian aircraft at foreign airports through Shell affiliates.
Commenting on the new MRPL venture, ONGC Chairman and Managing Director said it would cater to the rowing Indian aviation sector and catalyse the marketing activities of MRPL.