Mangalore refinery faces 57 per cent loss

New Delhi, Apr 16 (UNI) State-owned oil production major, Oil and Natural Gas Corporation (ONGC) today said it will invest Rs 45,000 crores in Mangalore Special Economic Zone (SEZ), but its Group Company Mangalore Refineries and Petrochemicals Limited (MRPL) has posted a loss of 57 per cent on account of oil marketing companies collectively deciding to deviate from Refinery Gate Price Formula and forcing discounts on LPG and other petroleum product prices.

''Withdrawal of 'target plus' benefit scheme on exports during the current year also impacted the profits,'' ONGC group, Chairman and Managing Director (CMD), Subir Raha said.

However ONGC will pump in Rs 45,000 crore in building refinery, Petrochemicals, C2-C3, Liquified Natural Gas (LNG) and Power projects in Mangalore, Special Economic Zone (SEZ). There would also be a capital expendiure of Rs 8,000 crores for the integrated refinery upgradation Project. The Capacity of the refinery will be enhanced from the present 9.69 Million Metric Tonnes Per Annum (MMTPA) to 15 million MMTPA and the refinery yield will be upgraded to imrove its distillate yield to 84 per cent.

An aromatics complex, at an investment of Rs 4,800 crores on fast track for 9,00,000 million tonnes per annum para-xylene has been approved by the ONG and MRPL boards.

The revenue from direct sales increased by 227 per cent to Rs 1,419 crores compared to the previous year. Export sales almost doubled, going up by 92 per cent to Rs 11,920 crores compared to Rs 6,185 crores in the previous year, Mr Raha said.

UNI RT MP GC1656