Mangalore Refinery and Petrochemicals (MRPL) is augmenting its refining capacity from 9.6 mmtpa to 15 mmtpa.
The preparatory work has been on for sometime now and the mandatory approvals have also been secured and process licensors appointed, the comapny release said.
MRPL Managing Director U K Basu said: "While phase III was to have achieved mechanical completion by June 2010 and the original estimate was Rs 7,943 crore, we have been beleaguered by an overheated market hampering appointment of process licensors, delay in land acquisition and the steep increase in steel and cement prices in the last 12 to 18 months."
Setting the new completion date at October 2011, he said the project estimate stands revised to Rs 12,412 crore as approved by MRPL Board as well as by ONGC Board under Navratna empowerment.
The mega project will be founded through a 2:1 debt equity ratio. The equity portion will be financed using the MRPL internal accruals and the debt would be raised from the market.
It is estimated that about 88 per cent of the plant and machinery cost will be sourced indigenously and the balance 12 per cent needs will be imported.
