The Karnataka government has sanctioned a special incentive package to Mangalore Refinery and Petrochemicals Limited (MRPL), an ONGC company, for the Phase-3 expansion and upgrade. The package includes exemption from payment of entry tax on plant and machinery and capital goods during the initial period of four years from the date of commencement of project implementation.
MRPL recently completed its third phase expansion at its refinery in Surathkal near Mangalore, involving an investment of Rs 15,000 crore and commissioned the operations. With this expansion, the combined refining capacity of MRPL has touched 15 million tonnes per annum. In the third phase, the company has increased its capacity by 3 MMTPA.
The company has inve-sted close to Rs 10,000 crore for the first two phases of expansion. In the first phase, the company installed 3 MTPA capacity and increa-sed it to 12 MTPA in the second phase.
However, its poly propylene unit is still under construction and is likely to be commissioned next year, a company official said.
The state government has also exempt MRPL from paying entry tax on the crude oil required for third phase over and above the refining capacity of first and second phase for 15 years from the start of the comm-ercial production of third phase. It has provided exe-mption on CST for 15 years from the date of commencement of commercial production of third phase for all interstate sales made from the phase-3 throughput, the company said.
The government has also extended interest-free soft loan at the rate of 100 per cent of the eligible gross VAT during the first three years and thereafter at 60 per cent of the eligible gross VAT, on the sale of poly propylene, petroleum coke, LSHS, naphtha, LPG (incremental production), Mixed xylenes and ref-ormate to non-SEZ units for 15 years to be repaid in 15 years equal annual inst-allments thereafter, limited to Rs 500 crore per annum. The state government had exte-nded special incentive to the company for the first two phases also.
MRPL also plans to expand the capacity and is likely to sign a memorandum of understanding with the Karnataka government during the Global Investors’ Meet in Bangalore on Thursday, U K Basu, Managing Director, MRPL said.
