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“We have been pushing BHEL to complete the power plant for the last six months. All other units as part of our expansion are ready. If BHEL completes its work, we would be able to commission the entire Phase-III by September,” said P P Upadhya, chairman and managing director. The company is a subsidiary of state-run Oil and Natural Gas Corp Ltd.
The fluid catalytic cracking (FCC) and coker units are completed and partial works might begin at the coker unit by the end of this month. The company will not be able to start the polypropylene unit unless FCC, dependent on the 110-megawatt power plant, starts operations.
Through Phase III, MRPL wants to add another three million tonnes (mt) per annum capacity. MRPL is funding the project at 2:1 debt-equity ratio. The Phase-III plan would eventually increase MRPL’s capacity from 9.6 mt to 15 mt.
Meanwhile, MRPL is finding it difficult to secure insurance cover for Iranian crude oil imports, following the US sanctions on that country. MRPL is the largest importer of Iranian crude in India and the company’s insurance due date is in May. According to sources, till now, the company hasn’t found any cover from insurance companies.
If the impasse is not sorted, MRPL would be forced to stop crude import from Iran. Because of the new sanctions, countries would have to go for payment through exchange of goods or in local currency.
Though insurance companies have assured Rs 250-crore cover for shipments, reports suggest they will not be able to reinsure it in the European markets to hedge their risks. MRPL’s imports from Iran are down 39 per cent from 6.2 mt last financial year to 3.8 mt in 2012-13.
