PROJECT UPDATE
Mangalore Refinery and Petrochemicals Ltd, a subsidiary of Oil and Natural Gas Corporation Ltd, has assured the ministry of petroleum and natural gas that it will complete the phase-III refinery project in Mangalore a few months ahead of the targeted deadline of November-December 2011. The company has now set October 2011 as the completion target.
MRPL has replied to the ministry’s query concerning problems being faced by the company in executing the project. The company also informed the ministry of the increase in the cost of the project from Rs 7,943 crore approved earlier to Rs 12,412 crore now.
The refinery project aims to improve distillate yield by eliminating black oil pool, meeting Euro III & IV specifications for the entire diesel pool, and increasing crude processing capacity from 9.6 million tpa to 15 million tpa.
However, the phase-III refinery project has seen delays and cost escalations due to various reasons such as land acquisition, finalisation of unit configuration, award of work contract for process packages and Secretariat of Industrial Approvals as well as due to longer than scheduled duration (two months) required by the licensors for process packages, delay in receipt of environment clearance and the consent of the state pollution control board.
As reported by Projectmonitor, MRPL also confirmed that there were issues over the project execution methodology but these had been sorted out
Source : projectsmonitor
|