Delay in land acquisition. MRPL incurs massive loss

20 Jul '10

2 min read

Mangalore Refinery & Petrochemicals Ltd, (MRPL) an ONGC group company and a mini ratna, had launched its Phase III Expansion cum upgradation project, at a budget of Rs.15000 Crore, to expand the refining capacity by an additional 3 MMTPA ( Million Metric Tonnes per Annum) and to produce superior-end products that is the need of the hour for the emerging environment and market norms. The target for mechanical completion is October 2011.

Levelling of Patro family land is pending for the past one year and since it is under dispute and Shri Gregory Patrao is yet to vacate the premises, the loss incurred has been around Rs.600 Crore so far, in addition to the loss to the exchequer. Besides the entire Phase III Project itself, which is the Nation's requirement, is getting set back.

During the acquisition of land for Phase III, all project displaced families had willingly handed over their land, considering the larger cause of the Nation's progress. And since all of the site surrounding the Patrao family land has been acquired, MRPL had proceeded with the Project work and has already achieved 46% progress and as on 31.5.10, MRPL has already committed an amount of Rs.9638 Crore.

It is a matter of concern that the Project cannot be commissioned in its totality without the Patrao family land and non availability of the same, in time, could severely affect the project completion and may have a further huge impact on the overall financials of the Project.

Mangalore Refinery and Petrochemicals Limited (MRLP)

More Mangalore Refinery and Petrochemicals Limited (MRLP) News... More Textiles News - India...