Press Trust of India (PTI) cited a top source as saying that ONGC-Mangalore Petrochemicals (OMPL) and MRPL have lot of collaborations and so OMPL makes better economic and business sense that this project be merged with MRPL.
ONGC holds 46% stake in OMPL, which is currently constructing INR6,400-crore Aromatic Complex in Mangalore Special Economic Zone, with MRPL 3% while the remaining 51% equity is yet to be allocated.
Being set up on 442 acres of land acquired in Mangalore Special Economic Zone, the Aromatic Complex will be totally integrated with the adjacent MRPL refinery.
"OMPL and MRPL have too many synergies, and plant configuration will be most optimal if they are merged," the source added.
Feed stock naphtha will be supplied by MRPL refinery to OMPL, which will then convert it into paraxylene and benzene.
According to the source, 46% stake of ONGC in OMPL will be sold to MRPL at market value upon commissioning of the petrochemical complex.
Scheduled to be commissioned by August, the Aromatic Complex will produce 0.9 million tons per annum of Paraxylene and 0.3 million tons of Benzene as well as small amounts of LPG, fuel gas and hydrogen.
