MRPL shifts focus to chemicals, shelves refinery expansion

08 Jun 2023 CW Team

India's Mangalore Refinery and Petrochemicals has decided to cancel its planned refinery expansion in order to focus on increasing its petrochemical production capacity, which could amount to Rs 470 billion.

The company is shifting its efforts towards boosting the production of chemicals used in plastics and paints, driven primarily by the changing energy landscape influenced by the growing popularity of electric vehicles. The company's main investment will be directed towards a new production plant in Karnataka. Indian and Chinese refiners, as well as major players like Exxon Mobil Corp., are placing their bets on petrochemicals to support future oil demand as the transition to electric vehicles gradually reduces the consumption of transportation fuels.

The new MRPL plant is expected to become operational within the next three to five years. India, being a net importer of petrochemicals, is faced with a "make-or-buy" decision. There is a greater value in local production.

MRPL was primarily owned by state-controlled Oil and Natural Gas Corp. (ONGC), plans to allocate approximately Rs 300-400 billion for the new plant, with an additional Rs 60-70 billion for smaller petrochemical units. This investment will help mitigate risks for MRPL's future during the energy transition.

ONGC intends to spend a total of Rs 1 trillion to expand its petrochemical capacity to 8 million tonne per year by 2030, up from the current 3.4 million tonne.

Also read:
Focus on smaller refineries to overcome land acquisition challenges
India’s oil imports down by 8.3% in April y-o-y

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..