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Issues pertaining to MRPL, OMPL, MESZ and ISPRL

Minister for Petroleum & Natural Gas addressed on various issues pertaining to MRPL, OMPL, MESZ and ISPRL.

The need to plan for development of an integrated petro-chemical project at Mangalore based on the (downstream) products produced by MRPL Refinery and OMPL was emphasized upon. MD, MSEZ raised the following issues most of which require action by Government of Karnataka for smooth functioning of MSEZ.

  • Delay in getting environment clearance from Ministry of Environment & Forest for widening of roads towards river side in Reach-I
  • Acquisition of additional land for corridor
  • Providing of enhanced funding by Government of Karnataka for replacement/strengthening Thumbe Barrage which is reportedly not progressing due to budgetary issues
  • Delay in reimbursement of VAT
  • Import substitution issues to be taken up with M/o Commerce

Chairman directed that since most of the issues pertain to Government of Karnataka, they may be raised during his next visit to Bangalore.  If necessary, a meeting will be held with the Chief Minister of Karnataka to resolve the issues. It was also directed that the matter relating to import Substitution Project may be taken up with concerned Ministries/Departments including Ministry of Commerce and Chemicals & Fertilizers. For this MSEZ was directed to give a detailed note to MoPNG, (Deputy Secretary (Refineries)} urgently. The issue relating to environment clearance needs to be pursued with the Ministry of Environment & Forest. MSEZ was directed to furnish necessary notes on all the issues to MoPNG urgently.

As regards, signing of agreement between MSEZ and ISPRL, CEO, ISPRL mentioned that there are certain pending issues between MSEZ and ISPRL which need further negotiations. After detailed discussions, it was decided that the land lease agreement may be finalised within next 10 days after obtaining the approval of ISPRL Board, if necessary. This agreement may exclude any issues that need to be further negotiated.

Chairman expressed concern about delay in laying of pipelines to the cavern at Mangalore. CEO, ISPRL mentioned that EIL has already issued the NIT and they expect to place the orders by April, 2014. The entire work is expected to be completed by October, 2014. Chairman directed that all stake holders should ensure that these timelines are met.

MD, OMPL mentioned their project, the pre-commissioning and commissioning activities are under way and full commissioning is expected to be completed by February, 2014. He also mentioned the need for getting the approval of Government of Karnataka for treatment of different units as a single industrial township to obtain exemption from local taxes.

Chairman stressed the need to maintain the timelines and informed that he would take up the matter regarding the various state issues with the Government of Karnataka during his next visit the State.

MD, MRPL informed that the companies are working towards developing an integrated petro-chemical complex as directed by the Chairman in the last meeting held on 07.12.2013 and that MRPL can supply additional products to downstream industries in the proposed complex. He requested that more land may be provided by MSEZ/KIADB to MRPL for the purpose as it would be very difficult for the company to acquire land. Chairman directed that a detailed note may be given to him so that he can take up the matter with Chief Minister, Karnataka for allotment of additional land to MRPL.

MD, MRPL thereafter informed about delay in Commissioning of Phase-Ill of its expansion project due to non-availability of required power and steam. In particular, he mentioned the delays on the part of BHEL and repeated extension of timelines by them for the completion of the power plant. Representatives of BHEL accepted that there were delays on their part and informed that they hope to complete the entire commissioning of power project in phases by February-March, 2014. Representative of BHEL also raised the issue of non-availability of right type of fuel in MRPL which was contested by MD, MRPL. It was felt that DUEL may explore installation of filtration systems as in other refineries to solve this problem. Chairman expressed his unhappiness about non-adherence to earlier commitments given by BHEL and directed that the matter may be taken up at higher level to expedite the commissioning of power projects by BHEL not only at MRPL but also at other projects of the oil PSUs.

MD, MRPL raised issues relating to wharfages charges by NMPT and PRP. Chairman directed that a detailed note on issues relating to NMPT may be sent separately to JS(R) for convening a meeting at the level of Secretary, P&NG and Secretary, Shipping to resolve the issues as CMD, ONGC has mentioned that some other similar issues also need to be resolved.

Chairman directed to prepare a road map/master plan for downstream sector and for organizing a road show in Mumbai preferably within a month's time to promote the development of downstream industries on the basis of the products being developed under the ongoing projects of MRPL & OMPL.

Source-On Request