The Hindu

Agreements with airlines expected to be signed soon 

• At present IOC supplies ATF at Bajpe airport
• MRPL to increase retail outlets to 15 by March 2008

Mangalore, Sep 15: Mangalore Refinery and Petrochemicals Ltd. (MRPL) is awaiting clearance from the Airports Authority of India (AAI) to supply aviation turbine fuel (ATF) directly to aircraft operating to and from the Bajpe airport here from its refinery, MRPL Managing Director R Rajamani has said. At present, Indian Oil Corporation is meeting the ATF needs of aircraft from its terminal on the airport premises, he said.

Addressing presspersons after the 19th annual general meeting of MRPL here on Friday September 14, he said in order to earn better margins, the company had decided to market ATF directly to airlines and agreements were expected to be signed shortly. MRPL, with approval from the Ministry of Petroleum and Natural Gas, had placed orders for ATF bowsers and was expecting them by end of next month, he said.

Stating that MRPL was in touch with airport authorities in Bangalore, Goa, and Kozhikode, to supply ATF to aircraft there, Rajamani said there were a few technical and administrative issues to be sorted out in this regard. MRPL was also in touch with authorities of the international airports in Bangalore and Hyderabad and expected the agreements for supply of ATF to materialise during the next fiscal, Mr. Rajamani said.

Referring to major refinery upgradation-cum-expansion project involving an expenditure of Rs 7,943 crore at MRPL, Rajamani said the process was under way. The selection of major licensors for the main units was nearing completion. This project would enhance the refining capacity to 15 million tonnes a year from the existing nine million tonnes a year and would enable the company to produce new value-added products, he said.

Toyo Engineering India Ltd. had been appointed the project management consultant in February this year, and the project was expected to be complete by December 2010, Rajamani said.

In view of large under-recoveries from large consumers and retail consumers, MRPL was proceeding cautiously on domestic direct sales and development of retail outlets. However, MRPL would strive to increase its retail outlets to 15 by the end of March 2008, he added.