Mangalore Refinery and Petrochemicals Ltd (MRPL) has said there is no proposal for the merger of MRPL with HPCL.
Replying to the queries of shareholders at the 36th annual general meeting of the company on the virtual platform on Thursday, M Shyamprasad Kamath, Managing Director of MRPL, said MRPL, being a subsidiary of ONGC, will be directed by the decisions and the directions coming from its parent.
Referring to the statement made by the the Union Minister of State for Petroleum and Natural Gas, Suresh Gopi, in Rajya Sabha recently, he said the company understands there is currently no proposal under consideration for a merger between MRPL and HPCL.
In a written reply in the Rajya Sabha recently, Suresh Gopi said that the merger of organizations is based on business requirements, feasibility, and economic considerations. The Minister replied: “There is no proposal at present under consideration for the merger of MRPL with HPCL.”
Kamath said the amalgamation of MRPL’s subsidiary -- OMPL -- has already been completed with MRPL.
When shareholders wanted to know the investment roadmap, he said MRPL is devising strategic initiatives with a dual focus on risk management and wealth creation. Stating that the company is exporting around 34 per cent of its products, he said, “We are aiming to reduce this by establishing a strong presence in the retail market.” To achieve this, the company is aiming to sell 1 million tonnes of products in its retail outlets in the next three to five years.
Asked about the impact of geopolitical tensions in West Asia, Kamath said the company has been focusing on reducing its dependence on West Asia for crude oil supplies. Stating that the company used to import around 50 per cent of its requirements from West Asia a few years ago, he said it has been reduced to around 35 per cent in the last three years.
The company’s refinery processes at least three-five new crude oil grades every year. Expansion of crude oil sources ensures that the company is ready to source crude from other sources in any situation, he said.
To a query, Kamath said the company aims to reduce its carbon footprint by 20-25 per cent by 2028-29 and meet its net zero targets by 2038.
When shareholders wanted to know about implementing AI (artificial intelligence) in the company’s operations, he said MRPL had implemented an AI policy. “We are focusing on implementing AI basically on two fronts. One is in terms of improving the process operations, and the second one is with respect to the reliability of the rotating and the static equipment,” he said.