Report No.33 of 2017 - Performance audit Union Government Planning and Implementation of Phase III Expansion Project of Mangalore Refinery and Petrochemicals Limited Reports of Petroleum and Natural Gas

Overview

Audit Report No. 33 of 2017 is on the Performance Audit Report on Planning and Implementation of Phase III Expansion Project of Mangalore Refinery and Petrochemicals Limited.

Mangalore Refinery and Petrochemicals Limited, in the year 2006, decided to undertake refinery up gradation project at an estimated cost of ` 7,943 crore. 
The objective of the Project was to increase the refinery capacity from 11.82 MMTPA to 15 MMTPA and to enhance the production of value added products.  The estimates of cost underwent changes from time to time due to change in capacity, addition and deletion of various units.   As of October 2015, the total adjusted estimated cost of the Project worked out to ` 16,323 crore.  Against this, the Company had incurred an expenditure of `14,832 crore by March 2016.  The project, which was initially proposed to be completed in June 2010, was actually completed in June 2015.

The planning, execution and commissioning of units under the project and its impact on refinery operations during the period 2011-16, were reviewed during the course of Performance Audit.

The Performance Audit was conducted with a view to examine the economy, efficiency and effectiveness in execution of the Project and to review the refinery operations so as to ensure that the same were carried out economically and efficiently

Audit covered the planning and execution of Capital Projects including Phase III expansion, setting up of Single Point Mooring, synchronisation and operational performance of the processing units, auxiliary units and utilities for the period
2011-12 to 2015-16.  Compliance with relevant statutory regulations relating to environmental issues was also covered.

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