MRPL, links with Shell t to market aviation fuel

Mangalore: Mangalore Refinery and Petrochemicals Ltd (MRPL) and Shell Aviation on Monday announced an agreement to enter into a joint venture to market and supply aviation fuel, initially at two Indian airports — Bangalore and Hyderabad.

When asked about the other airports, Mr R. Rajamani, Managing Director of MRPL, told Business Line, “It could be Mumbai, it could be Chennai, and in all other airports wherever we are able to supply our fuel, we can do that. The logistics we have to see and we have to plan. That is all.”

To a query when the joint venture will come into force, he said: “It is likely to be effective, hopefully from March. The procedure will take a couple of months.”

Rapidly growing

The initial investment in the project will be to the tune of Rs 30 crore. This will be a 50:50 joint venture, he said.

Mr Rajamani said that the Indian aviation sector is growing rapidly. MRPL produces international quality aviation fuel, which can meet the rising demand. The joint venture will offer the best quality standards and technical service to domestic and international airlines, he pointed out.

The companies will provide complimentary services and strengths to the joint venture. While MRPL will bring its expertise and supply of high quality products, Shell Aviation will bring its global brand, network and customer base, in addition to stringent quality control procedures. Together, the companies will offer a compelling co-branded global refuelling offer to both the Indian and international airlines.

Major initiative

Quoting Mr R.S. Sharma, Chairman of MRPL and CMD of Oil and Natural Gas Corporation, the release said the joint venture agreement is a major initiative by both companies to cater to the growing Indian aviation sector that will catalyse the marketing activities of MRPL.

Mr L.K. Gupta, Director (Finance) of MRPL, said that this joint venture will put MRPL on international level by supplying aviation fuel to foreign airlines in India on one hand and on the other, by contracting fuel supply for Indian carriers when they fly abroad.

Quoting Mr Sjoerd Post, Vice-President of Shell Aviation, the release said: “India is an important growth market for Shell Aviation and the industry as a whole. This agreement extends our global network offering and will benefit both Indian and our global customers.”