Shell Aviation and Mangalore Refinery and Petrochemicals Ltd (MRPL) will form a 50:50 joint venture for supplying aviation turbine fuel (ATF) at airports in India.
New firm to supply ATF at Hyderabad and Bangalore airports
NEW DELHI: Shell Aviation and Mangalore Refinery and Petrochemicals Ltd (MRPL) will form a 50:50 joint venture for supplying aviation turbine fuel (ATF) at airports in India.
Initially, the partnership will be exclusively for Bangalore and Hyderabad airports.
But with more airports allowing open access to ATF suppliers in the future, the joint venture would serve other airports as well.
With MRPL parent Oil and Natural Gas Corporation (ONGC) approving the formation of the venture at its board meeting on Monday, the two partners would now apply to the Registrar of Company.
R Rajamani, managing director, MRPL, said: “We are in discussions with the Bangalore airport authorities and the exact sales volumes would be known only later.”
The joint venture would start selling ATF at Bangalore airport by March, he added.
He said MRPL will benefit from Shell’s tie-up with those foreign airlines landing in India.
“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,” said a company statement.
According to Rajamani, MRPL’s ATF production could meet the rapidly growing demand from the country’s aviation sector.
MRPL produces 1.2 million tonne annually from its 12 mt refinery in Mangalore.
It exports about 700,000 tonne ATF annually through spot purchases in the Singapore market and also under a supply agreement with Mauritius. Another 200,000-250,000 tonnes is sold at domestic airports to foreign and domestic airlines.
jyoti_m@dnaindia.net
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