The Oil and Natural Gas Corporation on Friday said the Mangalore Refineries and Petrochemicals Ltd would make profits during the current fiscal if the Karnataka government considered its request of correcting anomalies in duties and taxes.
"If we get what we asked for (from Karnataka)... you will see the company turn around this fiscal," ONGC chairman and managing director Subir Raha told reporters in Bangalore.
ONGC has acquired majority stake in MRPL and plans to buy out 16.99 per cent stake in the refining company held by Hindustan Petroleum Corporation Ltd, for which it is awaiting the government's approval, he said.
Raha, who is also chairman of MRPL, said he had informed chief minister S M Krishna about the issues and had received positive signals from the government.
According to ONGC officials, about Rs 200 crore (Rs 2 billion) is the annual outgo in taxes and duties for MRPL in the state.
He said ONGC was investing in upgradation of MRPL units, besides lending the ailing refinery Rs 2,600 crore (Rs 26 billion) as loan at six per cent interest, and helping it to pay off high cost debts.
Raha said MRPL was making operational profit with 100 per cent throughput performance.
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