India's state-run petrochemicals company, Mangalore Refinery & Petrochemicals Limited (MRPL) has informed that ONGC board in its meeting held on 23rd July 2009 has approved the investment proposal of MRPL for installation of a Polypropylene unit integrated with the MRPL Phase-3 complex facilities, which is under implementation, with an estimated Capex of Rs 1803.78 crore.

The project envisages value addition through conversion of Polymer grade propylene produced from the Petrochemical Fluidised Catalytic Cracking Unit (PFCCU) being implemented under the Phase-3 Refinery Project to Polypropylene.

The completion of Basic Design Engineering package and execution of the project is targeted in 30 months.

Market experts believe that the Polypropylene produced from MRPL complex would help in bridging the gap between supply and demand in the Southern region of India.

Despite the positive announcement, the shares of the MRPL closed today in red territory at Rs 82, down 3% compared to its previous close.