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HEADLINE: Financial appraisal report on OMPL aromatics complex project CONTENT: Draft financial appraisal report b !

"I Caps on aromatics complex project in Man#alore !E$ xxxxxxxxxxxxxxxxxxxxxxxxxx % E&EC'TI(E !'MMA)* %+% Intro,-ction ONGC-Mangalore Petrochemicals Ltd (OMPL) is a company promoted by Oil and Natural Gas Corporation Limited (ONGC) and Mangalore Refineries Petrochemicals Limited (MRPL) for setting up an aromatics comple! at Mangalore in Mangalore "#pecial $conomic %one (M#$%)& OMPL 'ill be a pri(ate sector company 'ith ONGC and MRPL holding )*+ of the e,uity capital of the company 'hile the balance -.+ e,uity 'ill be offered to #trategic/ financial in(estors and retail in(estors& OMPL 'as incorporated on .*th 0ecember 1223 and its registered office is at 4/1)5 Cunningham Road5 6angalore5 7ndia& 8uthori9ed share capital of the Company is Rs 1222 crore (around :#0 -22 million)& OMPL is setting up ban aromatics comple! in M#$% ad;acent to the e!isting refinery of MRPL& <he plant 'ill produce *.=5422 M< per annum of para->ylene and about 1?=5.22 M< per annum of 6en9ene& <his comple! 'ill get its feedstoc@5 mainly naphtha and aromatic streams from the MRPL refinery& OMPL 'ill enter into a feedstoc@ sourcing arrangement 'ith MRPL for continuous supply of naphtha and other streams& <he pro;ect is e!pected to start commercial operation by 12.1& ))1 acres of land for the comple! has already been ac,uired on long term lease basis from M#$% and site de(elopment 'or@ has already started& %+. Promoters %+.+% Oil / Nat-ral 0as Corporation 1ON0C2 ONGC is the largest oil e!ploration company in 7ndia and is the largest ANa(ratnaA P#: & ONGC is the only fullyBintegrated petroleum company in 7ndia5 operating along the entire hydrocarbon (alue chain holding largest share of hydrocarbon acreages in 7ndia& ONGC has established 3 billion tonnes of 7n-place hydrocarbon reser(es 'ith more than =22 disco(eries of oil and gas5 3 out of the 4 producing basins in the country ha(e been disco(ered by ONGC& 7t has cumulati(ely produced 431&= Million Metric <onnes (MM<) of crude and ))2&4 6illion Cubic Meters (6CM) of Natural Gas5 from ..- fields& <he company has 1)2 onshore5 .)4 -offshore platforms 'ith .-?22 Cm onshore pipeline net'or@ and )-22 Cm offshore pipeline net'or@s& ONGC is a Dortune 122 company and Platt has ran@ed ONGC as the top Oil Gas $!ploration Production ($ P) Company in 8sia for 1224& ONGC has been gi(en highest credit rating by domestic rating agencies li@e Crisil 7CR85 and so(ereign rating by Moody& Table %3 !4are4ol,in# Pattern of ON0C !4are4ol,ers Public/Others Total !4are4ol,in#152 1-&?3+ %66+665

Go(ernment of 7ndia 4)&.)+

ONGC is a listed entity and is the second largest 7ndian corporate by mar@et cap& <he company earned a profit of Rs&.34 6illion in 1224-2?

%+.+. Man#alore )efiner / Petroc4emicals Lt,+ 1M)PL2 MRPL 'as promoted in .*?? by 8E 6irla group along 'ith FPCL& ONGC too@ o(er the sta@e of 8E 6irla group in March 122=5 ma@ing it a subsidiary of ONGC& MRPL has been a'arded the AMiniratna Category-7A status& <he present sta@e of ONGC in MRPL as on =./=/2? 'as 4.&31 +& MRPL is a standalone refining company5 'ith sole refinery at Mangalore in the state of Carnata@a& Present nameplate capacity is *&3* MM<P8G ho'e(er it is consistently operating abo(e .1 MM<P8 for the past four years& MRPL is currently carrying out e!pansion/ upgradation pro;ect to e!pand the refining capacity to .- MM<P8 and become capable of producing $uro 7E compliant fuels& MRPL has been a'arded highest credit rating by domestic credit rating agencies 7CR8 and CR7#7L& !4are4ol,ers !4are4ol,in# 152 ONGC FPCL Public Total 4.&31+ .3&*-+ Others ..&)=+ %66+665

Cey financial parameters of the company are gi(en in the follo'ing tableH %+7 !-pport pro8i,e, b t4e promoter ONGC/MRPL as Promoters 'ill pro(ide the follo'ing supports for the comfort of the lendersH (i) )*+ $,uity #ubscription B ONGC/MRPL 'ill subscribe up to )*+ of the pro;ect e,uity (including already incurred e!penditure of Rs 132 crore already brought in as share application money till =.-" March 122*)& $ntire promoter e,uity 'ill be brought upfront before any dra' do'n of the loan& (ii) <ie-up of balance $,uity capital B ONGC/MRPL 'ill pro(ide an underta@ing to arrange the balance -. +-e,uity capital5 either through strategic /financial in(estors/offta@ers/7PO& (iii) Non-disposal of $,uity - ONGC/MRPL 'ould pro(ide an underta@ing to maintain at least )*+ e,uity in the pro;ect at any time during the currency of the loan& (i() Completion support - ONGC/MRPL 'ould pro(ide an underta@ing to arrange funds to meet any cost o(errun& (() Deedstoc@ #upply and #tream e!change agreementH MRPL 'ill enter into a feedstoc@ supply and stream e!change agreement 'ith the Company for assured supply of the feedstoc@ and e(acuation of certain surplus streams& 6esides the direct support mentioned abo(e5 ONGC/MRPL 'ill also pro(ide support in the construction and Operation Maintenance of the pro;ect& %+9 "oar, of Directors of t4e Compan <he Management of the company consists of nominees from ONGC and MRPL&

Table 73"oar, of Directors of OMPL !+No+ Name of ,irector . 1 = ) R&#& #harma5 Chairman :&C& 6asu5 M05 MRPL M&M& Chitale 7&#&N Prasad Desi#nation M05 ONGC Chairman 0irector 0irector 0irector

%+: Project ONGC Mangalore Petrochemicals Limited (OMPL) is setting up an aromatics comple! to produce *.=5422 <P8 para!ylene and 1?=5.22 <P8 6en9ene5 from the naphtha supplied by MRPL refinery& <he pro;ect also includes a capti(e po'er plant and other necessary utilities and infrastructure re,uired for the pro;ect& %+:+% Location of Project <he pro;ect is being located inside a #pecial $conomic %one (#$%) being de(eloped by Mangalore #$% Ltd& <he pro;ect site is ad;acent to MRPL refinery from 'here entire feedstoc@ 'ill be -supplied to the aromatics comple! through pipelines& <he site is also 'ell connected to national and state high'ays& 7t is .1 @rns a'ay from the Ne' Mangalore Port and about .- @ms from Mangalore 7nternational 8irport& %+:+. Man#alore !E$ Mangalore #pecial $conomic %one (M#$%) is being de(eloped by 7L D# along 'ith ONGC and C7806& Mangalore #$% Ltd& has already got the appro(al for setting up this #$%& M#$% 'ill be spread across .3=2 acres and it 'ill be de(eloped as sector specific #$%& Fo'e(er5 M#$% is in tal@s 'ith Ne' Magalore Port <rust (NMP<) to induct it as one of the e,uity partners to be able to get the status of port based multi product #$%& M#$% is the de(eloper 'hile OMPL pro;ect 'ill act as the anchor tenant for this #$%& ))1 acres of land has been allocated by M#$% to OMPL for the aromatics comple!& M#$% 'ill pro(ide land to OMPL on long tenn lease basis& #$% 'ill pro(ide basic amenities li@e 'ater5 bac@-up po'er5 effluent treatment and disposal5 etc& to all the units coming in its premises& Iater 'ill be brought from Netra(ati and Gun-upur Ri(er through a pipeline& Iater supply facility may be de(eloped by an independent agency on 6OO< basis& $lectricity connection 'ill be ta@en from the state electricity grid& 8 dedicated corridor 'ill be de(eloped bet'een #$% and the port for uninterrupted mo(ement of material and manpo'er& <he pipelines for the aromatics comple! 'ill come on the rac@ pro(ided in this corridor& Fence5 the company 'ill not be re,uired to ac,uire any Ro:/RoI for setting up pipelines& M#$% is also de(eloping residential and commercial facilities for the use of employees other than those of units in M#$%& #$% has already ac,uired .3=2 acre land and Rehabilitation Resettlement (R R) is in progress& <he 'or@ on utilities to be pro(ided by M#$% to OMPL is in progress and 'ill be ready by the time OMPL"s petrochemicals pro;ect 'ill be ready& %+:+7 Process <he pro;ect 'ill get feedstoc@ supply from e!isting refinery of MRPL& <he process technology for the aromatics plant has been finali9ed and :OP5 :#8 has been selected as process licensor to

pro(ide the process technology& Para!ylene 'ill be produced through adsorption technology of :OP 'hich is a pro(en technology being used all o(er the 'orld& %+:+9 Confi#-ration <he configuration of the aromatics comple! is as gi(en in the follo'ing tableH Table 9: Process 'nits of Aromatics Complex #&No& . 1 = ) 3 4 ?

'nit Description
Naphtha Fydro <reater (NF<) Continuous Catalytic Reformer (CCR) B Platforming unit >ylene Dractionation :nit (>D:) P> Reco(ery :nit (P8R$>) >ylene 7someri9ation :nit 7#OM8R 6en9ene <oluene $!traction :nit ($0 #ulfolane) 6en9ene <oluene Dractionation (6<D) <rans 8l@ylation 0is io ortionation :nit (<8<OR8J)

Capacit 1MMTPA2 2&*)* 2&*)* )&&3=3 )&24= =&.31 2&4*2 1&.*? .&4.1

<he processing units 'ill ha(e enough fle!ibility to handle (ariations in the ,uantity and specifications of feedstoc@ mi!& %+:+: Material "alance <he material balance of the aromatics plant is gi(en as follo'sH Table :: Material "alance of Plant !+ Material No+ Deedstoc@ . DCC naphtha 1 Co@er naphtha = #t Run naphtha ) Fea(y naphtha side dra' 84 - rich stream 3 8? - mi!ed !ylene 4 8* - rich stream Total Pro,-cts . Para!ylene 1 6en9ene = Paraffin Rich Raffinate ) Duel gas LPG 3 Fea(y8romatics 4 Fydrogen ;-antit 1TMTPA2 .1.&2 .?.&2 -.=&= .1=&4 1=.&2 1)4&2 .1-&2 %:9.+6 *.=&4 1?=&. .12&? .4=&? 12&2 - ..&1 .*&) 5 of Total 4&?-+ ..&4)+ ==&1*+ ?&21+ .)&*?+ .3&21+ ?&..+ %66+665 -*&1-+ .?&=3+ 4&?=+ ..&14+ .&=2+ 2&4=+ .&13+

Total %+:+< Fee,stoc= !-ppl

%:9.+6

%66+665

MRPL 'ill supply all the feedstoc@ re,uired for this aromatics comple! from its refinery& DCC Naphtha 'ill be ta@en from the DCC unit of the refinery& <his naphtha stream is rich in aromatics& Co@er Naphtha 'ill be ta@en from the do'nstream of 0elayed Co@er :nit (0C:)& DCC and 0C: are being set up in the e!isting refinery of MRPL as part of the e!pansion program& Capacity of MRPL refinery is being increased from *&3* MM<P8 to .- MM<P8& 8fter this e!pansion5 MRPL refinery 'ill ha(e three C0:"s& #traight Run Naphtha 'ill be ta@en from all the three C0:"s& Fea(y Naphtha 'ill be ta@en from the side dra' of 1nd C0:& 8romatic streams 'ill be ta@en from the Mi!ed >ylene :nit (M>:) of the refinery& OMPL 'ill enter into a Afeedstoc@ supply agreementA and Astream e!change agreementA 'ith MRPL& %+:+> Pro,-cts Para!ylene is the main product of this aromatics comple!& Para!ylene is primarily used to produce Purified&<erephthalic 8cid (P<8) 'hich is used to produce polyester and P$< chips& Para!ylene 'ill be sold to P<8 manufacturers or traders in the free mar@et& OMPL is in dialogue 'ith (arious prospecti(e offta@ers for setting up a dedicated P<8 manufacturing plant near the aromatics comple!& #uch a dedicated do'nstream facility 'ill assure off-ta@e of para!ylene from this plant& Pipeline 'ill also be set up from the aromatics comple! to the Ne' Mangalore Port for e!port of remaining para!ylene to other locations& <he plant 'ill also produce 6en9ene 'hich is used in manufacturing of products li@e phenol5 cumene5 styrene5 etc& 6en9ene is the building bloc@ for the nylon chain& 8 dedicated pipeline 'ill be set up from the aromatics comple! to the port for e!port of ben9ene to other locations& OMPL may also enter into off ta@e agreement for 6en9ene 'ith parties 'ho propose to set up a ben9ene do'nstream plant in nearby areas& <he company proposes to tie up long term offta@e of the products 'ith credible parties& <he company had in(ited $!pression of 7nterest ($o7) from potential offta@ers for Para!ylene and 6en9ene& <he company recei(ed (ery good response for Para!ylene and 6en9ene off ta@e from more than .- parties 'ith strong credentials and global footprints& 6P5 Mitsui5 Mitsubishi5 MCC P<85 Marubeni5& 7tochu5 Colmar 7nternational5 Einmar 7nternational and domestic polyester players li@e 7ndorama5 K6D etc& ha(e sho'n interest in entering into long term off ta@e agreements& <he company 'ill be selecting the off ta@ers on basis of competiti(e bidding& <he company has engaged the ser(ices of #67C8P# for assisting in the off ta@ers selection& 6ased on the strong response5 the company decided to prioritise the off ta@ers based on readiness of setting up plants using P>/6en9ene as feedstoc@ in M#$%/ nearby& <his approach 'ould gi(e ma!imum benefit of synergy and also ensure commitment (in terms of in(estment in ne' plant) by the off ta@er for using the P>/6en9ene produced by OMPL& 8part from ben9ene and para!ylene5 the aromatics comple! 'ill also& produce paraffin rich raffinate5 LPG and hydrogen& Paraffin rich raffmate is rich in C-/C3 and it 'ill be used by MRPL refinery for further processing& <he aromatics plant 'ill produce mar@etable LPG 'hich 'ill be transferred to MRPL for sale in the mar@et& Fydrogen produced from this plant 'ill also be absorbed by MRPL for its processes& Duel gas and hea(y aromatics produced from the aromatics comple! 'ill be utili9ed as internal fuel in the process heaters& %+:+? Lo#istics

0edicated pipelines 'ill be set up from aromatic comple! to NMP< port for e(acuation of para!ylene and ben9eneG and for e(acuation up to do'nstream P<8 and 6en9ene plants& 8 pipeline 'ill also be laid for supply of feedstoc@ and e(acuation of products li@e raffinate and hydrogen from MRPL& M#$% or a #PE company promoted by M#$% 'ill de(elop a dedicated corridor 'ith pipeline rac@ from M#$% to the port facilities& 8ll the pipelines 'ill be laid on this rac@& Ne' Mangalore Port <rust (NMP<) is de(eloping a ne' ;etty at the Ne' Mangalore port 8fter the de(elopment of this ne' ;etty5 there 'ill be enough capacity a(ailable at NMP< for handling products of OMPL& 8dditionally5 MRPL 'ill not be e!porting around 7 MM<P8 of naphtha from this port after the commissioning of aromatics comple! and also around 1 MM<P8 of fuel oil after the residual upgradation pro;ect scheduled for completion simultaneously& <his 'ill also create spare capacity at the port& %+:+@ Capti8e PoAer Plant <he pro;ect includes setting up of a capti(e po'er plant to supply po'er and steam for the process units& <he a(erage po'er re,uirement of the process units 'ill be -. MI 'hile the a(erage steam re,uirement for the process units 'ill be .34&-2 <PF& CPP 'ill be a combined cycle cogeneration plant to produce po'er as 'ell as steam& <he capti(e po'er plant 'ill consist of t'o gas turbines (G<G)5 t'o heat reco(ery steam generators (FR#G)5 one steam turbine (#<G) and t'o utility boilers 'ith follo'ing capacitiesH Table <: Capacit of Capti8e PoAer Plant !+ No . 1 = )

'nit Description
Gas <urbine and Generator #team <urbine Generator Feat Reco(ery #team Generator :tility 6oiler

Nos
1 . 1 1

Capacit )1 MI =2 MI 1)2 <PF 1)2 <PF

G<G 'ill ha(e dual fuel capacity i&e& gas/diesel5 'ith gas as the primary fuel& <he e!haust gases from G<G 'ill be routed to the FR#G for heat reco(ery& <he FR#G 'ill ha(e supplementary fuel firing pro(ision and burners 'ill be suitable for firing fuel oil& <he utility boilers 'ill be dual fired 'ith capability to use Lo' #ulphur Fea(y #toc@ (L#F#) and Natural gas& Gas 'ill be sourced from the proposed pipeline of G87L/ Reliance& %+:+%6 'tilities for Aromatics Complex 6esides Capti(e Po'er Plant5 the 8romatic Comple! 'ill ha(e separate facilities to cater to utility re,uirements of the process units on a standalone basis& 0escription of (arious utility systems planned for the 8romatics Comple! is gi(en in the follo'ing sectionsH %+:+%6+% )aA Bater ! stem Ra' 'ater re,uirement of the comple! 'ill be about ?22 m=/hr& <here 'ill be a ra' 'ater reser(oir of a capacity of 325222 cubic meters to meet .- days fresh 'ater re,uirement& DemineraliCe, 1DM2 Bater ! stem

0M 'ater plant of ..2 m=/hr capacity and t'o 0M 'ater tan@s of capacity of =5222 m= each 'ill be setup to meet the 0M 'ater re,uirement& Coolin# Bater 1CB2 ! stem <he cooling 'ater system en(isaged for the aromatics comple! is closed loop recirculation type& <he cooling to'er 'ill cater to re,uirements of capti(e po'er plant as 'ell as the process and utility bloc@& Compresse, Air ! stem Compressed air in the plant 'ill be re,uired for instrument air5 plant air and ser(ice air& Centrifugal compressors 'ill be pro(ided for supply of compressed air& 8ir dryers 'ill be pro(ided for instrument air system& Nitro#en ! stem <he pro;ect 'ill ha(e Nitrogen Plant to meet the Nitrogen re,uirement for initial purging5 dry out catalyst regeneration5 blan@eting and flare header purging& <here 'ill also be a pro(ision for producing li,uid Nitrogen and li,uid Nitrogen storage& %+:+%% Offsite facilities <he offsite facilities en(isage ade,uate storage and transfer facilities for the (arious feed and product streams commensurate 'ith the capacities of the process units& #torage and pumping capacities for feedstoc@ and finished product shall be based on the material balance of the configuration of the aromatics comple!& Offsite facilities are di(ided into fi(e sections - Deedstoc@5 Product5 6y-product5 :tility and Miscellaneous& %+< Project Implementation OMPL proposes to implement the Pro;ect 'ith the assistance of a Pro;ect Management Consultant (PMC) through hybrid approach i&e& Process units and CPP under lump sum turn@ey (L#<C) and rest of the utilities under $PCM e!ecution mode& <he PMC 'ould be primarily responsible for detailed engineering5 sourcing of e,uipment and monitoring of the construction& M/s <oyo $ngineering has been appointed as Pro;ect management Consultant (PMC) and $PCM for the units proposed to be implemented on con(entional basis& <oyo has rich e!perience of implementing petrochemical plants& M/s :OP has been selected as the licensor for the process units& <he 6asic $ngineering 0esign Pac@age (6$0P) 'ill be pro(ided by :OP& 6ased upon this basic engineering5 L#<C orders for (arious process units 'ill be gi(en& OMPL along 'ith PMC is placing orders for long lead items 'hich 'ill be pro(ided to L#<C contractors by the company& <his 'ill sa(e the procurement time for the long lead items li@e reactors5 columns5 centrifugal compressors5 'elded type heat e!changers5 etc& ONGC/MRPL has formed a core team of e!perienced e!ecuti(es 'ho ha(e been deputed to OMPL to manage the pro;ect implementation& <he team comprises of professionally ,ualified personnel at (arious le(els belonging to different disciplines li@e Process5 Mechanical5 $lectrical5 Ci(il5 7nstrumentation5 Materials5 Pipeline5 Dinance etc&5 besides Corporate #ecretarial and other non-official staff members& %+<+% Implementation !c4e,-le

Mechanical completion for the pro;ect is e!pected in No(ember 12.. and the unit 'ill be ready for trial run by March 12.1& Commercial operation 0ate (CO0) of the aromatic comple! is e!pected to be .-. 8pril 12.1& :OP has already been selected as process licensor and 6asic $ngineering and 0esign pac@age for all units has already been recei(ed& Construction of pro;ect is e!pected to ta@e 13 months from the a'ard of L#<C Contracts for the ma;or process units& #hort listing of the parties for L#<C is in progress and a'ard of L#<C 'ill ta@e )-- months after receipt of 6asic $ngineering 0esign Pac@age (60$P) for all units& 7mplementation schedule for the pro;ect is gi(en as follo'sH Table >: Implementation sc4e,-le of t4e project ! No: . 1 = ) 3 4 Acti8i 8ppointment of PMC/#election of licensor Order of long lead items 8'ard of L#<C Contracts #ite grading 0eli(ery of long lead items Mechanical completion Commissioning Timeline Completed 0ecember5 122* No(ember5 122* 0ecember5 122* #eptember5 12.. No(ember5 12.. March 12.1

%+> Cost of Project Core cost of the pro;ect has been estimated by <oyo $ngineering based upon the budgetary ,uotes and in-house data 'ith them for similar pro;ects& <he brea@-up of the core cost of the pro;ect is gi(en as follo'sH Table ?: Core Cost of Project !l+No+ . 1 = ) 3 4 ? * .2 .. Projects Cost 1)s+ crore2 Land #ite 0e(elopment Royalty5 Cno'ho' 6asic $n & PMC Others Plant Machinery 7#6L Plant Machinery (O#6L) Po'er Plant $PCM portion cost #ite $nabling Dacilities Pre-operati(e $!penses #tart-up Commissioning $!penses IC )-2&=2 .31&22 .5?-4&33 13=&22 -1-&22 341&?3 =1&*1 3-&22 .2&22 FC 1in '!D Mn2 Total )-2&=2 L 1=&3* ..)&-. .31&22 L .44&4? 154.4&213=&22 -1-&22 L =&4= 3*2&*2 =1&*1 L 3&1= *-&.= .2&22 E .%%+97 ??&11 9D@>.+:@

0educt H Carnata@a E8</IC< e!emption ??&11 Total Core Cost 7D@:6+:.

M 0eduction is on account of CE8<5 IC< and $ntry <a! e!emptions #ince the pro;ect is being set up in #pecial $conomic %one (#$%)5 there 'ill not be any custom or e!cise duty payable on the capital goods& #tate go(ernment ta!es li@e CE8<5 $ntry ta! and Ior@

Contract <a! (IC<) ha(e also been deducted from the pro;ect cost as the guidelines for the same is pending 'ith the go(ernment& 6ased on the estimates of core cost by <oyo5 <otal as 6uilt pro;ect cost has been arri(ed at by #67C8P# by adding contingency and inflation for the construction period5 7nterest during construction (70C)5 other financing charges and Margin Money for 'or@ing capital to the core cost estimates of <oyo& Table @: As3"-ilt Cost of Project Digures in Rs crore )*41&-* =2=&.1 -14-&4. -)&22 =1.&42 **&=2 :>:6+>%

Core cost of project Contingency 7nflation ad;ustment 8d;usted Cost incl& 7nflation contin#enc Contribution in #$% Corridor cost &7nterest -0uring Construction (70C) Financin# Charges Mar in Money Total Cost %+? Means Of Finance

<he pro;ect cost of Rs -4-2&4. crore 'ill be funded 'ith a debt e,uity ratio of 3-H=-& <otal debt re,uired for the pro;ect is Rs =4=4&*3 crore& <he follo'ing table gi(es the financing plan for the pro;ectH Table %6: Means of Finance Pro;ect Cost 0ebt EF-it Ratio EF-it 0ebt %+?+% EF-it Rs 12.1&4- crore 'ill be brought in the form of e,uity in the pro;ect& <he promoters 'ill bring )*+ of this e,uity upfront 'hile the balance e,uity 'ill be raised from strategic/financial in(estors or 7PO& %+?+. Debt Rs =4=4&*3 crore 'ill be brought in the form of debt in the pro;ect& $ntire debt tie-up 'ill be initially in the form of Rupee term loan& #ince some part of the cape! is in foreign currency5 the company 'ill ha(e option to reduce/refinance Rupee term loan to the e!tent of =2+ by foreign currency borro'ing from $C8/$C6& <otal door to door tenor of the loans 'ould be .= years 'hich includes 1+1 years for construction5 ."/1 year for moratorium period and repayment period of * years& <he year-'ise schedule of capital e!penditure along 'ith debt and e,uity infusion is gi(en in the follo'ing tableH -4-2&4. 3-H=12.1&4=4=4&*3

Table %%: *earl Canex p4asin# an, DebtGEF-it ,raA,oAn *ear Percentage Cape! $,uity 7nfusion 0ebt 7nfusion %+@ Mar=et <he aromatic comple! 'ill produce about *.=&4 C<P8 Para !ylene and 1?=&. C<P8 6en9ene& OMPL proposes to enter into long term off ta@e agreements for P> and 6en9nee 'ith parties 'ith strong credentials& OMPL has in(ited $!pression of 7nterest ($O7) for long tern offta@e agreements for P> and 6en9ene and has recei(ed (ery strong response from (arious interested buyers li@e 6P5 7tochu5 Mitsui5 Mitsubishi5 Marubeni5 Colmar5 K6D5 7ndorama etc& <he company is in ad(anced stages of finali9ing the offta@er for long-term offta@e agreement for Para!ylene/6%& <he pricing of P> and 6en9ene 'ill be lin@ed to international 6ench mar@ prices& <he company proposes to gi(e preference for offla@e to those bidders 'ho 'ill be setting up P<8 plant in M#$% or nearby areas5 assuring dedicated off ta@e& %+@+% Parax lene / "enCene: "ac=#ro-n, Para!ylene is the most important 8romatic basic petrochemical& <he demand gro'th for para!ylene is dri(en by demand gro'th of polyester fibre5 P$< bottle resin and polyester film& Para !ylene is either con(erted into Purified <erephthalic 8cid (P<8) or 0imethyl <erephthalate (0M<)5 both of 'hich are intermediates in the polyester chain& 8round *=+ of para!ylene demand globally is into P<8& 6en9ene is an important aromatic chemical and is used as a ra' material in se(eral important products such as Caprolactam 'hich is used to ma@e nylon filament yarn (NDJ)5 Linear al@yl ben9ene (L86) 'hich is used in detergents5 #tyrene used in polystyrene #tyrene 6utadiene Rubber5 Nitroben9ene chloroben9enes 'hich are used as dye intermediates5 and 6FC Lindane 'hich are used in pesticides& 0lobal Parax lene scenario Iorld'ide para!ylene demand is currently 13 million tonnes and is forecast to gro' at more than - + per year to reach around 3) million tomes by 121-& <his gro'th is being dri(en by high gro'th rates in polyester fibre and P$< bottle resin& <he Para!ylene industry is a cyclical industry5 hence the capacity additions happen in cycles& <he 'orld consumption of P> is e!pected to gro' at a higher rate of 4+/year in the 122?-12.= period5 'ith 8sia leading gro'th at a rate of ?&-+/year (Mainly due to China 7ndia)& Fistorically5 in de(eloping economies5 gro'th of demand for Polyester and thus P> is higher than G0P gro'th rate due to reali9ation of latent demand and greater economic inclusion& <o fulfill the large demand5 capacity e!pansions are being planned in China5 Middle $ast and 7ndia& Fo'e(er5 despite the large capacity additions5 N$ 8sia5 particularly china is e!pected to remain a ma;or importer& 7n the long run5 N$ 8sia5 North 8merica5 8frica5 Russia 'ill be net importers 'hile Middle $ast and #$ 8sia 'ill be net e!porters& In,ian Parax lene scenario 7%st Mar36@ 7%stH Mar-.2 7%st Mar3%% )&-1+ 132&.? 132&.? -4&*3+ )-4&?1 )-4&?1 -14&?=+ .322&11 13?&1.==.&*4 7%!t Mar-.1 <otal -*&3*+ =)=1&)* .213&-2 1)2-&** .22 + -4-2&4. 1213&)1 =4=4&*3

P> mar@et in 7ndia has mo(ed from Net importer in mid nineties to net e!porter in 1222 after R7L commissioned its Kamnagar plant& <otal P> capacity in the country is about 1&1 MM<P85 'hile demand in 1224 'as around .&3 million tonnes and is e!pected to @eep on gro'ing in line 'ith G0P gro'th& Iith the OMPL pro;ect and ne' capacities plans by R7L5 total P> capacities are e!pected to reach )&- MM<P8 by 12.1& 0emand for P> is e!pected to gro' substantially dri(en by higher G0P gro'th and greater per capita spending capacity& Polyester is e!pected to fulfill the additional demand as the supply of the other ma;or source of fibre i&e& cotton cannot rise at the same rate and has supply constraints& Iith planned capacities5 7ndia 'ill remain a net e!porter in near future and 'ill fill the deficit in N$ 8sia region& 0lobal "enCene scenario <he global demand for ben9ene is currently around )2 million tonnes5 'ith ethyl 6en9ene ( used for manufacture of styrene) sharing -2 + of mar@et& #tyrene is used to manufacture polystyrene and other styrenic products such as 86# and #6 late!& Cumene 5 cyclohe!ane and Nitroben9ene applications for are the other ma;or end-uses of ben9ene& Global demand for ben9ene is e!pected to gro' around 1&--= + p&a& reaching around 32 Million <onnes by 121-& Globally5 the industry trend for 6en9ene demand gro'th is correlated to G0P gro'th& <he additional re,uirement for 6en9ene is e!pected to be met mostly through ne' capacities being setup in 8sia& <he gro'th in global trade in 6en9ene is e!pected to be more than gro'th in 6en9ene demand as a supply deficit is e!pected to gro' in :# and $urope5 'ith deficit being fulfilled by 8sian capacities& Iestern $urope and N& 8merica 'ill continue to remain net importers of 6en9ene5 'ith N$ 8sia turning net importer by 12.2-.15 'hile #$ 8sia5 7ndia5 Middle $ast 'ill be net e!porters& In,ian "enCene scenario 0emand for ben9ene in the 7ndia is estimated at around 4225222 tonnes5 representing almost 1+ of the global mar@et& <he ben9ene mar@et"s largest end-use sector currently is Linear 8l@yl 6en9ene (L86) 'hich is used for surfactants and detergents5 representing around =2+ of domestic demand& Caprolactam and Phenol account for around 1. + and .4+ of the demand& <he remaining demand is made from other deri(ati(es li@e 8niline5 6FC/Lindane5 Nitrochloroben9ene& 7ndia has presently no styrene facilities& 7ndia is currently a net e!porter of 6en9ene5 e!porting a significant portion of its 6en9ene production5 e!porting almost 1-2 to )22 C< of ben9ene& Fo'e(er5 going for'ard huge demand gro'th is e!pected due to the need of setting up of #tyrene plant in 7ndia to meet gro'ing styrene products demand& 6en9ene demand is e!pected to gro' at 3 + p&a& reaching o(er .&- MM<P8 by 121-& <he 7ndian 6en9ene demand is closely lin@ed'ith gro'th of 7ndian economy and global trade balances& %+%6 Mar=etin# !trate# <he company proposes to tie up long term offta@e of P> and 6en9ene and has in(ited $!pression of 7nterest from potential offta@ers for Para!ylene and 6en9ene& <he company has recei(ed strong response for Para!ylene and 6en9ene off ta@e 'ith more than .- parties 'ith strong credentials and financials and 'ith global footprints li@e 6P5 Mitsui5 Mitsubishi5 MCC P<85

Marubeni5 7taachu5 Colmar 7nternational5 Einmar 7nternationalG and domestic polyester players li@e 7ndorama5 K6D etc& ha(e sho'n interest in entering into long term off ta@e agreements& OMPL 'ill prefer the off ta@ers setting up plants using P>/6en9ene as feedstoc@ in M#$%/ nearby5 as this 'ould gi(e benefit of synergy and ensure commitment by the off ta@er for using the P>/6en9ene produced by OMPL5 'hile the rest of the product 'ill be e!ported& #ome of the offta@ers ha(e also e!pressed interest in participating in the e,uity sta@e of the company to ensure better for'ard integration in the (alue chain& Parax lene <hree-four parties ha(e e!pressed interest in setting up a dedicated P<8 unit in Mangalore to met their capti(e P<8 consumption for polyester/P$< facilities5 'hile one of the offta@er is interested in sourcing P> for its e!isting P<8 unito 'ants to source P> from OMPL for mar@eting o(erseas& OMPL plans to tie up about -2 + of P> capacity domestic consumption 'hile balance -2 + 'ill be @ept open for e!porters& 7ndian 0emand for Polyester/ P$< is e!pected to gro' significantly at a rate of ?-.2+ in ne!t --.2 years time resulting in huge demand for P>& 6ased on the current global scenario5 the ma;ority of Polyester demand is e!pected from N$ 8sia5 particularly China& Fence5 any surplus P> left after fulfilling 7ndian demand can be absorbed easily by the N$ 8sian mar@et& <he e!port of product by OMPL 'ould primarily be targeted to the mar@et 'hich 'ill gi(e the highest Net 6ac@& OMPL is strategically better placed in Geographic terms to the competitors li@e Middle $ast due to pro!imity to ma;or demand centers li@e 7ndia and N$ 8sia& "enCene Currently5 7ndian demand for 6en9ene is lo'er than the capacity5 and 6en9ene is e!ported in o(erseas mar@et& Going for'ard5 the 7ndian e!port of 6en9ene is e!pected to reduce due to gro'th in domestic demand& <he company is in ad(anced stages of tal@s 'ith off ta@ers for long term agreements for sale of 6en9ene in o(erseas mar@et& Most of the interested offta@ers are loo@ing to source 6en9ene from OMPL for mar@ting o(erseas 5 primarily mar@ets in 'estern $urope5 8merica5 8 fe' of the parties ha(e also e!pressed interest in setting up of Phenol and other 6en9ene deri(ati(e units in Mangalore / nearby areas& Presently5 the company en(isages .22 + e!port of ben9ena5 'ith most e!port being directed to fulfill the demand in $urope (e!port opportunity to $urope is due to shutdo'n of many $uropean 6en9ene producing capacities)& <his e!port opportunity is proposed to be tapped by entering into long term offta@e agreement 'ith traders ha(ing strong financials& and ha(ing international e!perience of mar@eting of petrochemicals/6en9ene& 6ased on the (ery strong response to the off ta@e process and demand in the 7ndia and N$ 8sia region5 the company may not face much difficulty in tying up the mar@eing of the entire P> and 6en9ene production& <he other intermediate products li@e LPG5 Fydrogen5 Raffinate5 etc& 'ill be sent bac@ to MRPL under stream e!change agreement& %+%% Present !tat-s of t4e project

<he Company has already ac,uired the entire land of ))1 acres re,uired for the pro;ect from Mangalore #$% on a long term lease basis and has a'arded the site de(elopment contract& <oyo $ngineering 7ndia Limited has been appointed as the Pro;ect Management Consultant (PMC) for the aromatics pro;ect& PMC has already started the preliminary 'or@ on site& <he progress of the pro;ect is as belo'H :OP has been selected for pro(iding process technology and the 6asic $ngineering 0esign Pac@age (6$0P)& Ma;or portion of 60$P pac@age from :OP has already been recei(ed& Long lead items ha(e been identified and some in,uiries ha(e been floated&

%+%%+% !tat-tor Clearances $n(ironment clearance has been recei(ed& Consent for $stablishment (CD$) has been recei(ed by M#$%& 8ppro(al from Ministry of Commerce recei(ed for setting up #$% unit for e!emption of ta!es/duties on inputs& #78 clearance for :OP technology has been obtained

%+%. Profitabilit projections <he Pro;ect is e!pected to commence commercial operation from 8pril 12.1& Capacity utili9ation is assumed at ?2+ and *2+ in the first and second year and .22+ thereafter& Deedstoc@ for the aromatics plant 'ill be supplied by MRPL refinery& -2+ of para!ylene is assumed to be sold in the do'nstream plant ad;acent to the aromatics comple! and balance -2 + Para!ylene and .22 + ben9ene is assumed to be sold in the e!port mar@et& LPG produced from the comple! 'ill be sold in the domestic mar@et& Other streams of the plant li@e raffinate and hydrogen 'ill be sent bac@ to refinery to be used in the process& OMPL 'ill enter into a ADeedstoc@ #upply and #tream $!change 8greementA 'ith MRPL for dedicated supply of feedstoc@ and off ta@e of products li@e Raffinate and Fydrogen& <he pricing of feedstoc@ are based upon three year a(erage price& Prices of #traight Run Naphtha 'ill be benchmar@ed to naphtha prices in international mar@et5 DCC Naphtha 'ill be based on a(erage of M# and Naphtha prices5 'hile Co@er naphtha 'ill be supplied by MRPL at a discount5 84/8* streams 'ill be based upon M# prices 'hile Mi!ed !ylene 'ill be supplied at mar@et price less discount being gi(en by MRPL in the mar@et currently& <he prices of P> and 6en9ene are ta@en at = years a(erage price of 8sian Contract Price (8CP) DO6 Corea& Dor domestic sale5 it is assumed as DO6 Corea plus freightG 'hile for e!port5 price assumed at DO6 Corea minus freight from 7ndia to Corea& Natural gas 'ill be used as fuel for CPP and utility boilers as 'ell as process heating Ope! has been ta@en based upon the inputs pro(ided by <oyo/:OP& <he profitability pro;ection for the first ten years of operation is gi(en in the follo'ing tableH Table %.: Projecte, Profit / Loss statement Financial *ear En,in# <hroughput (C<P8) 7ncome Deedstoc@ Cost .6%7 .51=) -5)1? )5.-= .6%9 .5=?? 35)12 )543.6%: .5-)1 45144 -5)22 .6%< .5-)1 45)1= -5-2* .6%> .5-)1 45-41 -53.* .6%? .5-)1 4541) -54=. .6%@ .5-)1 45??2 -5?)3 .6.6 .&-)1 ?52=? -5*3= .6.% .5-)1 ?5122 352?1 .6.. .5-)1 ?5=3) 3512)

Operating Cost- fi!ed Operating Cost-(ar& P607< 0epreciation 7nterest Dinance Charges P"T <a! 0eferred <a! Liability PAT

.2) =)* ?11H 13= )1= %7: ) %7%

..1 )24 .5.=4 13= )=1 99% .= 9.?

..? ))4 .5=.1 13= =*3 <:. 1 .? <7.

.1. )3= .5==. 13= =-= >%9 .3 <@.

.1)-* .5=3* 13= =2? >@? 12 ) 44=

.-* )43 .5=-? 13= 13= ?7. .)2 .) <>?

.3) )4* .5=*. 13= 1.? @6@ .3) 4).

.3? -2= .5)2) 13= .4) @<> .?1 (=) >??

.4= -23 .5)=* 13= .1* %D69> 12) (.2) ?:7

.4? -.2 .5)4= 13= ?) %D%.<+ 11) (.3) @%>

<he pro;ect 'ill ha(e a healthy internal rate of return of .?&22 +& <he main profitability parameters of the pro;ect are gi(en in the follo'ing tableH Table %7: Projecte, Profitabilit Parameters !l No . 1 = ) Parameters Pro;ect 7RR $,uity 7RR 8(erage 0#CR Minimum 0#CR )es-lts .?&22+ 11&*2 + 1&2) .&3)

%+%7 !ensiti8it Anal sis <he profitability parameters of the Company might change 'ith the de(iation in crac@ bet'een naphtha and para!ylene/ben9ene& 8ny significant increase in the pro;ect cost 'ill also ha(e a negati(e impact on the pro;ect returns& #ensiti(ities ha(e been carried out for @ey parameters to see their effect on the profitability and pro;ect returns as belo'H !cenario I: Hi#4er Project Cost b %65 <hough contingency and inflation has been ta@en for determining the total pro;ect cost o(er the years5 ho'e(er considering the long period for de(elopment of the pro;ect5 the possibility of increase in pro;ect cost cannot be ruled out& <he increase in the pro;ect cost 'ill ha(e ad(erse impact on the pro;ect 7RR& !cenario II: Hi#4er Operatin# Expen,it-re b %65 7n the profitability pro;ections5 the operating e!penditure has been estimated based upon (arious costs associated 'ith aromatics plants as per inputs from <oyo/:OP/OMPL& 8n inflation rate of =+ p&a& has been applied on all the components of operating cost& #ensiti(ity has been carried out 'ith .2+ increase in the operating cost e(ery year& !cenario III: LoA Capacit 'tiliCation 1@652 #ensiti(ity has been carried out to chec@ the effect of lo'er capacity utili9ation on the financial parameters& 7n this case5 it is assumed that the plant operates at ?2 + in first year of operations and *2+ on'ards& !cenario I(: LoAer Mar#ins 1Crac= loAer b +'!D :6GTon2

Considering the (olatility in the crac@ bet'een naphtha and para!ylene/ ben9ene5 a sensiti(ity has been carried out 'ith lo'er crac@ of :#0 -2/<on by reducing 6enchmar@ prices of para!ylene and ben9ene by :#0 -2/ton in the first three years of operation5 'hile feedstoc@ prices ha(e been @ept at the same le(el& <he impact of lo'er margins is the most in the initial years due to high debt ser(ice obligations& <he pro;ect is sensiti(e to lo'er margin& !cenario (: Nat-ral 0as a8ailabilit from t4ir, ear 7n the profitability pro;ections5 it has been assumed that natural gas 'ill be a(ailable to the aromatics comple! from 8pril 12.1& #ince the pipelines up to Mangalore are still in the planning stage5 it may ta@e some time to implement these large infrastructure pro;ects& 0ue to this delay5 the gas may not be a(ailable to the plant in the initial years& 8 sensiti(ity has been carried out 'ith natural gas a(ailability from third year on'ards& 0ue to consumption of costly fuels in CPP as 'ell as process heating in the initial years5 the profitability of the pro;ect 'ill get affected& Results of these sensiti(e scenarios are gi(en in the follo'ing tableH Table %9 : )es-lt of !ensiti8it Anal sis "ase !ensiti8it !cenarios Case Case I Case II Case III .?&22+ .3&=*+ .4&.3+ .3&=4+ 11&*2+ 12&2?+ 1.&))+ 12&12+ 1&2) .&?.&*) .&?= .&3) .&)* .&-4 .&))

!+ No+ . 1 = )

Parameters Pro;ect 7RR $,uity 7RR 8(erage 0#CR Minimum 0#CR

Case I( .3&=4+ .*&3?+ .&*. .&1=

Case ( .4&.*+ 1.&1)+ .&*? .&)?

7t is e(ident from the sensiti(ity results that5 the profitability parameters are comfortable for the sensiti(ities related to pro;ect cost5 operating cost and lo'er capacity utili9ation& <he debt ser(icing capability of the pro;ect is not hampered e(en in the rough scenario of the crac@ remaining lo'er by :#0 -2/M< in the first three of operation& <he pro;ect 7RR is greater than .1+ in all scenarios& %+%9 Fiscal / Non3Fiscal Concessions <he pro;ect is located in #$%& <he pro;ect 'ill get benefits of $!emption from customs duty5 e!cise duty5 E8<5 ser(ice ta! etc& during construction period $!emption from income ta! during first fi(e years after CO05 and e!emption for -2 + in the subse,uent - years&& <he e!emption for -2 + income <a! can be e!tended for additional - years if spent on rede(elopment No E8<5 $!cise5 Customs 'ill be applicable on sourcing of ra' material for domestic sales /e!port of products& Ra' material 'ould be e!empted from custom duty #ale in 0omestic <ariff 8rea (0<8) 'ill attract customs duty

<o retain status of #$% unit5 the pro;ect 'ill ha(e to be net positi(e foreign income earner& 8s P> and 6en9ene are proposed to be e!ported or sold to #$% units (deemed e!port)5 'hile Naphtha 'ill be sourced domestically from MRPL& <hus the pro;ect 'ill easily meet the foreign income

earning re,uirement for retaining #$% status& Durther5 the company has approached Carnata@a state Go(t& for e!emption from Ior@s Contract <a!& %+%: Concl-sion ONGC/MRPL proposes to set up an 8romatic comple! at #pecial $conomic %one at Mangalore5 ad;acent to MRPL refinery to produce about *.= C<P8 Para!ylene and 1?= C<P8 6en9ene5 using Naphtha as the feedstoc@& <he pro;ect 'ould be implemented through a separate special purpose (ehicle (#PE) company5 ONGC Mangalore Petrochemicals Limited (OMPL) <he pro;ect 'ould en;oy the (arious ta! benefits a(ailable under the #$% policy& <he pro;ect has the benefit of synergy 'ith MRPL5 for 'hich the pro;ect is li@e for'ard integration in the (alue chain& #67C8P has e!amined the financial feasibility of the proposed pro;ect and assessed the (iability of the pro;ect under the impact of (arious ad(erse scenarios5 'hich see@ to present the results in case of changes in (arious assumptions& On an assessment of the pro;ect parameters5 it is recommended that OMPL shouldH $nter into long term feed stoc@ supply and stream e!change arrangements 'ith MRPLG <ie up off ta@e of products through long term contracts5 preferably through dedicated P<8 plant at Mangalore for -2+ of the capacity& <ie-up the balance -.+ of the pro;ect e,uity5 @eeping in (ie' the synergies brought in by the in(estor in technology and mar@eting of finished productsG Dinali9e arrangements 'ith M#$% for Land Lease agreement and facilities to be pro(ided by itG 7dentify core pro;ect implementation team and ma@e arrangements for co ordination of the pro;ect implementation in such a manner that the pro;ect is completed 'ithin the time frame en(isagedG Obtain necessary statutory clearances

<hus5 based on the financial appraisal e!ercise5 it may be concluded that5 considering the pro;ected performance of the proposed pro;ect5 the company is e!pected to meet its debt ser(ice obligations to'ards the pro;ect& <he o(erall financial5 li,uidity and profitability parameters of the pro;ect are considered reasonable and satisfactory& #ub;ect to the ris@ factors5 the 'ea@nesses and threats enumerated and the impact of (arious scenarios en(isaged under sensiti(ity analysis5 OMPL"s proposed pro;ect can be considered financially (iable& Annex-re3 %+%< Ass-mptions for Profitabilit Projections %+%<+% Project Timelines Commercial Operation 0ate 2. 8pril 12.1 Dinancial year for first year Operation =. Mar 12.= Pro;ect Life 12 Jears %+%<+. Macroeconomic Ass-mption

Factor Per ann-m 7ndian 7nflation Rate =+ Doreign 7nflation Rate 2+ 7NR/:#0 0epreciation Rate .+ 6ase 7NR-:#0 $!change Rate (as on .st 8pril5 122*) )?&-2 %+%<+7 Capital !tr-ct-re 0ebt 3-+ 0ebt $,uity Ratio 3-&=Percentage $,uity by Promos )*+ :pfront $,uity (out of total e,uity) )*+ %+%<+9 Capacit 'tiliCation *ear of operation Capacit 'tiliCation .st Jear ?2+ 1nd Jear *2+ rd = Jear beyond .22+ %+%<+: Pro,-ct Capacit an Material "alance !+ No Material Fee,stoc= . DCC naphtha 1 Co@er naphtha = #t Run naphtha ) Fea(y naphtha side dra' 84 - rich stream 3 8? - mi!ed !ylene 4 8* - rich stream ? Light Reformate Total Pro,-cts . Para!ylene 1 6en9ene = Paraffin Rich Raffinate ) Duel gas LPG 3 Fea(y 8romatics 4 Fydrogen Total %+%<+< Fee,stoc= Pricin# Ass-mptions Deedstoc@ pricing is based the =-year a(erage of monthly a(erage prices (8pril 122- - Mar 122?) for different items& Fee,stoc= "enc4mar Price "asis of Pricin# ;-antit 1TMTPA2 -.1.&2 .?.&2 -.=&= .1=&4 1=.&2 1)4&2 .1-&2 2&2 %:9.+6 *.=&4 1?=&. .12&? .4=&? 12&2 ..&1 .*&) %:9.+6 5 of Total 4&?-+ ..&4)+ ==&1*+ ?&21+ .)&*?+ .3&21+ ?&..+ 2&22+ %66+665 -*&1-+ .?&=3+ 4&?=+ ..&14+ .&=2+ 2&4=+ .&13+ %66+665

= DCC naphtha M# Co@er naphtha Naphtha #t Run naphtha Naphtha Fea(y naphtha side dra' Naphtha 84 - rich stream M# 8? - mi!ed !ylene M> 8* - rich stream M# Light Reformate M#

1)s+GMT2 13)4*&23 1)1-3&?* 1-.4*&?* 1-.4*&?* 1444?&1= =1))?&*3 1444?&1= 1444?&1=

<rade Parity Pricing (DO6 Mangalore) N Rs&*1=/M< (DO6 Mangalore) (DO6 Mangalore) <rade Parity Pricing DO6 Corea - :#L *2/M< <rade Parity Pricing <rade Parity Pricing

%+%<+> Pro,-ct Pricin# Ass-mptions Product pricing is based on the =-year monthly a(erage prices (8pril 122- - Mar 122?) for different products as belo'H Fee,stoc= Para!ylene (domestic)M Para!ylene (e!port) 6en9ene (0omestic) 6en9ene (e!port) Paraffin Rich Raffinate (0omestic) LPG "enc4mar= Price 1)s+GMT2 P )-42?&23 "asis of Pricin# CDR 8CP O Dreight (Corea to Mangalore) CDR 8CP Dreight (Corea to Mangalore)

P>

).*1?&23

6% 6% Naphtha

=*=*1&?1 =?))4&?1 1-.4*&?* DO6 Corea (DO6 Mangalore) DO6 8rab Gulf O Dreight ( 8G to Mangalore) <hree times (alue of light naphtha

LPG

1)*.-&.3

Fydrogen (0omestic)

Light Naphtha

4--=*&34

-2+ para!ylene to be sol domestic mar@et from 1nd year on'ards& %+%<+? Financin# Ass-mptions Rupee <erm Loan 7nterest Rate (Rupee <erm Loan) Moratorium Period Repayment Period 7nterest rate for IC .22+ ..&2+ 3 ,uarters after CO0 * years (=3 e,ual ,uarterly payments) ..+

borro'ing

%+%+<+@ Bor=in# Capital Ass-mptions Item Norm In8entor Deedstoc@ = days consumption CPP/process Duel = days consumption Ior@-in-process = days of cost of production Dinished Goods .1 days of production Chemicals consumables .- days of cost )ecei8ables 0omestic 1. days of sales $!port 1. days of sales Cre,itors 1. days purchase (feedstoc@ and CPP fuel) %+%<+%6 Operatin# Costs (ariable Costs <he basis of computation of ch (ariable cost item is indicated belo'H Item Catalysts Chemicals Ra' 'ater Description 8s indicated by OMPL/<oyo& <he same ha(e been assumed to be escalated at =+ p&a&

Rs&.1&- per cum for fresh 'ater and Rs&.4&- per cm for treated 'ater (Re,uirement of .3) cm/hr of fresh 'ater5 =)2 cm/hr of treated 'ater) Po'er Pro;ect 'ill re,uire -. MI of po'er #team and .34&- <PF of #team at .22+ capacity utili9ation& <he CPP shall use gas as the primary fuel5 and gas has been assumed to be a(ailable from first year of operation& <he price of natural gas has been assumed at 4 L/mmbtu& Port Fandling Rs&42 per tonne for e!port of P> and 6en9ene is payable to Ne' Mangalore port trust per the published tariff of NMP< Fixe, Costs <he basis of computation of fi!ed costs is as follo'sH Item Description

Repairs and Maintenance #alary Iages

7nsurance 8dministrati(e $!penses $lectricity Charges Rs&1- la@h per month (Di!ed) Land Lease Rs&-25222 per acre per year charges

2&-+ on Plant Machinery and 6uildings in the first fi(e years of operation and . +thereafter Rs&14&2 crore based upon =22 people 'ith Rs&*&2 lacs pa& 2&1-+ of Plant Machinery and 6uildings 2&-2+ of Net sales of the company

Number of operating hours h been assumed as ?222 hours/ year Operating Costs are escalate annually at =+ p&a& %+%<+%% Depreciation Ass-mptions Item !LM3"oo= Depreciation Plant Machinery Misc& 8ssets 6uilding BD(3Tax Depreciation Plant Machinery Misc& 8ssets 6uilding Maxim-m Depreciation Depreciation )ate

*-+ *-+ *-+

-&1?+ -&1?+ .&34+

.22+ .22+ P .22+

.-+ .-+ .2+

%+%<+%. Tax ass-mptions <a! .22+ e!emption on Folida e!port/deemed e!port income y for first fi(e years and -2+ e!emption thereafter in ne!t fi(e years& M8< rate ..&==+ (M8< not applicable to OMPL)

7ncome ==&**+ <a! rate %+%> Projecte, Financials %+%>+% Projecte, P/L

Financial *ear3 .6%7 En,in# <hroughput (C<P8) .1=)

.6%9 .=??

.6%: .-)1

.6%< .-)1

.6%> .-)1

.6%? .-)1

.6%@ .-)1

.6.6 .-)1

.6.% .-)1

In )s crore .6.. .-)1

Total Income :D9.?+9? <D9.6+.6 >D.><+?9 >D9.7+79 >D:>.+9% >D>.9+9? >D?>@+<: ?D67?+.? ?D%@@+>% ?D7<9+7@ Deedstoc@ $!pense )5.-1&3? )543-&.) -5)22&)- -5-2?&4. -&3.?&?) .5**=&=2 152==&?4 1524-&1? 15..4&)3 15.32&-2 Di!ed operating cost Eariable operating cost Total operatin# cost P"DIT 7nterest on L< loan 7nterest on IC borro'ings Total Financin# Expenses 0epreciation P"T Current <a! 0eferred <a! PAT .2)&1) ...&-1 ..?&.? .1.&=? .1)&3=)*&)1 )23&*3 ))3&-= )31&4) )-*&)* 9:7+<> :%?+9> :<9+>% :?9+%. :?9+%9 .-*&.4 .3=&-3 .3?&2* .41&4) .44&-. )4-&4= )4?&*= -2=&1) -23&2= -.2&.= <79+@6 <9.+9@ <>%+77 <>?+>> <?>+<:

?11&.) .5.=3&-? .5=..&3* .5==2&-. .5=3*&)= .5=-?&)2 .5=*.&=4 .5)2=&*- .5)=?&42 .5)41&?)..&.? )2-&)4 =3-&)* =.*&?2 14)&.1 11?&)= .?1&4) .=4&23 *.&=4 )-&3* .1&21 13&)3 =2&*3 ==&)1 =)&.1 =)&?* =-&42 =3&-2 =4&=. =?&2-

9.7+%@ 97%+@. 7@<+9: 7:7+.7 76?+.9 13=&)* .=-&)3 )&1) .=.&1. 13=&)* )).&.4 .=&). )14&43 13=&)* 3-.&4) .&*? .4&?= 3=.&*) 13=&)* 4.=&?2 .-&)4 3&1. 3*1&.. 13=&)* 4*4&42 12&.= )&.2 44=&)4

.<7+7. .%?+99 %>7+:< %.?+<? ?7+>9 13=&)* ?=.&-* .=*&*1 .)&2) 344&3= 13=&)* *2*&)) .3=&3)&41 4).&24 13=&)* *33&*2 .?1&1. (=&1.) 4?4&*2 13=&)* 13=&)* .52)3&-= ..1-&31 12=&42 11)&2* (*&*3) (.-&4.) ?-1&4* *.4&1)