Mangalore Refinery and Petrochemicals Limited has secured authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB) to expand its petroleum pipeline infrastructure. The approval allows the company to lay, build, operate, or expand a pipeline dedicated to Aviation Turbine Fuel (ATF).

The project involves the construction of a pipeline from Devangonthi to the Existing Common User Fuel Farm Station and the Upcoming Satellite Fuel Farm Station located inside the Kempegowda International Airport in Bengaluru. This expansion is aimed at enhancing the fuel supply chain to the airport.

The authorization was granted by a domestic entity, the PNGRB, under the regulatory framework governing the petroleum and natural gas sector. The company confirmed that the order does not involve any related party transactions and that the promoter group has no interest in the entity awarding the authorization.

The project is slated for execution within a period of 36 months from the date of authorization. The system capacity for the petroleum and petroleum product (ATF) pipeline is specified to be equal to 2.5MMTPA.

Key Project Details

Mangalore Refinery and Petrochemicals Limited has secured a significant legal victory, receiving a favourable final order from the Customs Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore, in a long-standing customs classification dispute involving imported 'Reformate'. The communication was received on 13th May 2026 at 02:10 PM, and the development was disclosed to stock exchanges on 14th May 2026 under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background of the Customs Classification Dispute

The dispute centred on the customs classification of 'Reformate' imported by MRPL during the period October 2015 to February 2017. MRPL had classified the imported goods under CTH 27075000, while the Customs Department contended that the correct classification was CTH 27101219. Based on this reclassification, the department directed payment of differential duties and levies, resulting in a substantial total demand against the company.

The following table summarises the components of the total demand raised by the Customs Department:

During the course of investigation, the Customs Department had appropriated an amount of ₹212.53 crore deposited by MRPL under protest, adjusting it against the aforesaid differential duty and other levies.

CESTAT Rules in Favour of MRPL

MRPL filed an appeal before the Hon'ble CESTAT, Bangalore, challenging the department's order-in-original dated 16.09.2019 passed by the Commissioner of Customs, Mangaluru (Order-in-Original No. MLR-CUSTOM-000-COM-005-19-20). The tribunal, vide its Final Order No. 20625/2026, allowed MRPL's appeal with consequential relief, if any, as per law. The cross objections filed by the department (Customs Cross Objections No. 20153 of 2020) were also addressed as part of the proceedings under Customs Appeal No. 21090 of 2019.

Financial Implications for MRPL

The favourable order carries meaningful financial implications for the company, as detailed below:

MRPL is now eligible for a refund of the customs duty amounting to ₹212.53 crore paid under protest, which is expected to improve the company's cash flow position. Additionally, the contingent liability aggregating to ₹616.82 crore, which was previously reflected on the company's books, stands extinguished following the tribunal's order. MRPL has stated that it shall file a refund application under the provisions of the Customs Act, 1962, within the prescribed statutory timeline. No aberrations, non-compliances, penalties, or restrictions were identified or imposed pursuant to this communication.