The Oil and Natural Gas Corporation plans to invest around Rs 750 crore (Rs 7.50 billion) on upgrading the product quality and debottlenecking in Mangalore Refinery and Petrochemicals Ltd, and intends to commission one or two outlets as part of the company's retail initiative.

"We plan to invest around Rs 400-500 crore (Rs 4-5 billion) on upgrading the MRPL's product quality and another Rs 250 crore (Rs 2.50 billion) on debottlenecking," ONGC chairman and managing director Subir Raha said at an analysts meet in Mumbai on Wednesday night.

Having acquired the Aditya Birla group's stake in MRPL, ONGC bought 20.9 per cent shareholding from banks and the FIs and now has 72 per cent holding in MRPL.

"We expect to operate MRPL at near 100 per cent capacity this year," Raha said.

On ONGC's retail strategy, he said the company would commission one or two outlets in FY04. The whole network of 1,100 outlets would take at least 3-5 years to be in place.

"The company has large real estates, of which few could be utilised for setting up such outlets, he said, adding the products would be sold under the ONGC brand.

He said the total capital investment for 2003-04 was pegged at Rs 16,566 crore (Rs 165.66 billion).

ONGC, which registered a profit of Rs 10,529 crore (Rs 105.29 billion) in FY03, would spend Rs 4,000 crore (Rs 40 billion) on exploration, Rs 1,700 crore (Rs 17 billion) on developmental drilling, Rs 4,000 crore (Rs 40 billion) on production capacity expansion, Rs 300 crore (Rs 3 billion) on R&D and the balance, around Rs 6,200 (Rs 62 billion), would go to the ONGC Videsh Ltd, Raha added.