Sources said that the scope of the project has been changed to include other infrastructure like installations. Hence, while technically, there is no change from the original estimate of Rs 750 crore to build the pipeline, the revised cost, after factoring in these additions, would now be slightly over Rs 1,000 crore.

Based on a 3:1 debt, equity ratio, the three partners with 26 per cent each --HPCL, MRPL and Petronet India--will now have to chip in with roughly Rs 62 crore each. The balance will be offered to strategic and financial investors like the State Bank of India and the Infrastructure Leasing & Financial Services.

MRPL, it may be recalled, was intwo minds about picking a stake in the project as its joint venture partner in the refinery (the other being the AV Birla group of companies), HPCL, had already committed itself to participating in the equity of the pipeline. The network will evacuate the products from MRPL whose capacity is being expanded to nine million tonnes from three million tonnes.

Big players in the EPC (engineering, procurement and construction) business like Larsen & Toubro have also reportedly indicated that they would like to pick a stake in the project. However, the Petronet top brass is believed to have made it clear that this would not automatically translate into L&T being given the first right of refusal to execute the contract.

The Mangalore-Bangalore pipeline (MBPL) is proposed to be set up by Petronet-MHB, a joint venture of Petronet, HPCL and MRPL. It will be 364 kilometre long and designed for the final throughput of 8.5 million tonnes. However, other facilities like a pumping system and loading facilties arecurrently designed for a throughput of 5.6 million tonnes. The pipeline will transport motor spirit, superior kerosene oil, high speed diesel, aviation turbibe fuel and naphtha.

It will cater to the consumption zones of Karnataka and Andhra Pradesh and would be configured as: