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Essar Oil plans Vadinar plant capex programme

Monday, 03 Jun 2013

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Essar Oil is planning to increase the capacity of its Vadinar refinery in Jamnagar district of Gujarat, from the present 20 million tpa to 40 million tpa in the next five years.

For the purpose, the company intends to invest Rs 35,000 crore. It will put the expansion plans in place only after it achieves a reasonable certainty on leverages and certain cash flow. For its proposed expansion plan the company has requested the oil ministry to grant it tax exemptions.

The company commissioned its Vadinar refinery in 2008, increasing its capacity from 10.5 million tpa to 18 million tpa and then to 20 million tpa in last year, with a total investment of Rs 24,000 crore. It produces LPG, naphtha, light diesel oil, aviation turbine fuel and kerosene.

Meanwhile, it is also planning to invest Rs 40,000 crore to set up an integrated petrochemical project.