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Government intervention sought in Vadinar refinery project

Friday, 03 Jan 2003
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The Essar group has sought intervention from the Union Ministry of Petroleum & Natural Gas for the completion of its 10.5 million tonne Vadinar refinery project in Gujarat.

 

Essar has also asked for Indian Oil Corporation (IOC) to invest around US$ 100 million in the project and sign a marketing agreement for the sale of products from the refinery.

 

However, IOC is reportedly, not interested in the project, as it already has a capacity of more than 10 million tonnes in Gujarat  from its Koyali refinery.

 

It may be noted that the refinery project, which is being implemented by Essar Oil, has already achieved financial closure,

with the group investing around Rs.6,300 crore in the project.

 

According to reports, Essar Oil plans to complete the much delayed refinery project within 18-24 months.

 

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