Essar Oil has raised $920 million (approx Rs 4,598 crore) to fund its Phase I
of Vadinar refinery expansion plan in Gujarat.
The company has received approval for the debt from ICICI Bank, IDBI and SBI
and it is likely to sign loan agreements by August 2009.
The Vadinar refinery currently operates at 133 per cent of its nameplate
capacity of 10.5 million tpa which is being raised to 16 million tpa. Phase I
expansion is expected to cost around $1.6 billion (approx Rs 7,744 crore). Of
this, Rs 4,600 crore is debt and the rest equity.
Besides, in Phase II, plans are afoot to add a new 18 million tpa processing
unit at an investment of $4.4 billion (approx Rs 21,296 crore) by December 2011.
Phase II is likely to be taken up post completion of Phase I.
Also See:
Essar Oil to
acquire stakes in Kenya refinery (26-Mar-09)