Clarification
ABB will continue to be actively associated with the Essar Oil Refinery
project. Essar Oil may also bring in other additional contractors to
supplement/complement ABB's role for completion of the project.
As per the CDR package, the
promoters, along with their associates, are committed to bring in the entire
equity required for completion of the project and this position remains
unchanged.
The plans to complete the
refinery in the next 18-24 months as envisaged in the CDR package also remain
unchanged.
The company has received
formal sanction of the lenders for the remaining amount for completion of the
project and the company is presently in the process of complying with these
formalities.
Background note on Essar Oil Refinery for reference
In a bid to physically restart work on its 12mmtpa refinery project, Essar Oil
has begun to mobilize the necessary equipment and men at its site at Vadinar,
District Jamnagar. EOL is in talks with vendors and suppliers who are
associated with the project and is in the process of completing the necessary
documentation. Essar Oil is currently implementing a 12mtpa refinery project
(post de-bottlenecking) at Vadinar in Gujarat. The project cost of Rs9863 crore
(excluding funded interest term loan) is funded through a debt-equity of 2.26.
The plant is so designed as to maximize middle distillates, which has great
demand in Indian market.
EOL has completed 64
percent of the work on the refinery and has already incurred Rs6300 crore in
expenses (including the terminal) till date. All the major plant and machinery
valued at USD 430 million have arrived on the site and another USD 200 million
worth of equipment is ready for shipment. The project is ideally located on the
west coast of India at Vadinar with natural deep draft suitable for berthing
very large crude carriers (VLCC) and is closer to the source of crude supply.
The state of the art technology permits the flexibility to handle diverse crude
for processing.
The entire equity and debt
for the project is tied up. The company has recently achieved full financial
closure. The company is in the process of completing its balance work within 18
- 24 months. This project will be India's 2nd largest green-field
refinery after RPL, which has commissioned its 27 MTPA refinery. The project
has significant advantage by virtue of the port in Vadinar, which is a deep
water all weather port.
Recently, the company has
entered bulk retailing of petroleum products with a plan to set up 2500 retail
outlets of which thirteen are fully operational in Maharashtra / Gujarat / Punjab.
