Private sector refiner, Essar Oil, has managed to tie up Rs 9400 crore debt facility to replace its Corporate Debt Restructuring (CDR) loan facility, which was set up in December 2004, to help construct the company’s refinery at Vadinar in Gujarat. The company also has received approval for the exit of its CRD facility, a move that would aid the company in enjoying greater operational and financial flexibility. Further, this debt facility has been organized from the same group of lenders who had set up the CDR facility and would be on mutually acceptable commercial terms.
The Vadinar refinery which commenced commercial production in May 2008 with a capacity of 10.5 mtpa (million tonnes per annum) has been upgraded to a capacity of 20 mtpa in recent months. Recently, the Gujarat Government also lifted its freeze on Essar Oil accounts, after the company complying with the Supreme Court direction’s deposited sum of Rs 1,000 crore with the state government for sales tax liabilities totaling Rs 6,169 crore.
Essar Oil is a fully integrated oil & gas company of international scale with strong presence across the hydrocarbon value chain from exploration & production to refining and oil retail.
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