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Essar Oil ties-up new credit facility to repay deferred sales tax liability

23 Jul 2012 Evaluate

Essar Oil, India’s second largest private refiner, has tied up a new credit facility from its domestic banks to provide a credit line of up to Rs 5,000 crore to meet its sales tax liability of Rs 6,169 crore. The company continues to pursue the matter of repayment schedule of its sales tax liability both legally and with the State Government. The company is confident that with this facility tied up it will be in a position to meet its entire payment obligations.

Besides, the completion of the Vadinar refinery phase 1 expansion and the early completion of the additional optimization project at Vadinar complete the scheduled capex programme for the refinery. With its benchmark low operating costs and enhanced scale and complexity, Vadinar is expected to deliver significantly enhanced margins and cash flow generation in future.

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.

Peers
Company Name CMP
Reliance Industries 1309.35
Indian Oil Corp. 143.45
BPCL 306.40
HPCL 392.05
MRPL 154.10
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