Essar to raise $750 million for Vadinar expansion

Essar Oil plans to raise US$750 million overseas to expand its Vadinar refinery into the second-biggest crude oil-processing plant in the country. The Vadinar refinery in Gujarat currently operates at a capacity of 7.5 million tons and is expected to reach its full capacity of 10.5 million tons by October. The company is seeking shareholders approval to raise the funds to expand the plant’s capacity to 16 million tons in three years, it said in a statement to the Bombay Stock Exchange. The Vadinar refinery can produce LPG, naphtha, diesel, vacuum gas oil, jet fuel, kerosene, fuel oil and petrol. The refinery upgrade would also enable the unit to produce petrol and diesel compliant with Euro III and IV emission norms. Industry sources said the company was unlikely to sell shares in the overseas markets as it was contemplating delisting in the domestic market. (September 1, 2007)