The Hindu Business Line : Essar Oil arm plans captive power plant in Gujarat

ESSAR Oil Ltd told the Bombay Stock Exchange on Friday that Vadinar Power Company Ltd, a wholly owned subsidiary of the company, is setting up a 77-MW captive co-generation power plant in Vadinar in the Jamnagar district of Gujarat.

The power plant is being set up to supply power and steam to the 10.5-million-tonne refinery that Essar is putting up there.

The captive co-generation project achieves financial closure with common loan agreements and security documents for the project being signed by the lenders to the said power project.

PFC is the lead financial institution and shall provide a loan of Rs 270 crore.

The balance debt of Rs 105.3 crore would be provided by IDFC, the company said.

Meanwhile, Mr Shashi Ruia, Chairman, Essar Oil Ltd, while addressing the fifteenth annual general meeting of the company in Vadinar today, said the company expected to complete the refinery marginally ahead of schedule.

Work at the refinery is in full swing with almost all equipment in place and civil construction completed, he said.

"By the time you are here for the next AGM, we will be in a position to show you the initial products from this refinery," Mr Ruia told Essar Oil shareholders.

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