Ruias-owned Essar Oil, which finished completion of 18 million tones of its Vadinar refinery on Thursday, has kept the second phase of refinery expansion project to 38 million tones on the backburner as the seven-year tax holiday ends on March 31, 2012. However, the 18 million tones refinery will enjoy tax holiday for seven years, along with HPCL’s Bathinda refinery and BPCL’s Bina refinery as they were commissioned within this fiscal.
Confirming the move, Essar Oil managing director and CEO Lalit Kumar Gupta told TOI: “We had plans to increase the Vadinar refinery capacity to 38 million tones. But as of now we would remain focus on 20 million tones. We are in no hurry.” When asked if the removal of tax holiday on new refinery projects is a reason why the company is going slow on the second phase expansion, Gupta said, “We have already said that withdrawing of such benefits would impact new investments in India.” However, Naresh Nayyar, CEO of Essar oil parent firm Essar Energy Plc. is upbeat about India refinery prospects in coming years. “India is witnessing a healthy growth in petroleum products and we would refinery capacity of 9 million tones per annum to keep pace with demand,” said Nayyar.
Shares of Essar Oil gained marginally to close at Rs 52.65 in a flat Mumbai market on Thursday.
Confirming the move, Essar Oil managing director and CEO Lalit Kumar Gupta told TOI: “We had plans to increase the Vadinar refinery capacity to 38 million tones. But as of now we would remain focus on 20 million tones. We are in no hurry.” When asked if the removal of tax holiday on new refinery projects is a reason why the company is going slow on the second phase expansion, Gupta said, “We have already said that withdrawing of such benefits would impact new investments in India.” However, Naresh Nayyar, CEO of Essar oil parent firm Essar Energy Plc. is upbeat about India refinery prospects in coming years. “India is witnessing a healthy growth in petroleum products and we would refinery capacity of 9 million tones per annum to keep pace with demand,” said Nayyar.
Shares of Essar Oil gained marginally to close at Rs 52.65 in a flat Mumbai market on Thursday.
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