New Delhi: Essar Oil said on 31 August it will raise $750 million (Rs3,079 crore) for the proposed expansion of its Vadinar refinery in Gujarat.
The company would seek shareholders approval for raising the funds through the issue of Foreign Currency Convertible Bonds (FCCBs) or other convertible financial instruments in overseas markets on preferential basis, Essar said.
When contacted, a company spokesperson said the funds are primarily for the proposed expansion of its Vadinar refinery in Gujarat from 10.5 million tonnes to 16 million tonnes and its upgrading. He did not elaborate any further.
Industry sources said the expansion would cost $1.2 billion and would be completed by 2010. It would enable Essar to process heavy and soar (high sulphur) crude.
The refinery upgrade would help the unit produce petrol and diesel complaint to the Euro III and IV emission norms.
Earlier this month, Essar upgraded its Vadinar refinery capacity to 10.5 million tonnes.
The company would convene an annual general meeting on 29 September for seeking shareholders approval for the said fund raising.