The country’s second largest private sector refiner Essar Oil has chalked out plans to invest Rs 1,600 crore to upgrade its Vadinar refinery in Gujarat and boost gross refining margins over the next two-three years.
“Our 20 MMTPA Vadinar refinery is looking at earning an additional $1.50 (per barrel of crude) on its Gross Refining Margin (GRM) on the back of Rs 1,600 crore of investments. “We have already invested Rs 400 crore during a 28-day planned shutdown of the refinery in September-October last year,” Essar Oil Managing Director and CEO Lalit Kumar Gupta told PTI here. “A further Rs 1,200 crore will be invested to make additional upgrades in the various refinery units over the next 2-3 years,” he said. The project will be funded through internal accruals only as company generates $1 billion EBIDTA and saves good amount of money every year, Gupta said.