Mumbai: In response to Essar Oil's petition in the
Honorable Supreme Court on principal repayment schedule and
waiver\remission of interest in the Sales Tax issue, today
the honorable court has directed the company to pay Rs.
1,000 crore to the Gujarat government towards sales tax\VAT
dues by July 30th. Essar Oil had offered to pay this amount
in its submission to the court.
On payment of this amount of Rs. 1,000 crore, coercive
steps already taken by State, would be stayed.
As previously announced, Essar Oil is also in advanced
discussions with Indian lenders with regard to putting in
place a c.US$1 billion (Rs. 50 billion) loan facility as a
contingency measure for use in the event that the sales tax
liability becomes payable immediately or that Essar Oil is
not able to negotiate a satisfactory repayment schedule. We
expect this facility to be finalised shortly.
About Essar Oil
Essar Oil is a fully integrated oil & gas company of
international scale with strong presence across the
hydrocarbon value chain from exploration & production to
refining and oil retail. It has a global portfolio of
onshore and offshore oil & gas blocks, with about 2.1
billion barrels of oil equivalent in reserves & resources.
Essar Oil now has 405,000 bpsd (barrels per stream-day) of
crude refining capacity. There are more than 1,600
Essar-branded oil retail outlets in various parts of India.