Essar to invest Rs 500,000 mn in Gujarat

Ahmedabad: The Essar group has chalked out plans to invest Rs 50,000 crore over the next three years in Gujarat.

This was stated by the group’s Chairman Shashi Ruia at the inaugural function of a pre-engineered building construction manufacturing facility near Ahmedabad.

“So far, we have invested Rs 25,000 crore in the state and we aim to invest Rs 50,000 crore more for various projects, including steel, SEZ, oil and gas and power in the next three years,” Ruia said on Sunday. About the details of the investment, Ruia refused to comment.

Essar Oil had announced a few months ago that it aims to increase the capacity of the Vadinar refinery from 10.5 million tonnes (220,000 bbls per day) to 34 million tonnes per annum (700,000 bbls per day).

The expansion is being carried out at a cost of about Rs 24,000 crore.

The refinery was commissioned in November last year and its installed capacity of 10.5 million tonnes per annum was achieved at a cost of approximately Rs12, 000 crore.

Essar is planning to set up two 1200 mw power project with Rs 8,000-10,000 crore investment, sources said.

Besides, the company is aiming to enhance its steel capacity from 4.6 million tonnes to 9 million tonnes in Gujarat, the sources added.

Essar Global, the holding company of the Essar group, is planning to raise its overall capacity of steel in India and outside to 15 million tonnes for an estimated investment of $ 2 billion, according to the sources. Essar is enhancing its overall power generation capacity to 6,000 mw for an investment of $5 billion.