Crude refining major Essar Oil Ltd on Tuesday announced completion of its Rs 10,000 crore expansion project at Vadinar in Gujarat, four months ahead of the schedule.
The total refining capacity will go up to 20 million tonnes (mt) a year or 405,000 barrels a day.
The company is also becoming self-reliant in its power requirement with the commissioning of its 500 megawatt (MW) imported coal-fired captive power plant in June-end, Mr Lalit K. Gupta, Managing Director and CEO, said here.
For the last four years, the Essar refinery is running at 125 per cent of its capacity, which expanded from 10.5 mt a year to 18 mt a year in March this year. Essar Oil's own power requirement is 300 MW.
The captive power plant will bring down cost of refining by $1/barrel. The company has so far invested Rs 24,000 crore at Vadinar, he said.
With the Reliance refinery also in Jamnagar, the westernmost city in Gujarat now accounts for 40 per cent of India's refined oil production. Essar Oil, at present, sources crude from West Asian countries such as Abu Dhabi, Iraq, Iran, and also Latin American countries.