Lenders okay sale of Essar Oil to Rosneft-led group

THE REFINERY at Vadinar on the west coast of Gujarat has a debt of `26,000 crore. Out of this, SBI alone has around `3,500 crore THE DEAL involves the 20-million tonne per annum or a 4,05,000-barrels-a-day refinery in Vadinar, along with 3,500 oil retail

Mumbai, June 23: A consortium of 23 lenders led by SBI on Friday cleared the `86,000-crore sale of Essar Oil to Russia’s Rosneft-led group after the Ruias agreed to clear a part of the `26,000-crore loans, including that of LIC .

Essar Group sources said they hope to conclude the $12.9-billion all-cash deal to the Russian government-controlled the remainder to a new owner, which is better-rated. Rosneft by July 10. This is Sources did not the largest foreign investment elaborate on how much of in the country till the existing loans will be date. When asked whether cleared though. the 23 lenders also include “The fact is that LIC has LIC, to which the company nothing to do with Essar owes `1,290 crore, an official Oil. The `1,290-crore loan answered in the affirmative. from LIC is towards Essar Power. But still we decided

According to the to clear that loan by sources, the agreement agreeing to pay `850 crore came in after the Ruias to LIC,” an Essar official agreed to clear most of the told PTI. `26,000-crore dues to the It can be noted that LIC’s lenders on completion of refusal to clear the sale the transaction and transferring was one of the biggest stumbling blocks to the completion of the largest corporate deal in the country that was signed on October 15 last year in the presence of Prime Minister Narendra Modi and Russsian President Vladimir Putin in Goa on the sidelines of the BRICS summit.

The `86,000-crore transaction involves the Ruias completely exiting its cash cow to Russian giant Rosneft and a consortium led by Trafigura-UCP.