Russia-Backed Nayara Energy Announces Aggressive Indian Expansion Plans, Proposes Rs 1.5 Lakh Crore Investment

Nayara Energy, which was formerly Essar Oil, has announced ambitious expansion plans in India. The Russian energy giant Rosneft-backed oil company plans to set up a greenfield petrochemical complex in Gujarat while expanding its refining capacity from 20 million tonnes per annum (mtpa) to 46 mtpa.

It has been estimated that the cumulative investments which include a ramping up of retail presence and additional investments at Vadinar port would be in the region of Rs 1.5 lakh crore. In a presentation to the government, Nayara Energy is reported to have pitched that their expansion would be focused on increasing fuel products and petrochemical feedstock production.

The company plans to carry out its expansion in phases with the same expected to be complete by 2024. According to reports, the company has made a proposal to the Deendayal Port to set up a single point mooring (SPM) and two product jetties at an estimated cost of Rs. 450 crore. The announcements by Nayara Energy are especially significant as India has in recent years emerged as major refiner only behind the United States, China and Russia in terms of refining capacity.