Essar ties up Rs 5,000-cr credit to meet tax liability | business | Hindustan Times
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Essar ties up Rs 5,000-cr credit to meet tax liability

business Updated: Jul 23, 2012 20:25 IST
HT Correspondent

Ruias-controlled Essar Oil Ltd said on Monday that it has tied up a new credit facility of up to Rs 5,000 crore from domestic banks to meet its sales tax liability of Rs 6,169 crore.

The managing director & chief executive officer of Essar Oil, Lalit Gupta, said: “Our lenders have continued to be very supportive of the business, which remains well placed given the demand for high value fuels both in India and internationally.”

The Gujarat government has asked Essar Oil to pay its sales tax liability at the earliest and had last month seized Essar Oil’s three bank accounts for early recovery of its dues.

“The company continues to pursue the matter of repayment schedule of its sales tax liability both legally and with the Gujarat government,” an Essar Oil statement said, adding that the company is confident that with this facility tied up it will be in a position to meet its entire payment obligations.