Essar Energy gets 900m dollar loan to cover tax bill
Essar Energy, the India focused energy firm, says its subsidiary, Essar Oil, has agreed a loan facility to pay a tax bill owed to the Government of Gujarat.
Essar Energy, the India focused energy firm, says its subsidiary, Essar Oil, has agreed a loan facility to pay a tax bill owed to the Government of Gujarat.
The credit facility agreed with several Indian banks is worth $900m against the tax liability of $1.12bn.
Essar is currently going through a legal process to determine the schedule for repayment to the Gujarat authorities.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Lalit Gupta, Chief Executive Officer of Essar Oil, said: "The new loan facility will enable Essar Oil to meet its sales tax liability. 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 tax issue in Gujarat has been part of the reason Essar shares have fallen 70% in the last 12 months.
BS
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
The five insurance policies you should have
Some insurance cover will be more important than others. We look at five insurance policies you may need to have to make sure you aren’t caught out in an emergency
-
Is Donald Trump putting the US dollar in danger?
Donald Trump's administration sees one of its greatest advantages – the US dollar – as a burden. Gold is the obvious beneficiary, says Cris Sholto Heaton.