Essar subsidiary makes first tax payment

Essar Energy, the India-focused integrated energy company, has reported that its subsidiary Essar Oil has made an initial payment towards the deferred sales tax liability from its Vadinar oil refinery.

The company has paid Rs 10bn (around $182m) to the Gujarat government out of a total of Rs. 61.69bn (around $1.12bn) that is due.

In a statement the company said: "Essar Oil continues to pursue the matter of a schedule for repayment of the overall sales tax liability both by legal means and with the government of Gujarat."

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues 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

Sign up

Earlier in July Essar Oil secured a loan facility to pay back the tax bill. The facility is worth $900m against the tax liability of $1.12bn.

The share price fell 1.03% to 115.10p by 14:55. The stock is down 68% over the past year, equal to 245p.

NR