Business Companies 24 Jun 2017 Here is why IB, Home ...

Here is why IB, Home Ministry red flagged Essar-Rosneft deal

DECCAN CHRONICLE
Published Jun 24, 2017, 9:18 am IST
Updated Jun 24, 2017, 9:25 am IST
Security agencies raise objections over inclusion of Vadinar port in sellout agreement.
Essar is a giant energy player in India.
 Essar is a giant energy player in India.

Mumbai: India's Essar Oil and Russia's Rosneft on Friday revealed that Rs 80,000 crore buyout was complete now. Under the purchase deal, Roseft will get Essar oil refinery in Gujarat which is second largest facility in India.

A report on ET Now says that due to some security fears the deal has hit a hurdle of India's security agencies. Home Ministry and Intelligence Bureau have raised certain objections over inclusion of Vadinar port being part of the sellout.

 

The $13 billion or Rs 80,000 crore deal has been touted as largest foreign direct investment or FDI into India. The deal was signed by Prime Minister Narendra Modi and Russian President Vladimir Putin during latter's visit to Goa for BRICS summit last year.

Agencies raise these concerns as Vadinar port lies in close proximity to Pakistan. Apart from that some three or four defence installations are there in the vicinity of Vadinar port.

"All requisite approvals from the Govt of India for the Essar Oil transaction to proceed are available.Your query pertaining to seeking ministry of home approval for the port has nothing to do with the present Essar-Roseneft-Trafigura-UCP deal.Hope this clarifies the matter adequately," an Essar spokesperson told ET Now.

Besides Rosneft, Russian bank UCP and a Swiss commodity trading firm Trafigura are paying $13 billion to buy a 98 per cent stake in Essar Oil. The deal also includes India's second largest refinery at Vadinar and nearly 3,000 fuel retail outlets, the report added.

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