Supreme Court order on Sales Tax Case
January 17 2012: Essar Energy (Dusseldorf: 11224817.DU - news) plc's [LSE: ESSR] subsidiary Essar Oil Limited (BSE: ESSAROIL.BO - news) today made the following announcement to the Bombay Stock Exchange:
Today, the Hon'ble Supreme Court has set aside the judgment of the Gujarat High Court by which Essar Oil was entitled to avail of Sales Tax Deferment Scheme, ie, to pay Sales Tax to the State government in deferred installments. The company has availed of approximately INR 6.4 billion (approximately US$1.25 billion) of Sales Tax benefit which was to be paid in deferred installments.
The company will provide further information in the matter after studying the judgment passed by the Hon'ble Supreme Court.
Notes to editors:
1. This case relates to the Gujarat state's Capital Investment Incentive to Premier (BSE: PREMIER.BO - news) /Prestigious Unit Scheme, 1995-2000.
2. The Supreme Court of India set aside the earlier judgment of the Gujarat High Court that extended time to Essar Oil Limited for the commencement of commercial production of the Vadinar Refinery. Under the original incentive scheme the Vadinar refinery was required to commence commercial production by 15 August 2003 but the actual commencement of commercial production was after this date. Sales tax collected to date totals approximately US$1.25 billion.
3. Essar Oil Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and is a subsidiary of Essar Energy, which owns 87.1 per cent of the shares.
For further information on Essar Energy, please visit www.essarenergy.com
For further information on the Essar Group, please visit www.essar.com
Alternatively, please contact:
Essar Energy
Mark Lidiard, Director of Investor Relations ∓ Communications +44 20 7408 8714 or +44 7554 440421
Andrew Turpin, Head of Media Relations +44 20 7408 8702 or +44 7827 283659
Capital MS∓L
Richard Campbell +44 20 7307 5334 or +44 7775 784 933
Nicholas Bastin +44 20 7255 5117 or +44 7931 500 066
About Essar Energy
Essar Energy (LSE:ESSR) is a world class, low-cost, integrated energy company with an established track record.
Essar Energy, through its subsidiaries, owns one of India's largest private power producers with 1,600MW of installed capacity and projects under construction to expand its capacity to 9,670MW.
Essar Energy, through its subsidiaries, owns one of India's fastest growing private sector oil and gas companies with a diverse portfolio of exploration and production assets. The Vadinar refinery, located in Gujarat, is India's second largest private sector oil refinery with throughput capacity currently being expanded from 14.7 million metric tonnes per annum to 18mmtpa by March 2012, and with further plans to expand to 20mmtpa by September 2012.
About Essar Group
The Essar Group (the "Group") is a multinational conglomerate and a leading player in the sectors of Steel, Oil, Gas, Power, Communications, Shipping, Ports, Logistics, Construction and Minerals (Berlin: HQL.BE - news) . With operations in more than 25 countries across five continents, the Group employs over 70,000 people, with annual revenues of US$17 billion.
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This announcement contains certain forward-looking statements, including statements regarding Group's plans, objectives and performance. Such statements relate to events and depend on circumstances that may occur in the future and are subject to risks, uncertainties and assumptions. Although the Group believes that the expectations reflected in such forward looking statements are reasonable, there are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by such forward looking statements, including, without limitation, the enactment of legislation or regulation that may impose costs or restrict activities; the re-negotiation of contracts or licences; fluctuations in demand and pricing in the Oil and Gas, Power and Energy (NYSEArca: JJE - news) industries; fluctuations in exchange controls; changes in government policy and taxations; industrial disputes; war and terrorism. Further information on the significant risks and uncertainties associated with the Group's business is set out in the Prospectus published on 4 May 2010. These forward-looking statements speak only as at the date of this document. The Group undertakes no obligation to update any forward looking statements whether as a result of new information, future events or otherwise, except to the extent legally required.
These statements (and all other forward-looking statements contained in this document) are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Group's control, are difficult to predict and could cause actual results to differ materially from those expressed or implied or forecast in the forward-looking statements.
This announcement does not constitute, or form part of, an offer or any solicitation of an offer for securities in any jurisdiction, or an invitation or inducement to invest in the Group or any other entity and should not be relied upon in any way in connection with any investment decisions.
