Essar Oil, on Monday, entered into a memorandum of understanding (MoU) with engineering and construction giant, Larsen & Toubro (L&T) for supply of high quality bitumen from its Vadinar refinery in Gujarat.
A statement issued here said, Essar Oil would supply high quality bitumen from its Vadinar refinery for roads L&T was building in the State.
“The initial supply agreement is for a quantity of 15,000 tonnes over the course of the project and is likely to be extended to other projects in and around the State,'' the statement said.
Essar Oil will provide supplies for the Kandla-Mundra and the Samakhaiyali-Gandhidham road projects. This co-operation is likely to be extended to projects such as the Kishangarh-Udaipur-Ahmedabad road project.
Essar Oil has existing relationship with L&T under which it supplied about 60,000 tonnes of high quality bitumen in the last 18 months for L&T's various road projects.
“Essar Oil is fully geared to meet the supply for increased demand of high-quality bitumen for road construction,'' S. Thangapandian, CEO (Marketing), said.
The company has the capacity to produce over 700,000 tonnes of bitumen annually.
