Essar Oil today said it has signed an agreement with engineering and construction company Larsen & Toubro (L&T) for supply of high quality bitumen.
As per the Memorandum of Understanding, Essar Oil would supply high quality bitumen from its Vadinar oil refinery in Gujarat to roads L&T is building in the state.
"The initial supply agreement is for a quantity of 15,000 tons over the course of the project and is likely to be extended to other projects in and around the state," the company said in statement.
Essar Oil (EOL) will provide supplies for the Kandla, Mundra and the Samakhaiyali, Gandhidham road Projects in Gujarat. "This cooperation will soon be extended to projects like the Kishangarh, Udaipur, Ahmedabad Road Project, among others," it said.
EOL has existing relationship with L&T under which it supplied about 60,000 tons of high quality bitumen over 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," said S Thangapandian, CEO, Marketing, EOL.
L&T currently has more than 15 road projects under various stages of construction or operations across states like Gujarat, Maharashtra, Tamil Nadu, Karnataka, Haryana, Andhra Pradesh and Rajasthan.
Essar Oil has the capacity to produce over 700,000 tons of bitumen per annum, the statement added.
