The company is mulling to increase the refinery’s current capacity of 20 million metric ton per annum (MMTPA) to 40MMTPA in the next five years.

The company estimates the upgrade to involve an investment of about INR350bn ($6.17bn).

Essar Oil managing director and chief executive Lalit Kumar Gupta was quoted by The Business Standard as saying that the company has received land and environment clearance.

"But we would put the expansion plans in place sometime down the line, only after we have achieved a reasonable certainty on our leverages and have certain cash flows," Gupta added.

"Right now, we want to optimise the refinery operations further. We have to run it for nine months and we are performing well. Our focus is to sweat the asset now."

The company is also planning to invest about INR400bn ($7bn) to establish an integrated petrochemical project.

Vadinar refinery produces gasoline (petrol) and gas oil (diesel) amongst other higher value, high-quality products conforming to Euro IV and Euro V norms.