Energy focused conglomerate Mercator's subsidiary has received a mining lease from the Gujarat government for exploiting oil discoveries for a period of 20 years.
Shalabh Mittal, managing director and CEO of Mercator Lines spoke to CNBC-TV18 on mining lease and the project pipeline.
Mittal said the mining lease is all set for production now.
“As EBITDA contribution this year, we expect about Rs 70 crore from this and on full year basis because scale up will happen slowly, on full year basis for March ’20 it would end up adding about Rs 200-220 crore to our EBITDA,” he added.
Talking about the production, he said, “We plan to scale operation up to 5,500 barrel a day, so that will be the production on daily basis.”
He further said that we are on track to meet the guidance for FY19.
The company current holds a debt of around Rs 1,700 crore in its books.