Storing Journal Data on Primary Site

Hi Arvind – with basic Zerto licensing, each VM can be replicated 1 time and that can either be within the same site or to a peer site. With premium licensing, each VM can be replicated up to 3 times to 3 unique site (including a combination of local replication within the same site and separate replication up to 2 other different recovery sites).

So what I understand is that if I replicate the instance to local site itself , I can make use of the journal history maintained at the local site.

Yes, the site hosting the VM will also be the recovery site for this VPG.

The same VM can be replicated to two different sites and I can maintain a journal there as well ?

Yes – each VPG will have a single recovery site (one local, one to the other different site) with its own unique SLA settings and journal history.

Also what will be the performance impact on VM with replication happening at 3 sites ?

None aside from the additional resource usage (network traffic for 3 independent replications, recovery volume & journal storage history usage, etc).

Also if VMware stack is deployed at primary site , will the local replication use the same VC or additional VC is required?

If the VM is hosted on VMW then the local replication VPG (AKA replicate to self selected for this VPG) will allow you to replicate that VM to resources available in that same VMW VC instance (or, in Zerto terms, site).
Edited for formatting