Haldia Petrochem MD U K Basu might resign

Post of chairman at HPL has been vacant after Partha Chatterjee resigned in December 2013 following a reshuffle in Bengal cabinet

Haldia Petrochemicals’ managing director, U K Basu, has expressed a desire to resign, following the West Bengal government’s decision to resolve the long battle over management control of the company.

“This is primarily because the new management, led by TCG (The Chatterjee Group), might not continue with the existing management,” said a source. An official spokesperson of HPL refused to comment.

Business Standard had reported in March that both key promoters, TCG and the state government, had decided to resolve their long tussle. The government, after accepting a lone valid bid from Indian Oil Corporation for selling its stake (41 per cent) in HPL, did and said nothing more on the sale. IOC is learnt to have since diluted its interest in eastern India’s biggest petrochemical company.

IOC owned nine per cent in HPL and acquiring the state government’s stake would have raised its holding to 50 per cent.

IOC had offered to buy the shares at Rs 25.10 each. The government has now decided to sell that stake to TCG for the same price.  The post of chairman at HPL has been vacant after Partha Chatterjee resigned in December 2013, following a reshuffle in the Bengal Cabinet.

Sources said giving Chatterjee the post of chairman was vital for fund infusion.

“This was the key condition (Chatterjee’s appointment as HPL chairman) for financial restructuring of the company. Due to the code of conduct ahead of the coming polls, the announcement was being kept on hold,” said a source.

At a meeting with the promoters, bankers had favoured the appointment of Chatterjee as HPL chairman, as this might prevent the company from approaching the Board for Industrial and Financial Reconstruction.