Hpl Expenses Exceed Income By Rs 1068 Crore

Bengal's dream project Haldia Petrochemicals Ltd's collective expenses has exceeded net income from trial run operations by Rs 1,068.91 crore in the last financial year.

Although the company achieved a good margin on conversion of raw materials into finished products at 15 per cent, but financial charges were a drag in the same period which witnessed six months of trial run from October 1, 2000. The conversion of raw material into finished product gave HPL Rs 165.82 crore margin.

During this year, HPL's collective expenses (gross expenses, payment against capital jobs and trial run/start-up expenses combined) stood at Rs 2283.55 crore as on March 31, 2001. At the same period, collective income from start-up operation was 1212.82 crore, which included net sales from start up activities, sales tax remission and accrued duty benefits pertaining to export.

HPL received Rs 1.80 crore from interest and other income, which left it with a Rs 1068.91 crore of shortfall during this period. HPL began commercial production on August 1, 2001 after 10 months of protracted trial run.

During this period pre-operative expenses stood at Rs 851.89 crore, including Rs 477.48 crore interest on term loans and other interest of Rs 45.92 crore. Interest on term loans was significantly lower than the Rs 1001.61 crore charged in the previous fiscal.

The company also incurred exchange loss of Rs 24.22 crore during this year. Other significant expenses were license fee for technologies and consultancy fee of Rs 97.12 crore and Rs 55.95 crore respectively.

HPL made payments of Rs 76.85 crore against capital jobs. Furthermore, it spent Rs 1354.8024 crore as trial run/start up expenses. This includes raw material cost of Rs 1047 crore for trial run of six months. On the income side, HPL earned net sales of Rs 1201.74 crore from start up activities.