HPL MD Sumantra Chowdhury gets 3 months' extension

Haldia Petrochemicals Ltd (HPL) managing director Sumantra Chowdhury has got a three- month extension to continue in his current capacity in the company.

The move is being seen as a safe move by the West Bengal government, which has put its share up for sale in eastern India's biggest petrochemical company. The share auction process is expected to be completed by September.

HPL MD Sumantra Chowdhury confirmed that he had got an extension till September.

The state government had decided not to extend his term, as the Chief Minister was not happy with his performance. However, after the state government decided to invite EoI (expression of Interest) for its stake sale which got a good response from private sector biggies to PSU giants, HPL chairman Partha Chatterjee wanted to keep the existing management intact.    

Chowdhury, former state secretary, was appointed as MD of HPL in a boardroom coup of sorts last year in June when Partha S Bhattacharyya resigned from the company.

In a supplementary move to the HPL MD's reappointment, company CFO D S Chakrabarty was also recently reappointed for the next three months. Chakrabarty had resigned earlier citing personal reasons.   

After the last board meeting, HPL chairman Partha Chatterjee had said the CFO was integral part of the stake sale process and thus he wanted the same tam to remain intact.

A top official of WBIDC (West Bengal Industrial Development Corporation), which holds around a 40% stake in HPL, also said the state government's intent was to be done with the stake sale process. “State wants to exit from this venture, so once state exists the project, whoever new comes in will decide if any top level management change is required,” the official said, who did not want to be named.

RIL, Essar, Cairn India, IOC, GAIL India and ONGC have submitted their EoIs to participate in auction process. Purnendu Chatterjee led The Chatterjee Group (TCG) will have first right of refusal.