Bengal govt not to alter HPL share pattern: HC

There is no injunction on balance 520 million shares offered by the government

The Calcutta High Court today restrained the West Bengal government from altering the shareholding pattern in Haldia Petrochemicals Ltd (HPL) to the extent of disputed 155 million shares.

HPL chairman and state industries minister Partha Chatterjee said the high court ordered a stay on 155 million shares only and this would not stall the stake sale process of West Bengal Industrial Development Corporation (WBIDC). The matter is expected to be heard again on June 10. There is no injunction on the remaining  520 million shares offered by the government.

The West Bengal government has around 40 per cent stake in HPL via WBIDC, and it had come out with an expression of interest inviting bidders to buy its shares in the ailing petrochemical company.

An official of The Chatterjee Group (TCG) said the implications of the judgment were not clear, but even a stay on 155 million shares could put a break on the state’s exit plan from HPL. TCG is one of the principal promoters of HPL.

Meanwhile, after a meeting with the lenders today, the state government said it would bring Rs 100 crore into HPL to provide confidence to the bankers to extend loans to the ailing company.

“We will have a meeting of WBIDC board members on May 23 and a Rs 100 crore loan would be given to WBIDC by the state government. Once the state government exits HPL, whoever comes and acquires the state’s stake will have to repay the Rs 100 crore loan to WBIDC. Then, WBIDC will give it back to the state government,” said Chatterjee.

To increase operational capacity of the plant, HPL needs immediate infusion of funds. “Lenders have been asking the promoters to bring in funds. So, we are bringing Rs 100 crore and lenders today gave a strong signal that they will extend help,” the HPL chairman said.

The company has been seeking working capital loan to the extent of around Rs 800 crore for the lenders. SBI, IDBI Bank, PNB, are the lead bankers.