Kpmg Report Will Hold Sway On Ioc & #39;S Role In Haldia

Indian Oil Corporation's (IOC) participation as the fourth partner in the Rs 5,170 crore Haldia Petrochemical project will be finalised after the international consultant KPMG, submits its report on June 30, Union petroleum minister Ram Naik said here.

Following a meeting with the chief minister Buddhadeb Bhattacharrya, state industries minister Nirupam Sen and finance minister Asim Dasgupta in the city yesterday, Naik said that the Centre will examine the report and take a positive stand towards the project. "We will ensure that a decision is taken that makes all of you happy," he observed.

Although the Centre has principally agreed to allow IOC to participate in it, the huge debt burden of the project has been a cause for concern, the minister indicated. The precarious nature of the debt equity ratio of the project will have to be altered as per the recommendation of the consultant.

Huge investments have been made by the West Bengal government, the Tatas and the Chatterjee Group, and Centre would do its best to ensure proper implementation of the prestigious project. There is no dispute over IOC participation.

He, however, stressed that IOC will have to take its own decision on this issue. State chief minister Bhattacharrya said that he was happy with the initiative of the Centre regarding the project and something concrete could be expected by the end of next week.

Later, in presence of Naik and Bhattacharrya, an agreement for the development of a gas pipeline network and marketing of natural gas in the state was signed by Somnath Chatterjee, chairman of West Bengal Industrial Development Corporation (WBIDC) and J K Jain, chairman and managing director of Gas Authority of India Ltd (Gail).

A techno-economic feasibility study will be made to assess the demand potential, the geographical distribution of the demand for gas and the requirement of the pipeline network.

WBIDC has been identified as the nodal state level agency to assist Gail to make natural gas available in eastern region. A joint working group will be set up for the purpose.

Naik stressed that the agreement will usher in new developments in the supply and distribution of natural gas here.

Bhattacharrya said that the success of the project would revive the commercial operation of Greater Calcutta Gas Supply Corporation Ltd.