West Bengal to transfer its shares in Haldia Petrochemicals to TCG

The peace deal between the WB govt and TCG will augur well for HPL

The West Bengal government has decided to transfer its shareholding in favour of Purnendu Chatterjee's TCG, which was also a major shareholder in troubled Haldia Petrochemicals Limited (HPL).

Sources close to the development told PTI that West Bengal Industrial Development Corporation (WBIDC) would transfer its block of around 40% to TCG at a price of Rs 25.10 a piece, a price which was offered by state-owned Indian Oil Corporation (IOC) when the government invited expression of interest (EoI) last year.

Although IOC turned out to be the sole valid bidder in the auction, the transaction fell through as TCG moved the court over the controversial 155 million shares block which WBIDC claimed was owned by it.

Later, IOC withdrew from the transaction process. The PSU had around 9% stake in HPL.

The plant, located at Haldia, had been shut for more than two months with authorities citing a technical snag.

A member of the lenders' consortium to HPL said with both the warring promoters smoking the peace pipe, this would augur well for the future of the company.

"The company had approached the lenders for additional infusion of funds which would now be forthcoming as the ownership issue will get resolved", the banker said.

The company had long been facing a fund crunch and was operating the plant at sub-optimal capacity owing to non-availability of naphtha in the desired amount.