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IndianOil sets its sights on Haldia Petro

The company already has 8.89% stake in HPL by virtue of a Rs 150-cr investment made in 2004

BS Reporters  |  Kolkata 

The buzz of Corporation (IOC) being interested in Petrochemicals Ltd (HPL) has been there for quite some time, but today IOC Chairman officially indicated his interest in the eastern India’s biggest petrochemical company.

IndianOil already has a 8.89 per cent stake in by virtue of a Rs 150-crore investment made in 2004.

The West Bengal government, which holds close to 40 per cent stake in HPL, has started its share sale drill and has appointed to execute the divestment plan and a valuation process is going on. is expected to file its report by March.

“IndianOil has its refinery, which has been supplying naptha to There is some synergy. And it is for everybody to see whether this synergy suits or not. We think it might suit. We will take a decision at an appropriate time,” said Butola.

It may be noted that a team from IOC had met chairman Partha Chaterjee in May last year.

However, TCG chief, Purnendu Chatterjee , a majority shareholder in HPL, will have the first right of refusal once the final auction price is decided.

Meanwhile, the lead bankers have denied the promoters’ request to extend any further capital to the ailing petrochem firm.

HPL is suffering Rs 50-60 crore of cash loss every month and it is in desperate need for non-interest bearing funds of Rs 1,000 crore. HPL has defaulted on working capital loan. Company chairman, who is also the state industries minister, has now asked the state government to infuse Rs 100 crore at the earliest.

First Published: Fri, February 15 2013. 00:37 IST