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Haldia Petrochemicals set to get Rs 100 cr on May 23, HPL stake sale on track

KOLKATA: The West Bengal government today said that it would give Rs 100 crore to ailing Haldia Petrochemicals (HPL) for creating confidence among bankers. 

"We will have a meeting of WBIDC board members on May 23 and Rs 100 crore loan would be given to WBIDC by the state government to infuse into the company," Industry Minister 
Partha Chatterjee said after meeting lenders. 

He said the loan was being provided by the state government on condition that once it exited HPL, whichever entity acquired its stake would have to repay the Rs 100 crore loan to WBIDC. 

Chatterjee said lenders assured to provide funds, but there was no clarity about the amount of their credit. 

Lenders have been asking the promoters to bring in funds to enable them to offer further credit and loans. 

IDBI BankBSE -0.55 %, PNB, are the main lenders for the biggest petrochemical company in eastern India. 

Meanwhile, Chatterjee claimed that court cases would not derail the divestment process of
HPL and there would be no fresh expression of interest. 

He said state there was no hurdle in going ahead with sale of 520 million shares against 675 million shares proposed by the West Bengal government. 

The state's stake comes to 39.99 per cent in HPL after considering the 155 million shares which is in question and being contested by lead promoter TCG group. 

Chatterjee claimed that if the issue of 155 million shares was not settled by July 15, then the government would be able to sell even these shares. 

TCG officials when contacted declined to comment on the court observations.