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Kolkata , Dec. 30

A ROADMAP charting out the course for bringing Indian Oil Corporation's (IOC) investment to Haldia Petrochemicals Ltd and allied projects will be evolved jointly by the oil major and the Government of West Bengal, one of HPL's principal promoters.

Stating this after a meeting with the IOC Director (Planning and Business Development), Mr N.K. Nayyar, the Principal Secretary, Dr Sabaysachi Sen, said that this would be worked out over the next few meetings.

He said that copies of IOC's Rs 5,700-crore investment proposal has been sent to all the promoters — the Tatas and Mr Purnendu Chatterjee. "Mr Chatterjee is also enthusiastic about the proposal," Dr Sen said. Mr Nayyar was unwilling to give details of the meeting beyond saying that it was positive.

However, it is now clear that IOC can now invest in HPL's equity only after the ongoing CDR (corporate debt restructuring) process was completed and a clearer picture of HPL's balance sheet emerged. Dr Sen was optimistic that this would be completed by the first week of January.

He said that IOC was keen on investing in various other projects in Haldia, as part of its total Rs 5,700-crore proposal and these investments could start soon after the completion of the roadmap and the feasibility studies on these proposals. Since IOC had already done a due diligence on HPL during its earlier investment attempt, no fresh studies would be needed in case of HPL. "They would need studies for the other projects like the condensate refinery, styrene plant and the synthetic rubber plant."

They will build up their stake in HPL gradually as they see this entire investment as one, that has synergy with their existing line of business, according to Dr Sen.

He indicated that both GAIL (which has already submitted a proposal to invest in HPL) and IOC could participate in HPL's equity. To a question as to whether HPL will then become a government company, he said: "It might."

He also said that in the long-term the State Government would like to get out of HPL and invest in other projects. After the debt restructuring, banks and FIs were likely to become HPL stakeholders.

As for the debt recast plan, Dr Sen said that most of the discussion had been completed "satisfactorily."

On a public offer, he said that this would depend on HPL's capital requirement after the recast.

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