The Hindu Business Line : Haldia Petro: IOC awaits end to Govt-Chatterjee group tussle

Kolkata, Sept. 25 The recent verdict by the Calcutta High Court notwithstanding, IndianOil plans to play a wait-and-watch game with regard to Haldia Petrochemicals.

The Calcutta High Court recently rejected The Chatterjee Group’s opposition in regard to awarding strategic 8.19 per cent stake to IOC. The ruling also made it apparent that the State Government was in the driving seat of the project with a majority 51.67 stake in paid-up capital. The West Bengal Government was instrumental in roping in IOC in HPL.

“We are not making any long-term commitment in HPL at this juncture, as we do not see an end to the court room battle,” a senior IOC official said. “Our estimation suggests that TCG will now move to a higher Court. We are waiting for an end to the tussle between the State Government and TCG over the control of the company, before making any commitment,” he said.

Court room battle

It may be mentioned that allotment of shares to IOC has led to the court room battle between the two major promoters of HPL.

IOC’s entry was expected to help HPL in getting assured supply of feedstock (naphtha) from the IndianOil refinery at Haldia. Similarly, on IOC’s part, control over HPL was perfectly in tune with its ambitions to emerge as a petrochemical major.

TCG group holds 37.68 per cent through three entities.

The equity structure will change, once HPL implements the HC ruling favouring fresh issue of shares worth Rs 127 crore to a consortium of 25 lenders led by IDBI. The issue was part of the debt-restructuring package previously approved by the lenders.

Related Stories:
TCG not to sell stake in HPL to Bengal Govt
Bengal, Chatterjee Group yet to find common platform — Induction of IOC as an equity partner in Haldia Petrochemicals

More Stories on : Corporate Disputes | Courts/Legal Issues | Petrochemicals

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