The Hindu Business Line : Delay over finalising strategic partner for Haldia Petro

GAIL (India) Ltd is still awaiting the approval of the corporate debt restructuring (CDR) cell on Haldia Petrochemicals - spearheaded by the financial institutions - in regard to their proposed investment of Rs 150 crore in HPL.

The company is also awaiting the approval of the Union Ministry of Petroleum and Natural Gas in this regard.

GAIL was earlier advised by the West Bengal Government, one of the promoters of HPL, to invest Rs 150 crore as equity for a over seven per cent stake (in HPL) by August 31.

The deadline, however, could not be met.

In response to a questionnaire sent by Business Line, GAIL said: "On August 12, the West Bengal Government communicated to us underlining the requirement of a capital infusion of Rs 150 crore by GAIL.

"As an immediate response we had informed the State Government that such revised payments (in view of the previous requirement of Rs 332 crore) needs to be conveyed by HPL.

"It was also conveyed that the consent of CDR group would be required in the context of the previously agreed financial restructuring plan for HPL. As of now, we do not know the CDR group's position on the revised requirement of Rs 150 crore," the company said.

In a communication to the West Bengal Government, GAIL had also stated their inability to seek board approval on the investment proposals without having "full clarity on the pending issues".

GAIL officials, however, said that "there is no deadlock" over the proposed investment in HPL.

"We are still waiting for the necessary clarifications on the part of CDR cell," the company said, adding that if these were available in time, the proposal could be forwarded for approval of the board scheduled to meet later this month.

On whether the Union Petroleum Ministry was agreeable to GAIL's proposed investment in HPL, the company sources said that though the Ministry had till date reserved its views, it did not disagree with the proposal either.

Though he did not disclose the nitty-gritty of the issues pending clarification, Mr Sabyasachi Sen, Principal Secretary, Ministry of Commerce and Industries, West Bengal Government, admitted that there had been delay in finalising the strategic partner for HPL.

He, however, said, "Things could be sorted out through discussions and the time limit for GAIL's proposed investment may also be extended."

Mr Sen added that the West Bengal Government was open to any choice, which the Union Petroleum Ministry may make on the issue, specifically between Indian Oil and GAIL as far as the strategic partner-issue in HPL was concerned.

He clarified that the State Government had not entered into any discussions with Indian Oil on the issue during the post-CDR period.

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