The West Bengal government is keen on completing transfer of its shares in Haldia Petrochemicals Ltd (HPL), which is facing funds crunch, before March 31 next year.
“The state government wants to complete transfer of its shares in HPL within March 31, 2013” state Industry Minister Partha Chatterjee said here today.
The state government, one of the major promoters of HPL, is keen on exiting after evaluation of its shares, he said.
An auction would then be held and the highest price fetched would be offered to the other principal promoter, Purnendu Chatterjee’s TCG, as first right of refusal.
“If TCG declines to buy the shares at that price then the shares will be given to the highest bidder,” he said.
The state government owns around 39 per cent equity in HPL and TCG owns around 36 per cent.
Sources said banks are not forthcoming in releasing fresh working capital, which the company had sought recently.
The cash-strapped company is producing 160 tonnes of polymers per hour instead of the normal 250 tonnes per hour.
The petrochemicals industry at the moment is facing a situation of over supply. High price of naphtha is adding to the woes of HPL which is dependent on imports, the sources said.