HPL eyes two projects to beat financial crisis

October 26th, 2011 - 8:28 pm ICT by IANS  

Kolkata, Oct 26 (IANS) Haldia Petrochemicals Ltd (HPL), the second largest maker of polyethylene in India, is giving top priority to producing Butiene-1 and Styrene-Butadiene-Rubber (SBR) to come out of its financial crisis, an official said Wednesday.

The cash-starved company, co-promoted by the West Bengal government, may float a request for a proposal from global firms for project Butiene-1 by Friday, the official said.

HPL managing director Partha S. Bhattacharyya told IANS that the total investment for the project will be Rs.200 crore.

?The entire investment will be made by us? it may take place through bank lending. We will also supply the raw material for producing Butiene-1,? he informed.

He said the partner firm, with which HPL will be tying up, will provide technological know how to produce the chemical.

He said that the HPL will make a profit of about Rs.80 crore annually from the project. ?The investment will be paid back within two-and-half years.?

On the SBR project, Bhattacharyya said HPL may form a joint venture with a global major to produce synthetic rubber.

He said the SBR plant would require an investment of Rs.1,000 crore.

?We will provide the land for the plant within the complex and also the raw material butadiene,? he said. “Six to seven months will be required to start the project.”

HPL is a modern naphtha-based petrochemical complex located 125 km from Kolkata, at Haldia in West Bengal?s East Midnapore district.

Bhattacharyya said the two projects would take off after the promoters of HPL sort out their differences.

The Supreme Court recently dismissed the petition filed by The Chatterjee Group (TCG) against the decision of the Calcutta High Court allowing the West Bengal government to retain 155 million shares in HPL.

The Purnendu Chatterjee-led TCG had challenged the high court verdict that set aside an order of the Company Law Board directing the state government to exit from HPL by selling its stake to the joint venture partner TCG.

The ownership battle between the principal shareholders of HPL - the West Bengal government and Purnendu Chatterjee - dates back to 2005 when the Left Front was in power.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |