Haldia Petrochemicals (HPL) has managed to secure Rs 150 crore in fresh loans from public sector banks. The April-June quarter that was its worst quarter ever, as HPL suffered loss of Rs 400 crore as it could operate at 50% capacity because of a funds crunch. The State Bank of India, IDBI and Allahabad Bank have provided extra working capital loan in a bid to aid the company to buy more feedstock naphtha, helping prop up run rates to 70%.
The company has now started making a small profit at the operating level. The buoyancy in the petrochemical business has helped the company, too. Falling naphtha price improved profitability, giving the banks the confidence to lend to HPL. No default on part of HPL for repayment of its interest or principal despite being under severe financial strain also helped its case.