Haldia Petrochemicals Ltd (HPL) has acquired for Rs 180 crores, L&T's 51% stake in HPL Cogeneration Ltd. (HPLCL), which supplies power and steam exclusively to HPL. HPL now owns 100% stake in the captive power unit, having management control over the company. HPLCL now becomes a 100% subsidiary of HPL. With this buyout HPL will further boost its profitability through operational synergy between HPL and HPLCL. HPLCL was set up along with HPL in 1998 with an installed capacity of 116 mw.
The acquisition will help HPL meet its energy requirements that are slated to increase as HPL has embarked on a 30% capacity expansion. It will also offer flexibility in fuel usage.