Haldia Petrochem Board of Directors likely to approve fund infusion

12-Mar-14

HPL Ltd’s board of directors have decided to approve fund infusion in the company before the end of this month, to keep the company from having to knock the doors of the Board for Industrial and Financial Reconstruction (BIFR). The state government is the principal promoter of the ailing company. Former HPL chairman Chatterjee has emerged as a contender for the post again, that currently is unoccupied. Sources said lenders might agree to infusing more funds into HPL if, among other things, the board were to make Chatterjee the chairman. The primary issue for HPL is to have funds infused so that it does not become an NPA (non-performing asset or a loan defaulter) in bankers’ accounts as well. HPL might turn a sick unit, with its net worth eroding continually owing to a shortage of naphtha, needed to run the plant to full capacity.