Haldia’s Supermax project viable despite increased cost

29-Sep-09

Haldia Petrochem’s Supermax project comprises of augmentation of naphtha cracking capacity from 520,000 tons to 675,000 tpa. HPL will see a 45 day shutdown starting in October to facilitate synchronising of the project with the existing operations. The cost of Haldia’s expansion project increased from the initial outlay of Rs 675 cr, to over Rs 1,000 cr. Mott Macdonald was appointed by HPL at the behest of the lending consortium led by IDBI to look into Supermax's viability since the company had sought additional debt funding to finance the project. As per the findings, lenders have agreed to fund the expansion plan that has suffered cost and time overrun, as Supermax is still considered viable.