State Govt interested to hive off stake in Haldia Petrochem- ONGC interested to acquire share

11-Jun-12

The West Bengal state government has expressed intention to offload its 43% stake in the joint sector company, as per Press Trust of India. State-owned ONGC is interested in acquiring West Bengal government's stake in ailing Haldia Petrochemicals Ltd (HPL). "We have expressed the desire to take controlling stake in Haldia Petrochemical through our subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL)," as per a company official. The company has sought an audience with West Bengal Chief Minister Mamata Banerjee to make a presentation on its HPL plans. Expansion is underway at MRPL- to 21 mln tons from 15 mln tons. As a result the company will have additional naphtha that can be used as feedstock in the petrochemical plant. HPL, whose losses over the past years have eroded nearly half of its networth, currently imports bulk of its naphtha requirements.