Stipulation on TCG by West Bengal Government for HPL

17-May-05

The 43% held by the West Bengal Government can now be transferred in favour of Purnendu Chatterjee, if he agrees to the conditions specified by the former. In this case, TCG would then hold 86% in HPL. Though neither the terms and conditions of sale, nor the stipulated time period have been revealed, the price at which the Government wants to sell, will form a crucial factor. The negotiations underway between the two parties will definitely spell out the same. Participation by the West Bengal Government in financing the Basell acquisition will depend upon the outcome of these talks If the shares were transferred to TCG, the Government would have no role to play in HPL's role in financing the Basell. Meanwhile, lenders to HPL had given the go ahead to join the TCG led consortium which has acquired Basell's assets at US$5.7 billion. If the HPL board clears its entry into the consortium, HPL will have to shell out nearly Rs 1,500 crore for which it would raise debt, both overseas and domestic.