The Chatterjee Group has refused to sell its stake in Haldia Petrochemicals to the West Bengal Government. This option was suggested by the Company Law Board to resolve the entanglement over control of HPL.
The West Bengal government had proposed to buy or sell HPL stake at Rs 28.80 per share, implying that TCG would have to make a payment of over Rs 2000 crore for buying more than 40% stake held by the state government. The comment comes 3 days after the West Bengal government submitted a proposal before the CLB, offering to buy TCG shares in HPL or sell its own shares to the company owned by NRI industrialist Purnendu Chatterjee. With the upswing in petrochemicals, a sell out does not appeal to TCG. However, TCG is not decided whether it will buy out the state government stake in HPL.
Once again, the matter now looks poised to go back to CLB for a decision. The origin of the dispute was when TCG opposed the WB government decided to sell 7.5% stake of HPL to Indian Oil Corporation for Rs 150 crore.
05-Apr-06 
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