West Bengal Govt to offer the post of Haldia Petrochem chairman Purnendu Chatterjee

07-Mar-14

In a move that may resolve the long dispute over Haldia Petrochemicals Ltd (HPL), the West Bengal government, plans to offer the post of chairman to The Chatterjee Group (TCG) chief Purnendu Chatterjee. Bankers of HPL too have endorsed the idea and are pitching hard for the chairmanship of Chatterjee, as per Business Standard. According to a senior banker, who is part of the lenders’ consortium on HPL, the state government has been informing the lenders about meetings with TCG and the government over the past couple of months. During a crucial meeting on Wednesday in Mumbai, the government has proposed the idea of giving the post of chairman to Chatterjee. “We are backing this idea strongly as this would lead to a concrete solution for the company, which is in dire need of funds. However, we would take a call on further lending to HPL after they (promoters) take a final call on the matter,” the banker said, adding that this would be the top agenda on the next board meeting of HPL on March 10. SBI, IDBI and PNB are the lead bankers for HPL. But things would not be as smooth as they might appear to be. PSU major, IOC, which emerged as the sole valid bidder for the Bengal government’s 40% stake on the sale, might call off its bid if the TCG chief is given the mandate of chairman in HPL. After submission of Expressions of Interest by the sector majors in reply to the government’s invite for the stake sale, IOC had emerged as the sole valid bidder for Bengal’s stake earlier this year and offered to buy the shares at Rs 25.10 each. So far, the government has not been able to close the sale due to legal battles with key private promoter TCG. In the past, Chatterjee has said that he would infuse about Rs 500 crore if he was given the control over the management of the ailing petrochem firm. The company, at present, does not have a chairman after former state industries minister Partha Chatterjee resigned from the industry department portfolio.