Haldia Petrochem seeks Rs 1bn loan from West Bengal govt

16 Apr '13

1 min read

Financially troubled petrochemical major Haldia Petrochemicals (HPL) has applied for Rs. 1 billion loan from the West Bengal state government, Business Line reported quoting PTI.

Speaking on the sidelines of his meeting with Japanese Ambassador Takeshi Yagi, HPL Chairman and Industry Minister Parth Chatterjee said the proposal to extend Rs. 1 billion assistance to HPL has been approved by the Group of Ministers, who have assured to take the matter further when Finance Minister Amit Mitra resumes charge.

The company, having the state-run nodal agency - The West Bengal Industry Development Corporation (WBIDC) - as its co-promoter, is enduring substantial shortage of working capital and has defaulted in loan repayments.

At present, lenders are not willing to extend any further funds to the ailing firm, until there is new equity infusion by promoters.

Once approved, the loan would be extended to HPL through WBIDC.

Meanwhile, Delloite, which has been hired as a transaction adviser, is yet to submit its report regarding disinvestment in the firm as sought by the state government.

Fibre2fashion News Desk - India

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