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Mukesh Ambani’s Reliance Industries Ltd (RIL) and centrally-owned Indian Oil Corporation (IOC) have emerged as the final bidders for the state government’s 40 per cent stake in Haldia Petrochemicals Ltd (HPL).
This was preceded by a lot of boardroom drama, likely to lead the stake sale process into another tussle, on a day it was supposed to announce the highest bidder.
After garnering an Expression of Interest (EoI) from major companies in the sector, only these two gave price bids on Monday. The deadline was 1 pm and only IOC had given a bid till then. In a surprise move, the deadline was then extended till 3 pm, whereupon RIL gave one.
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This is being seen as a move to facilitate Ambani. The group of ministers (GoM) entrusted with authority on the issue had met on Monday before closing of the deadline and then went to meet Chief Minister Mamata Banerjee. Then came the decision to extend the deadline.
According to a person with direct knowledge of the matter, present at the meeting, this has annoyed IOC. “IOC was the sole bidder till afternoon but the government decided to extend it and only then did RIL file its bid,” the person said.
Confirmed an IOC source: “We were the first and only one to bid. We don't see a reason why it was extended specially for one company.”
RIL has been eying a stake in HPL for a long while and Ambani recently met Banerjee in Mumbai to discuss the stake sale.
On the other hand, IOC already has close to nine per cent stake in the company; it also has a refinery very near to the HPL plant in Haldia.
HPL chairman and state industries minister Partha Chatterjee ruled any special comfort being given to RIL, adding the final bids would be announced in another week.
“We are transparent and continue to remain so. We would open the bid in another six to seven days,” he added on Monday, after a marathon meeting.
However, after drawing big names such as Cairn India, Oil and Natural gas Corp and Essar Oil, it was seen as a dampener when only two companies finally bid. IOC, GAIL, Essar Oil, ONGC, RIL and Cairn India had given EoIs in June for participating in the sale.
The Purnendu Chatterjee-led TCG (The Chatterjee Group) still has the right of first refusal over the state's stake and will get a month's time to match the highest bidder. However, Monday’s developments have opened the possibility of another dissruption possibly legal, in the sale process.
