Haldia Petrochem MD U K Basu resigns

Resignation follows differences with private promoter TCG group, say sources

Uttam Kumar Basu, managing director of the ailing Haldia Petrochemicals Ltd (HPL), has resigned with immediate effect. Basu, whose term was to end on December 31 this year, gave his resignation to the HPL board which accepted it in a meeting on Thursday. The board meeting was chaired by West Bengal commerce and industries minister Amit Mitra, who is also the chairman of HPL.

Confirming the news, Basu said: “The board has taken note of my resignation, which I had submitted on December 9.” He refused to comment on the reasons for his decision to quit. According to sources, the resignation is a result of the Purnendu Chatterjee-led The Chatterjee group wresting control of the management after the state government, represented by West Bengal Industrial Development Corporation, decided to offload its 41 per cent stake in HPL in September this year.

"He (Basu) will not be comfortable to work with Chatterjee, as they had differences earlier. Chatterjee will now want a person of his own choice," said a source.

Basu joined HPL as managing director in November 2013. Prior to joining HPL, Basu had served as the managing director of Mangalore Refinery and Petrochemicals.

The development comes at a time when the future of HPL looks bleak as Chatterjee hasn't paid the first instalment of the Rs 1,305 crore he has agreed to pay for 520 million shares of HPL, at Rs 25.10 apiece. According to the deal, the share-transfer agreement would become valid after Chatterjee pays half the amount in the first instalment.

The plant remains closed since July 7 this year due to failure of the naptha-cracker unit - the main unit of the plant. The condition worsened after the principal lenders refused to infuse fresh funds, citing difference between the two promoters - TCG and WBIDC - over the non-payment of the first instalment. The plant needs Rs 1,000 crore for buying naptha, the main feedstock of the plant.

When contacted, an official spokesperson of the company refused to comment on the resignation of Basu.