TCG meets state to settle HPL spat

A taskforce has been proposed to handle all disputed points

Purnendu Chatterjee of The Chatterjee Group (TCG), the private sector promoter of Haldia Petrochemicals Ltd (HPL) who has been ousted from the management of the company by the government of West Bengal (GoWB) recently, today met Nirupam Sen, industries minister, GoWB, to set in motion the process of amicable settlement of the confrontation between the two promoters of HPL.

TCG has reportedly proposed the constitution of a taskforce comprising nominees of GoWB and TCG for amicable settlement of the stand-off in HPL over the induction of Indian Oil Corporation (IOC) into the company, which led TCG to sue GoWB before the Company Law Board (CLB).

Sources said TCG proposed a taskforce that would be empowered to deal with all issues of conflict between the two sides, and also made it clear that its intention was to buy out GoWB in HPL. The state government would now respond to Chatterjee's proposal formally after referring it to the state Cabinet if necessary.

TCG is expected to convey its terms for buying out GoWB in HPL to the taskforce if the state government accepted the idea.

State government sources said it had an open mind on an amicable settlement with TCG and was not opposed to it. The details of the task force, like its number of members and their names, were yet to be finalised.

"An amicable settlement is possible but TCG should first come up with a specific proposal and also withdraw the case before CLB", said a top-level source. Purnendu Chatterjee, when contacted by Business Standard, refused to speak on the issue. The task force approach was also expected to help in involving institutional players in the settlement process.

The institutions as lenders to HPL have been kept out of the process of induction of IOC and in other shareholder related issues, and this could cause problems at a later date.

It would have been easier if a designated minister could sit across the table and settle the issues, but that is not possible in a government set-up, said a source.