Institutional sources told Business Standard that the Haldia Petrochemicals management had proposed a drastic reduction in interest rates to 7-8 per cent and had agreed to a capital infusion of around Rs 500 crore in addition to roping in a strategic partner.
They added a committee comprising representatives from Industrial Development Bank of India (IDBI), IFCI Ltd, State Bank of India, ICICI Bank and Allahabad Bank had initiated talks with the HPL management for a solution.
The company had been referred to the corporate debt restructuring cell consisting of bank and FI representatives. They executives said the lenders were in favour of a package similar to the debt restructuring of steel companies earlier this year and were going to seek writing down of equity while offering loans at lower interest rates.
They, however, added that it was not possible to offer loans at rates given to the steel or the textiles sector in the absence of access to ECB. The Centre recently amended its ECB policy and stipulated that banks and FIs can only use the ECB route to fund the restructuring of steel and textiles companies as a commitment had already been given.
The sources said the lenders were still of the opinion that the company required higher fund infusion
