All assets, including the land belonging to Haldia Petrochemical Ltd, will be mortgaged to the Industrial Development Bank of India (IDBI). This will be done as a pre-condition for being given the deferred payment guarantee against the suppliers' credit.
The finer details of the mortgage transfer were ironed out in the board meeting of Haldia Petrochemical Ltd held at Calcutta yesterday.
The entire mortgage process would spread over the whole of September and will be scrutinised at the Industrial Development Bank of India board meeting in Mumbai.
State government sources expect the zero date, the day the Japanese Toyo Corporation begins work on the naphtha cracker plant, will be set around early October. The mortgaging process has already begun.
The board also dwelt on the subsequent shareholding pattern in the company as it is believed that once the project goes on stream the state government is likely to dilute its stake in the company, currently around 45 per cent of the promoters'equity.
The Industrial Development Bank of India has also asked for a clearer picture on the subject of future representation of the equityholders in the management of the affairs of the company.
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Besides, the lead financial institution has also asked for details of financing the Rs 400 crore naphtha-based power plant which is envisaged as part of the project.
Haldia Petrochemical Ltd is believed to have shortlisted six Indian companies and is in negotiations with them to set up the power plant on a build-own- operate basis.
Sources say Industrial Development Bank of India wants more transparency with regard to this power plant before it forwards its guarantee.
Evidently, payment of half the promoters' equity of Rs 505 crore was not the only pre-condition to be fulfilled by the promoters before they could get the guarantee of Rs 520 crore from the consortium of financial institutions against the suppliers' credit of Rs 453 crore from the Exim Bank of Japan.
Sources say that the fulfillment of pre-conditions such as mortgage of assets is a routine procedural requirement.