Haldia Petro gets more time for capital infusion

The corporate debt restructuring (CDR) forum, led by the Industrial Development Bank of India (IDBI), has decided to grant an extension to Haldia Petrochemicals Ltd (HPL) for bringing in fresh capital to the company, raising hope of an effective implementation of the debt-cum-equity recast process.

"We have decided to give an extension to HPL," said M Damodaran, chairman of IDBI. GAIL (India) Ltd, which intended to invest Rs 332 crore in HPL as part of the restructuring package, had sought three months more to bring in the money.

In a letter written to the CDR forum in late March, the public sector major had said it would need at least three months to get the approval of the Public Investment Board (PIB) and the Cabinet Committee on Economic Affairs (CCEA).

According to the package offered by the CDR cell on January 22 this year, GAIL had to invest Rs 200 crore by March 31 and another Rs 132 crore by April 30.

GAIL was unable to meet the deadline as the company management became busy with its public issue. Going forward, the forthcoming general election may also delay the clearance from the PIB and CCEA.

Sabyasachi Sen, principal secretary of ministry of industry and commerce, West Bengal government, said the existing promoters of HPL, the West Bengal government, The Chatterjee Group (TCG) and Tata Sons, have not sought any extension of the deadline.