Haldia: Tata backs Bengal

Ratan Tata today stood by the West Bengal government in the controversial transfer shares of Haldia Petrochemicals Ltd (HPL) to Indian Oil Corporation (IOC).

Responding to shareholders' query at Tata Tea annual general meeting (AGM), Tata said, he fully supported the move on sale of shares to IOC.

"It is the best thing that could have happened to Haldia Petrochemicals. It would strengthen the company" he said.

The Tata group still holds a token three per cent stake in HPL, though Ratan Tata has stepped down from the company's board.

The Tata group used to have a 14 per cent stake in HPL and is associated with project from early nineties.

The transfer of shares to IOC has taken a controversial turn with The Chatterjee Group (TCG) moving the Company Law Board (CLB) over the West Bengal Industrial Development Corporation's (WBIDC's) decision to allot a 7.5 per cent stake in HPL to IOC.

IOC had issued a Rs 150 crore cheque dated February 18, to WBIDC for the 7.5 per cent stake while fresh shares had been allotted to IOC at par (Rs 10), TCG has made an offer of Rs 29 per share for hiking its share in Haldia Petrochemicals by purchasing the entire stake of the state government.

TCG holds a 61 per cent stake in HPL. The West Bengal government holds 36 per cent in the outfit through WBIDC.

TCG has alleged that the West Bengal government has nexus with IOC.

According to TCG, the state government had refused to sign on the share purchase agreement send by the group in July.

However, the state government dismissed the allegation.

HPL chairman Tarun Das initiated a campaign to induct IOC as a strategic partner in late July.

He wrote to all the directors of HPL seeking their opinion about IOC's participation in HPL for which majority of the 16 directors gave their consent.