IOC edgy on Reliance holding in Haldia Petro

Indian Oil Corporation (IOC) will sever ties with Haldia Petrochemicals if Reliance Industries enters as an investor in the company, popularly termed as the showpiece industrialisation project of West Bengal.

IOC Chairman S Behuria made it clear on Thursday that there is no room for IOC and RIL both in HPL.

He was in Kolkata to attend the extraordinary general meeting of IBP for its merger with Indian Oil.

Reports indicate that RIL has evinced interest in picking up a stake in HPL and the state government is not averse to it. "There is no communication regarding this from the state government. But there is no room for two promoters such as RIL and IOC," he said.

The oil PSU currently has 7.5 per cent stake in HPL following the private placement of Rs 150 crore last year. Another HPL promoter, TCG group objected to the placement and has moved the Company Law Board. Elaborating IOC's point of view, Behuria said that IOC would like to have management control over HPL.

RIL is expected to make a similar demand. "Both of us cannot have management control at the same time," he added.

According to him, IOC is in constant touch with the state government over HPL. The oil major is even ready to buy the stake of TCG group in the petrochem outfit.

"The matter is now at CLB. Once everything is settled, we will take a view on HPL. If Purnendu Chatterjee offers his stake, we are ready to buy. But for that TCG has to approach us,"he added.

However, commenting on its participation in the proposed chemical hub in Haldia, IOC chairman said that both IOC and RIL could participate in the hub.

"There is enough room for two big investors in the chemical SEZ. It needs investment to the tune of Rs 20,000-25,000 crore. So both RIL and IOC can invest there," he added.

The state government has requested IOC to take up the role of an anchor investor in the chemical hub.

The West Bengal government has urged Rs 15,000 crore investment in 3-4 phases from Indian Oil Corporation in the proposed Petroleum Chemical and Petrochemical Investment Region (PCPIR) in Haldia.

The oil major is now investing Rs 3,800 crore for expanding the refinery capacity at Haldia and for setting up a paraxylene facility.