IOC keen on management control of HPL

KOLKATA: Indian Oil Corporation (IOC) is set to formalise plans for Haldia Petrochenmicals Ltd (HPL) within the next seven to ten days. The country’s largest oil marketing company has said it is keen on acquiring management control in HPL, and is not intent on remaining only as a strategic investor with a 7.5% stake.

“We are awaiting the verdict of the Company Law Board, which is likely to be announced within the next few days. However, we will come out with our plans for HPL after the verdict,” top IOC sources told ET.

“IOC and HPL are natural partners for a number of reasons. We are very committed to grow our petrochemicals business. HPL fits in nicely in these plans. Moreover, HPL uses naphtha as a feedstock and it requires around 1,10,000 tonnes per annum. We can supply the entire quantity of to HPL,” the sources added.

Earlier, speaking to reporters on the sidelines of IBP extraordinary general meeting IOC chairman, Mr Sarthak Behuria said: “There is no place for two in HPL,” he said when asked to comment on reports that Reliance Industries’ chairman Mukesh Ambani had evinced interest in HPL during a recent meeting with West Bengal chief minister,Mr Buddhadeb Bhattacharjee.

The merger of state-owned oil marketing firm IBP with its parent IOC would be completed by December this year.According to IOC chairman Sarthak Behuria, post-merger, government holding in IOC would come down from 82.03% to 80.35%, while the capital base of the company would rise from Rs 1,168 crore to Rs 1,192 crore.