Haldia Petrochemicals Ltd offers idle capacity to raise funds

KOLKATA: To improve cash flow, Haldia Petrochemicals Ltd (HPL) has floated an expression of interest for companies keen to utilise its idle capacity.

"We have decided to offer idle capacity of HPL which would be done through tendering process. It is not that we want to favour any particular company," West Bengal Industry Minister Partha Chatterjee said.

When asked how much of cash flow the beleaguered company is expecting from giving away capacity to others, Chatterjee did not give any numbers.

HPL has not been able to utilise its capacity due to cash crunch in working capital and IOC, the lead firm to supply naptha, has cut the credit period.

HPL had suffered a cash loss of Rs 400 crore in 2010-11. The cash loss in the Q1 of 2012-13 was Rs 260 crore due to frequent shutdowns of the plant.