IOC reckons Haldia Petrochemicals may never be viable

Vol 5, PW 9 (20 Jun 01) News in Brief

IOC continues to have strong reservations about the viability of the West Bengal promoted Rs5,130cr ($1.2bn) Haldia Petrochemicals project.

Sources in IOCs Calcutta office tell Petrowatch they see little future unless the debt component is sharply reduced and the equity holdings increase. A study on the Haldia project by KPMG Peat Marwick reveals that the debt to equity ratio has risen dangerously to 4.2:1.

West Bengal chief minister Buddhadev Bhattacharya has pleaded with Indian oil minister Ram Naik to ensure equity participation of Indian Oil in Haldia Petrochemicals. IOC's participation is considered crucial for the project's survival.