HPL wooing corporates for funds

HPL wooing corporates for funds
EEB & AGENCIES

SEPT 6: The management of Haldia Petrochemicals Limited (HPL) and West Bengal Industrial Development Corporation (WBIDC) are making hectic efforts to attract investment in the downstream sector.

Companies like Bayer, High-Tech Carbon, Phillips Carbon, Cimmco Birla and Hindustan Organic Chemicals have been contacted for setting up units in the downstream processing units, WBIDC sources said, adding that talks were in an advanced stage.

An agreement had already been signed with Marcus Oil to produce paraffin wax, the sources said. Till date, nearly 65 downstream units had been established in the state.

Meanwhile, the Task Force on Haldia Petrochemicals formed by the West Bengal government following McKinsey's recommendations has said investors are apprehensive of infrastructure support for setting up downstream units.

The Task Force chaired by chief secretary Manish Gupta, recently submitted its report to the state government. It said apprehension in the minds of investors about difficulty in getting land was one of the major reasons why downstream units were not forthcoming.

Since the project started as late in 1993, entrepreneurs were waiting for the HPL unit to actually start commercial operations before setting up units, was one of the other reasons cited by the Task Force.

Besides, investors are staying shy because of perceived lack of market in the eastern region. To overcome the problem, the Task Force said WBIDC had been advised to reappraise the viability of the polypark project and to implement it through a suitable agency.

The report also suggested that the government should accord fast track status to projects, mainly in the medium and small-scale sector in the downstream sector by giving provisional registration forthwith.

This, according to the report, would necessitate introduction of unified procedure throughout the state, the report mentioned. It had been envisaged that some units would be set up outside dedicated growth centres and polyparks. It also recommended time-bound procedure for giving permission for various utilities to the intending investor.

Meanwhile, West Bengal Finance Minister is expected to meet officials of other promoters of Haldia -- the Tatas and the Chatterjee group -- on Thursday in a bid to get the required funds. The Rs 5,000 crore plus project is yet to get the full funding from the promoters. West Bengal government which is facing financial difficulties is keen on other promoters chipping in with more funds.