Concern over Haldia Petro's high debt-equity ratio

By Our Staff Reporter

KOLKATA, JUNE 23. The Union Petroleum and Natural Gas Minister, Mr. Ram Naik, today expressed concern over the high debt-equity ratio of Haldia Petrochemicals and the resultant sickness. Ensuring Centre's support and co-operation to the project, he said KPMG would submit its report on Indian Oil's proposed participation in Haldia Petrochem before June 30.

The Ministry would take a closer look at the report, he said, and added that ``This is a new project and we all are anxiously waiting to bring this project out of the crisis''. Mr. Naik was addressing members of the Bengal Chamber of Commerce and Industry here.

Though the oil import bill had gone up from Rs. 25,000 crores to Rs. 80,000 crores in the last two years, due to a three-fold rise in crude prices, Mr. Naik stressed that subsidy on LPG and kerosene would continue even after deregulation of energy prices from March 2002.

Later addressing a gas cooperation agreement between Gas Authority of India (GAIL) and the West Bengal Industrial Development Corporation (WBIDC), Mr. Naik said the agreement reflected the Centre's thrust on exploration and generation of new energy sources.

As per the agreement, a joint working group (JWG), chaired by a senior GAIL official, will conduct a techno-economic feasibility study on the gas demand potential, geographical distribution of gas demand and the requirement of pipeline infrastructure.

Apart from GAIL, WBIDC and the West Bengal Government, the working group will be represented by the Departments of Power, Agriculture and Greater Calcutta Gas Supply Corporation. Various gas supply options such as coal gas, coal bed methane, CNG and import of gas through pipeline will also be studied by the JWG.

The Ministry had already offered seven blocks for exploration of coal gas and coal bed methane gas a few weeks back. This apart, after almost three decades of waiting, three pilot projects for blending ethanol, a by-product from sugar mills, are being set up, Mr. Naik said.

Send this article to Friends by E-Mail

Section  : Business
Previous : Shift towards budget hotels
Next     : Archies revamps franchise network