Haldia supermax expansion project rescheduled to 2008-09

Kolkata: Haldia Petrochemicals’ (HPL) Rs 840-crore supermax expansion project, which involves scaling up its naphtha cracker unit capacity from 5,23,000 tonne to 6,70,000 tonne per annum, is running behind schedule.

The expansion project, slated for commissioning by April, has been rescheduled for completion by the third quarter of 2008-09.

The delay has been caused by the shortfall of designers, fabrication space and other materials required for the project, Swapan Kumar Bhowmik, managing director of HPL, told reporters on the sidelines of the launch of PlastIndia 2009.

Bhowmik admitted that there would be a cost-overrun due to the delay in the project but did not disclose the figure. HPL has also planned to make a strategic shift to value addition by manufacturing products which did not require much naphtha.

“Our decision to go for such products stems from the spike in the price of naphtha. The price of naphtha has reached an all-time high of $860 per tonne,” he said.

HPL is also in the process of negotiations with L&T for acquiring latter’s 51 per cent stake in HPL Cogeneration.

HPL Cogeneration, which runs a 160 mw power station in Haldia, is a joint venture between HPL and L&T, in which L&T holds a 51 per cent stake while the balance 49 per cent is held by HPL.

The West Bengal government, which holds a 51.67 per cent stake in HPL, has already given its approval to the company for acquiring L&T’s stake in Cogeneration, which involves Rs 150-200 crore.