Financial Daily from THE HINDU group of publications
Thursday, Jan 02, 2003
Financial Daily from THE HINDU group of publications Thursday, Jan 02, 2003 |
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Corporate
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Alliances & Joint Ventures HPL signs R&D, IT pacts with GAIL Our Bureau
KOLKATA, Jan. 1 HALDIA Petrochemicals Ltd (HPL) signed commercial agreements with Gas Authority of India Ltd (GAIL) late on Tuesday night in New Delhi after protracted negotiations. Under this, HPL and GAIL would have among other things a product swap arrangement. Besides the marketing tie-up, the agreements signed on Tuesday also have scope for collaborations on research and development and information technology. HPL sources said that the agreements construe a kind of strategic alliance between the two corporates reflecting their "intent on co-operating in certain areas''. These agreements are expected to result in a cash-flow of nearly Rs 300 crore for HPL. The sealing of this pact, under discussion for nearly six months now, is considered important for HPL, which is trying to reach some milestones set out by its lead lender, the IDBI, as conditions for approving HPL's loan restructuring package. On the marketing agreement, sources said that while HPL would sell to GAIL around 35,000 tonnes of polypropylene every year, it would buy from the gas major `pentane' - which is a substitute for naphtha. However, any agreement on the much-publicised equity tie up with GAIL still eluded HPL, which has been asked by IDBI to arrange Rs 700 crore of additional funds by March 2003.
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