Tata backs Haldia share sale to IOC

Tata group chairman Ratan Tata on Tuesday came out in support of the West Bengal government for offering shares of Haldia Petrochemicals Limited to state-owned Indian Oil Corporation -- a decision contested by HPL's principal promoter, the Chatterjee group.

Tata, who had stepped down from the HPL board recently, said, "It was the best thing that has happened to Haldia Petrochemicals.

"I fully support the move and hope that it would be vindicated over time," Tata said. He said that IOC would make HPL a strong company and "the strength of the oil PSU would contribute to the strength of HPL...I think it is a very positive move."

Earlier, the Tata group, through Tata Motors and Tata Power held nearly 14 per cent stake in HPL. The stake had been divested to a large extent and the Tatas currently hold a nominal three per cent stake in the company.

Asked whether IOC should get management control in HPL, Tata said, "I do not want to comment on this. The company had done a great deal to come out of the problems."

HPL's principal promoter TCG moved the Company Law Board seeking stay on allotment of 7.5 per cent shares of the petrochemicals firm to IOC by the state government.

In an interim order, the CLB refused stay the allotment of the shares to IOC.