A potential conflict between the lead promoters on management control may over ride the looming “potential sickness” of Haldia Petrochemicals during the next board meet scheduled on March 27. HPL is expected to erode more than half of its peak networth, this fiscal.

Though none of the sides are ready to explain their individual positions, expectations are rife that the State Government, in support of some participatory shareholders of the company, may claim control over HPL management.

While, in a way that would give some direction to the company, there is adequate possibility that any such claim (by the State) would be contradicted by the lead private promoter, The Chatterjee Group (TCG), as it did in the past. The State Government may draw its inspiration from the Supreme Court order on September 30, 2011 that had turned down the TCG' appeal for control of key 15.5 crore shares in HPL. The court also validated the key nine per cent share-holding of IndianOil, ignoring opposition from TCG.

As TCG now has a slender 44.2 per cent majority in the petrochemicals as against 43.26 per cent of the State Government; the IOC shareholding may play a crucial role in any boardroom drama.

However, the private promoter has not run out of options either. The Supreme Court ruling had understandably left options open to TCG to seek redressal for alleged breach of trust by the State Government for not transferring the 15.5 crore shares as per a “private agreement” between the two in 2002. The phased share transfer pact was scrapped midway during the previous Left Front rule.

TCG, it is learnt had already requested the State Government to stand by its commitments in 2002 and allow the private promoter to hold majority control in HPL.

New chairman

While it is early to gauge the State's move, the talk of the town is that the Commerce Industry and Minister of West Bengal, Mr Partha Chatterjee, may be appointed as chairman of the joint stock company.

Though HPL does not have a full-time chairman for nearly a year now; the appointment of Mr Partha Chatterjee, if it comes through, would replace TCG supremo, Mr Purnendu Chatterjee, from the helm of affairs.

Ms Mamata Banerjee's government in July 2011 allowed Mr Purdendu Chatterjee to officiate as Chairman of HPL through a temporary arrangement, whereby his tenure was renewed by every successive board meet.

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