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IOC's participation in HPL rests on KPMG report: Naik

Union Minister for Petroleum and Natural Gas, Ram Naik said on Friday that Indian Oil's equity participation in the ambitious Haldia Petrochemicals Limited would depend on the result of the due diligence exercise being carried out by noted consultancy firm, KPMG.

Once the board of India Oil goes through KPMG's report it would be forwarded to the ministry with comments and views of IOC directors, Naik said.

He added that only then, the ministry would "advise IOC".

As IOC is a navratna company, the oil major's board is fully empowered to take investment decisions of any amount.

However, owing to the presence of government directors, the oil company board "does take advice from the ministry," according to Naik.

When asked about the Union government's view on the petrochemicals project, Naik said it would be taken once the due diligence exercise was over.

The minister said the West Bengal government, one of the three promoters of HPL, had approached him for possible participation by IOC in the project.

IOC is already supplying naphtha to HPL since the start of the project a year back.

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