Haldia buys out remaining L&T stake in cogen JV

07 May 2008 11:22  [Source: ICIS news]

MUMBAI (ICIS news)--India’s Haldia Petrochemicals Limited (HPL) has acquired the remaining stake from Larsen and Toubro Limited (L&T) in their HPL Cogeneration Limited (HPLCL) joint venture for about Indian rupees (Rs) 1.8bn ($43.5m), sources from the company said on Wednesday.

The acquisition suits both the companies’ needs and will boost the HPL's profitability, a top official from the company told ICIS news.

"With a strong financial position and an increased energy requirement due to capacity expansion, HPL considered this as an opportune time to buyout L&T’s 51% stake in HPLCL," the petrochemical major added.

The takeover would provide flexibility in fuel usages resulting into better fuel efficiency, reduced power and steam cost and improvement in environmental performance, the firm said.

HPLCL, which was set up in 1998 with installed capacity of 116 megawatts of electricity, supplies steam and power to HPL.

($1 = Rs41.37)

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By: Aaron Rodrigues
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