Haldia breakdown could benefit Iran

Following the failure of India's Indian Oil Corp (IOC) and the state government of Bengal to agree upon the package to develop Haldia into a world-class petrochemical hub, IOC may head to Iran to build a petrochemical plant there. Apparently, IOC's offer of a US$1.3 million package was not enough for the state government.

Speaking to India's The Telegraph daily, an unnamed IOC official admitted that the deal for Haldia is more or less buried and that Bengal's loss may be Iran's gain. Apparently, a team of senior IOC officials will head off to the Middle Eastern country to do a feasibility study on setting up a giant petrochemicals plant in Iran with Iran's National Petrochemicals Company.

Such a move is apparently made more feasible by the fact that Iran's abundant supply of natural gas, which can be used as a feedstock, will be of great benefit to a JV plant there.

If a move to Iran goes according to plan, the Haldia Petro plan will be called off despite the fact that lenders have hammered out a corporate debt restructuring package and the fact that Gail has come onboard as a promoter of the project.