The Save HOCL Joint Action Council has urged the authorities to merge Hindustan Organic Chemicals Ltd. (HOCL) at Ambalamugal with the Kochi Refinery of Bharat Petroleum Corporation Ltd. (BPCL).
A release issued by the council here said that a meeting of the Cabinet Committee on Economic Affairs had decided to close down non-profitable plants at the parent unit of HOCL at Rasayani in Maharashtra and to hand over the dinitrogen tetroxide plant to the Indian Space Research Organisation (ISRO).
Meanwhile, the Union government has decided to address the liabilities of HOCL by selling nearly 442 acres at the Rasayani unit to BPCL at a cost of ₹618.8 crore and by providing a bridge loan of ₹365.26 crore on the assurance that the Centre will take the money generated from the sale of the remaining 600 acres at the parent unit, the release said. The council representatives pointed out that the lack of clarity on the revival plan initiated by the Centre had created an uncertainty over the future of the Kochi unit of HOCL. This unit could be run profitably if the liabilities of the parent unit at Rasayani are cleared, they said.
The major raw materials at HOCL, including LPG and benzene, are procured from the Kochi refinery of BPCL. The synergy of operations between the HOCL unit and the Kochi refinery of BPCL will make the takeover feasible.
Several study reports had said that the functioning of the Kochi unit of HOCL could be made profitable if it was merged with BPCL. A parliamentary committee had also recommended the merger of the HOCL Kochi unit with BPCL, the release said.
The ongoing development projects at Kochi Refinery and the proposed petrochemical complex have stepped up the chances of the merger of the HOCL Kochi unit and BPCL. The CCEA meeting has opened up an opportunity to realise a promise given by Union Petroleum Minister Dharmendra Pradhan hat the HOCL Kochi unit could be considered for business partnership, if it attains independent status.
Chief Minister Pinarayi Vijayan, political and trade union leaderships, and MPs from the State had actively intervened to save the HOCL Kochi unit. The council had also organised a protest for nearly 167 days in front of the company. These efforts made the Centre promise that the HOCL Kochi unit would not be closed.
A meeting will be held on May 23 to explain the latest developments related to the Kochi unit of HOCL, the release said.
