The Tata Group will hold a token stake of just 3 per cent in Haldia Petrochmicals Ltd, according to Tata Group chairman Ratan Tata. It currently holds 14 per cent in HPL, a three-way joint venture between West Bengal government, the Chatterjee Group and the Tata Group. “We have agreed to retain the 3 per cent token stake in HPL, following the request made by the West Bengal chief minister, Buddhadeb Bhattacharjee. I will also continue to be in the board of HPL,” Mr Tata told reporters on the sidelines of the 41st annual general meeting of Tata Tea Ltd here Wednesday. 

He said that the group will sell its remaining 11 per cent stake in HPL to West Bengal government. He also said that the group will not ask for a premium for retaining the token 3 per cent stake in HPL. “We just want that the cost of our holding in HPL is recovered,” Mr Tata said. He added that the Tata Group is also planning to increase its amount of investment in Bengal. He said that he had a detailed discussion with the state chief minister on the areas of investment in the state. “Mr Bhattacharjee is keen that Tata group makes a substantial investment in the automobile sector.

However, we are yet to decide anything. A final decision will be taken only after we complete the feasibility study,” he said. He also said that the group will not invest in any sector where the management is not 100 per cent sure about its profitability. “I personally feel that Tata group should increase its investment in the state and so we are holding talks with the state government,” Mr Tata said. Commenting on the group’s hotel chain business, Mr Tata said that the Indian Hotels  management is open to the idea of taking over new properties overseas. “We are concentrating  mainly in the USA and African countries.”