Kolkata, June 24: After the Chatterjee group failed to strike a deal involving the equity recast of Haldia Petrochemicals with Indian Oil Corporation, the West Bengal government has started talks with IOC.

Sources in the state government said the industry department was currently involved in the discussions with IOC. The state government had earlier authorised the Chatterjee group for carrying out negotiations with a possible strategic partner after providing them management control with 51 per cent equity. Meanwhile, IOC forwarded a proposal to the West Bengal government on June 18 outlining its demands that would be the part of the deal with the promoters.

The IOC has demanded management control with 26 per cent stake in HPL. It also wants HPL to procure naphtha from its refinery at Haldia. Bureau Report