New Delhi, Dec. 4: The petroleum ministry has informed its shipping counterpart that Indian Oil Corporation (IOC) was ready to pick up the unpaid lease bill of Hindustan Fertiliser Corporation (HFCL) if the 80-acre plot of the ailing fertiliser company was transferred to the adjoining Haldia refinery.

While the Ram Vilas Paswan-headed fertiliser ministry has been dragging its feet over the transfer of land from HFCL to IOC, the unpaid lease, which amounts to about Rs 5 crore, had also become an issue as the Calcutta Port Trust wanted all dues to be cleared.

According to sources, another inter-ministerial meeting to resolve the issue will be held soon.

A petroleum ministry official told The Telegraph that the ministry would go by the decision of the shipping ministry on the issue of unpaid dues to the port.

“It is not in the national interest to delay the deal over the unpaid dues and if the shipping ministry wants IOC to pay the arrears, the oil company will do the needful,” he added.

Sources said the shipping ministry has sent another letter to the fertiliser ministry regarding the transfer of HFCL land to IOC. The fertiliser ministry has been stalling the issue by suggesting that plans to revive the sick fertiliser company should also be considered.

The existing lease between the Calcutta Port Trust and HFCL, which is a sick company, will have to be terminated before the new lease is drawn up.

The Haldia refinery had started off as a small 2.5-million-tonne refinery and has gradually expanded its capacity over the years. It now produces 6 million tonnes of petroleum products a year.

With the Paradip-Haldia crude pipeline scheduled to be completed during the current fiscal, IOC will have the infrastructure to supply larger quantities of crude to the Haldia refinery. The oil company is, therefore, keen to expand the capacity of the refinery and increase profits.

However, the existing plot is already congested and the company needs more space for an orderly expansion so that it can space out its new units appropriately.