Gas Authority of India Ltd said on Saturday that it will finalise equity investment in beleaguered Haldia Petrochemicals by the month end.

"We have carried out due diligence and are now weighing investment options. We will finalise the quantum by the month end," Gail chairman and managing director Proshanto Banerjee said on the sidelines of Petrotech 2003 conference in New Delhi.

Declining to reveal details of due diligence report, he said Gail investment was subject to promoters and lenders of the Kolkata based company carrying out financial restructuring.

"We are very clear in our minds that (equity) investment in HPL will happen only after comprehensive financial restructuring that factors the cyclical nature of petrochemical business," he said.

Banerjee refused to comment if Gail would invest Rs 200 crore (Rs 2 billion) or 10 per cent, whichever is less, as was said earlier.

Stating that Ernst and Young, Gail's advisor for HPL investment, had submitted its due diligence report on financial and business prospects of the firm, Banerjee said Gail had done proper due diligence on investment prospects.

"Our investment is subject to lenders agreeing to lower interest rates, writing off a part of debt, moratorium of interest payment and conversion of part debt into equity," he said. 

HPL has accumulated losses of Rs 871 crore (Rs 8.71 billion) till August 2002 as against equity capital of Rs 1,153 crore (Rs 11.53 billion).