New Delhi: Reliance on June 4 took over the management control of Indian Petro Chemicals Limited (IPCL), after paying a cheque for Rs 1,490.84 crore to the government for the 26 per cent stake, but dispelled the fear of market abuse due to the group getting virtual monopoly in the petrochemical sector, saying that the products were freely traded.

Reliance Industries executive director Nikhil Meswani handed over the cheque to Ashok Chawla, joint secretary in the Petrochemicals Ministry after signing of the agreement between the government and the corporate house for share transaction.

Reliance Industries, the country's largest petrochemical company, said it would continue to focus on the domestic market and do everything possible to bring IPCL at par with international standards.

"IPCL is a well run company and we will supplement resources in terms of technology and human capital," Meswani told reporters after the signing ceremony. He declined to divulge details of forthcoming investments, stating that it was too early.

Reliance said acquisition of India's second largest petrochemical company IPCL would not lead to absolute monopoly in any of the product lines, he said.

Stating that IPCL's two gas based cracker plants at Nagathone and Gandhar and Naptha-based complex at Baroda would have surplus capacity Meswani said, "We will continue to grow to bring petrochemical consumption in India to world levels."

Responding to queries about Reliance's interest in acquiring stake in Haldia petrochemicals, he said that there was no such proposal.

Disinvestment process of IPCL was concluded on June 4, with the signing of a shareholders agreement, guarantee agreement and transfer restriction agreement between the government and Reliance.

PTI