At the board meeting of the company held here today, the West Bengal government agreed to give Rs 100 crore to the company within a period of 15 days, HPL sources told PTI.
An agreement would be shortly signed between the government and WBIDC, the sources added.
To tide over the working capital crunch, HPL had approached the consortium of lenders to provide Rs 1000 crore. The lenders in turn asked both the promoters, WBIDC and TCG, to provide Rs 100 crore each.
While the government agreed with the proposal, TCG said it would not be able to provide the money as sought by the lenders.
Meanwhile, WBIDC has embarked on a process to sell off its shares in the company.