Board approvals notwithstanding, the financial closure for the project is expected to be delayed by anywhere between one and one-and-half years, if not more. Reason: The additional outlay will have to be approved by the Public Investment Board (PIB) and the Cabinet Committee on Economic Affairs (CCEA).

Obtaining these approvals will require considerable time as the entire gamut of issues -- from inadequate availability of gas for the project to low world prices of urea to recent observations of bankers on the financial viability of the buy-back arrangement with India -- will be thrown up for reconsideration again. When these approvals were first obtained, they took acouple of years to come through.

The department of fertilisers is also contemplating seeking an independent review of the project by the department of expenditure in the ministry of finance. The earlier expenditure secretary C. Ramachandran had expressed mis-givings about the viability of the joint venture and had even informally suggested that the project be scrapped. A finance ministry review now will mean further delays for the project.

Kribhco and RCF will have to equally share an extra outgo of $ 45 million (around Rs 193 crore), which will be added to the originally proposed Indian equity of $ 180 million (Rs 774 crore), to satisfy bankers to the project who seem nervous about the long term viability of the entire investment proposal. Oman Oil Company -- which is a 50 per cent partner with RCF and Kribhco -- will contribute half of the total revised equity capital of $ 450 million as against the earlier figure of $ 360 million. Comparatively, the debt component will be lower at $ 750 million asagainst $ 840 million earlier.

Highly placed sources in the department of fertilisers have claimed that RCF might find it difficult to muster up its share of the risk capital for the project, given its present resource position. "Even putting together RCF's original share of equity would have been difficult. The enhanced contribution required now will really pinch the company," a fertiliser department official said.

RCF's tight resource position notwithstanding, the company's board is set to give the green signal for enhanced equity contribution. "The political pressure, especially from the Prime Minister's Office (PMO), is intense and the company will find it difficult to resist it. Money has to be found for the Indo-Oman complex," well placed sources said. Kribhco, on the other hand, can easily contribute the extra money because it has a strong free reserves position.