Though a year has elapsed after the corporation received shareholders' approval at its annual general meeting (1996-97) for a joint venture with GSL to manufacture polyester intermediates, it is yet to make up its mind on the issue. The proposed alliance was a part of IPCL's forward-integration plans. A senior IPCL official, however, said that it was too early to say that the company has abandoned its plan. But according to insiders, IPCL is not interested in the venture.

Earlier, IPCL had agreed to join hands with GSL after ICICI had approached it with a restructuring package for the Bagrodia-owned company. Moreover, it also fitted in with IPCL's strategy of going in for joint ventures. Later, the sudden industrial downturn may have prompted thecorporation to keep the plan in abeyance, sources said.

Institutional sources said that GSL had started showing signs of revival and IPCl's joint venture with it cannot be ruled out at this juncture. GSL's plant located in Bharuch, Gujarat has a capacity of 65,000 spindles.Meanwhile, IPCL is going ahead with its joint venture with Ludhiana-based Malwa Cotton. IPCL board has cleared the joint venture and is awaiting cabinet approval. IPCL, which reported its worst-ever results in the first quarter of the financial year, is implementing turnaround strategies.