As the earlier draft rehabilitation scheme circulated in June 1998 had lapsed, the board asked IFCI to incorporate all the objections and suggestions of the parties concerned and submit the revival report by April 16.

In a bench hearing, BIFR directed the Government to convey its stand by the same timeframe regarding the company's request for release of additional funds from the `no lien' account which has about Rs 48 crores.

Pointing out that the uncertain and open-ended situation on rehabilitating the CCI was not in the interest of anybody, the board set the definite timeframe of mid-June for the central Government and workers to firm up their stand over the revival scheme when it will come up forsanction.

The board expressed concern over the rising fund requirement for revival of the state sick enterprise which was pegged at Rs 35 crores eight months back to Rs 149 crores.

"It was not clear as to what the promoters were trying to achieve by getting more time. The ground level position of the market and the fundamentals of all the units were known... And if more time was wasted, the position of the company would worsen further,'' the board said. It may be noted that the earlier draft scheme could not be sanctioned on account of the stand of IDBI and SBI regarding the proposed treatment for their dues - non-availability of a firm commitment from the Centre for induction of the required funds and objections raised by workers over the closure of unviable units.CCI director finance RK Agrawal said that while the company's total working capital needs continued to be Rs 58.35 crores, the bankers on their own had reduced these limits to Rs 49 crore. Hence, he requested that the banks be asked to restorethe drawing power of the company at levels assumed under the scheme.Moreover, Agrawal said the viability of various units was also getting adversely affected on account of procedural delays.

Presently, Mandhar, Akaltara and Charkhi Dadri units were giving substantial negative contribution per tonne of cement. In addition to the non-availability of Rs 75 crores expected from the sale proceeds of above three units, there was a shortfall in cash accruals vis-a-vis the projections of DRS, amounting to Rs 12.71 crores during 1997-98 and Rs 60.73 crores during 1998-99. "While updating the scheme, requirement of funds to that extent would have to be kept in view... The payment period of balance 50 per cent of the settlement amount would need to be extended by one year," the company submitted. Due to fall in cement prices by 15-20 per cent, the Government sought some more time to consider the draft scheme in depth and hold discussions with the merchant bankers for the sale of unviable units.