Union finance minister Yashwant Sinha is also trying hard to get the updated proposal through for this ailing SAIL subsidiary before the poll dates are announced. They have about a month in their hands.

With 13 modernisation proposals in the last 22 years having been shelved by the Union government, Iisco insiders doubt if the latest TPE proposal would get through. Even if the present government clears the proposal, it would also require clearance from the Russian government. "Once elections are formally declared it is extremely doubtful whether the government can take a decision on the matter," a senior Iisco official said.

TPE initially started with a Rs 2100-crorerevamp proposal, with funds proposed from rupee-rouble escrow account. According to the Iisco official, the proposal is now for a Rs 800-crore revamp proposal - a sinter plant, two twin hearth furnaces, a ladle refining furnace, a continuous billet caster and revamping of some of the older units. The production capacity would be raised from the present 0.3 million tonne (mt) to 0.6 mt.

"This is being called the first phase, but what could be there in the subsequent phases or what to expect ultimately from the TPE proposal is still unclear," the official pointed out. It is evident that TPE is being offered a majority stake in Iisco, with an investment of only Rs 400 crore. The remaining Rs 400 crore will be raised by TPE from the market.

The Iisco management, now used to preparing proposals, often burning midnight oil, and then see them go from table to table ultimately to be closed even without notice, is now restive because of the deteriorating condition of the plant.

Said Iisco managing director GSGarcha: "We have always talked about major modernisation proposals, but for some reason or other things have not matured. At the same time, we have ignored small investments to keep the old plant going."

Iisco insiders also feel that once the government agrees about giving certain benefits to a foreign partner, the same should also be available to Iisco, even if the foreign proposal does not go through. Any update proposal for Iisco presupposes that it would start with a clean slate. This would mean writing off all accumulated losses, outstanding loans, interest, etc. An update proposal also looks forward to certain benefits from the state government, like sales tax exemption for seven years, electricity duty exemption for five years, entry tax exemption for three years and certain other local exemptions. If these benefits are given then the Iisco revamp could be taken over by SAIL or Iisco in stages, Iisco insiders believe.