I-Sec, which was roped in by IOC, is believed to have estimated an outgo of Rs 80 crore for the Centre's 60 per cent stake in Lubrizol India. On the other hand, IDBI and Enam Financial, which made an independent exercise on behalf of the Government, have projected a payment of Rs 110 crore.

Sources say IOC is of the view that both valuations must be studied in detail before a final decision is taken on the amount payable. "Since the time I-Sec made its estimate, Lubrizol's overall performance in 1998-99 has improved which means that the outgo could be higher," sources said. This could result in the Fortune 500 company paying an amount closer to the figure drawn up by the IDBI-Enam Financial combine.

Once IOC buys the Government's holding, it will offload 10 per cent to Lubrizol Corporation of the USwhich presently holds 40 per cent in the company. Eventually, Lubrizol India will be a 50:50 venture between IOC and the American company. There have been unconfirmed reports that the Oil and Natural Gas Corporation (ONGC) is keen on participating in the venture as a third partner. This would mean that IOC would need to offload a part of its stake to ONGC but, in the opinion of experts, this seems an unlikely possibility. The rumour stems from the fact that the two oil companies have kicked off the process of participating in a series of petro-related activities both in the country and abroad.

ONGC was among the initial contenders to buy out the Government's holding in Lubrizol India more than two years ago. The venture was then to have been recast as a 50:50 tieup between the oil PSU and Lubrizol Corporation. Delays occurred with a change in Government at the Centre coupled with obstacles on valuation of the scrip. Finally, ONGC withdrew from the race and IOC stepped in even while there were othercandidates like Cochin Refineries and the Indian Petrochemicals Corporation.

The top brass of IOC and Lubrizol Corporation met in the UK to thrash out various modalities of the joint venture which included the new board of directors and scope of operations. This time around, there is no reason for the Government to delay the process as it is keen on getting on with the process of meeting its disinvestment target of Rs 10,000 crore for 1999-2000. The fact remains that it has clearly indicated in the previous budget that it plans to confine its stake to 26 per cent in non-strategic PSUs. Lubrizol India can rightly be classified as one in the opinion of experts.

The company was incorporated in 1966 and its manufacturing unit is situated at Turbhe village in Navi Mumbai. It has a second unit for manufacture of extreme pressure additives at Taloja in Raigad district. Lubrizol India makes and markets additive systems for automotive and industrial lubricants and also develops other speciality chemicals for thepetroleum industry.

The latest report of the petroleum ministry states that the company reported a turnover of around Rs 363 crore in 1997-98.