Bharat Bhari Udyog's chairman and managing director RP Singh recently told The Financial Express that the revival package of the heavy engineering outfit is going haywire due to certain crucial changes in the market scenario.

"There have been certain crucial changes in the market scenario which were considered while drawing up the revival package of Jessop. Moreover, the company did not receive the neccesary amount of wagon orders from the Indian Railways that was envisaged in the package," Singh said.

He also added that the inflow of funds for the revival process is not in line with the plans of the revival package. "We have failed to sell our Durgapur property. The company headquarters, which is located in Dalhousie Square in Calcutta was sold to the West Bengal government for Rs 36 crore last year. The government is paying it in instalments," Singh said.

Clarifying the need for modification, he said: "The company has failed to meet the projections of the revival package. If the current package is being allowed to continue the whole package would be futile and the company would not revive. An intervention is needed immediately. We are trying to modify the revival package and move to the BIFR for clearing these changes, which would make the package feasible."

The company is, at present, working out the finer details of this proposed modification. Once it is worked out, it will move the BIFR for its consent. Similar modifications are also needed for Bharat Brakes & Valves Ltd, which is a subsidiary of Burn Standard & Co. The management is also considering a proposal to merge Bharat Brakes & Valves with Burn Standard. However, the detais are yet to be worked out.

Singh also said that Jessop is looking for new business prospects, which are not mentioned in its revival package, which has two parts. The first is fund-based, worth Rs 91.2 crore, and the second is non-fund based, worth Rs 277.74 crore.

Sources in the company said that revival package envisaged a cash profit during the financial year 1998-99, which it failed to achieve. "We have continued with the losses. The revival package targeted sales of Rs 62 crore during this period but we could only make it to Rs 50 crore," sources added.

However, the management of Bharat Bhari is confident that the future prospects of its companies, including Jessop are likely to be better during the next financial year, 2000-01.

"First, a new government will be installed by the end of this year. So there is a chance that wagon procurement will increase. Second, after the recent railway accidents, it has been realised that the old wagons have to be discarded for newer ones. Finally, industrial growth is on the rise," Singh said.