The IDBI executive committee, which discussed the issue on March 15, felt the company should evolve a plan for rendering its operations profitable, and arrange for clearance of overdues, before it could think of funding Floating Rate Notes' (FRN) redemption scheme, IDBI sources said here on Monday. FRN was due for redemption in July 1999 and even the negotiated rollover of redemption later could not be implemented due to the company's inability to tie up funds. The committee decided that the matter of funding the company would be considered after it complied with the earlier mutually agreed conditionalities, including resutructuring of group operations and hiving off some of them, they said.

Essar group's interest overdues alone to IDBI stood at Rs 332 crores as on January 31, 2000, consisting Rs 147 crores from Essar Steel and Rs 185 crores from other group companies, they said adding their principal overdues on that day were Rs 86 crores and Rs 32 crores respectively.