According to the latest report by ICICI, the revised cost of the 50,000 tonnes per annum project is now Rs 639.50 crore against the Rs 595 crore estimated in May 1997, when the company decided to add some facilities.

The breakup of the increase, as assessed by ICICI, is Rs 29.5 crore on account of foreign exchange fluctuation and Rs 15 crore from preliminary/ pre-operative expenses. In the revised means of finance, ICICI has indicated increase in rupee loans to Rs 246.30 crore from Rs 229.80 crore and increase in foreign exchange loans from Rs 176.70 crore to Rs 206.20 crore.

Sources in SWIL disclosed that the company has been able to secure underwriting support of Rs 45 crore from the financial institutions against the proposed public issue of Rs 53 crore. SWIL also proposes toraise Rs 62.50 crore from a rights issue.

Sunil Kumar Khaitan, SWIL's joint MD said that the project is expected to go on stream in early February 1999. "Despite the rise in costs, our project remains viable," he added.

The project cost was first revised last year to Rs 595 crore, from Rs 464 crore, mainly because the firm decided to add a Rs 45.61-crore captive power plant and new equipment worth Rs 36.29 crore.