As per a schedule prepared by the department of disinvestment (DoD), the process to select an adviser for PPL sale is on, and the adviser is likely to be appointed by the end of this month.

The adviser would conduct the exercise of due diligence and assist the government in preparation of advertisements, inviting expressions of interest (EoIs) from the interested parties in the last week of March. The interested parties will get a month to respond. The DoD expects to complete the process of short-lising of bidders in the first week of May. Withing 10 days, the short-listed bidders would be expected to sign the confidentiality agreement.

In the third week of May, information package about PPL would be finalised and distributed among the short-listed bidders. The bidders would get a month to complete the process of due diligence.

As per the DoD schedule, in July it would receive the final financial bids, evaluate it, and go for the cabinet and regulatory approvals. Somewhere in the middle of August, the government expects the completion of PPL privatisation and the inflow of funds. In November last year, the cabinet committee on disinvestment (CCD) had decided in favour of 74 per cent strategic sale of PPL. This decision would be implemented along with financial restructuring. The accumulated loss of the company, at the end of the last fiscal stood at Rs 401.89 crore. So, the department of fertilisers proposed for a second financial restructuring proposal of around Rs 750 crore.

The main features of the proposals are reduction of equity share capital, writing down the face value of the existing shares, reduction of preference share capital, conversion of plan loan into equity shares, waiver of interest and penal interest, infusion of fresh funds, etc. This proposal is under consideration of the government.

An earlier revival plan had cost the government around Rs 600 crore. It started on March 31, 1994, but failed to revive the company. PPL, a fully owned government company, was set-up for the manufacture of di-ammonium phosphate (DAP), to meet the nation's demand for phosphate fertiliser.

The paid-up capital of the company is Rs 331.65 crore, comprising Rs 214 crore of equity and Rs 117.65 crore of the preference share capital.