IBP had planned a Rs 40-crore public issue that would have brought down the government stake in IBP from the current 59 per cent to 51 per cent. It, however, did not materialise owing to a host of factors like weak market sentiment, opening up of the petroleum sector and the disinvestment commission's recommendations on privatising the company.

The company has submitted a proposal for a Rs 382-crore rights issue to the petroleum ministry but sources say that it is unlikely to be approved, as other areas will have to be sorted out first. The more important of these relate to the five-member committee's recommendations on IBP's restructuring, and its probable alliance with other oil companies.

"This is a top priority.The question of a rights or public issue being considered at this stage can be ruled out," sources said. The panel's findings may also determine if the disinvestment commission's recommendation on offering a 33 per cent stake to a strategic partner needed to be implemented.

In fact, as experts say, the rights issue would have given the centre an exit option from IBP, if it had renounced it in favour of another oil company. This, then, would have kept in line with the suggestion of roping in a strategic partner, a move that will be kept on hold till the committee submits its recommendations towards the year-end.

Sources have also indicated that apart from the OCC dues that should be soon in coming, IBP will consider other funding alternatives like short-term rupee loans, better working-capital management and its own internal accruals. The company will also, in the process, prioritise areas of activity, so that expenditure that is not necessary at this stage can be deferred.

"IBP's key strengths are inmarketing, and the company will ensure that every effort is made to keep the investment here going," sources said. Hence, recent endeavours to give a facelift to retail outlets as also going for the recent jubilee concept in marketing will continue with complete financial support.

This apart, IBP is categorical about its intent to pick up the 19 per cent stake in the three-million-tonne Numaligarh refinery. The outgo for this is around Rs 175 crore for which nearly Rs 115 crore has been paid. This is one of IBP's biggest and crucial investments, as it translates into a debut in refining. The corporation has also earmarked funds for its other joint ventures in Indian Oiltanking and Petronet India, the joint venture pipelines company promoted by the government.