Escorts chairman Rajan Nanda told media persons on Thursday that the institutions are meeting next week in Mumbai to discuss the matter. Nanda is, however, keeping his fingers crossed and is still hopeful of institutions' approval.

Institutions are believed to be studying the buy-back clause before it takes a view on Escorts' proposed scheme. Earlier, the institutions had decided to hold back their approval on the scheme after the company had got a resolution passed to this effect at its last annual general meeting.

On the scheme, Nanda said that Escorts was offering its shareholders an option of investing in the company's shares at a later date. The company was paying back the investors their money at a better rate than the initial offer, he added.

Nanda further said that as per Escorts'plan, the company was to pay from the cash-flow the company is expecting from its divestment."The real cash flow is expected start from 1999-2000," Nanda said.

When asked on the promoters' decision to hike their share holding the company, Nanda said that the promoters are planning hike it to 51 per cent.

At present, Escorts' promoters hold 44 per cent in the company, while LIC holds 12 per cent, GIC 8 per cent and UTI 8 per cent in the company. Further, the public holding in the company is estimated to be 21 per cent and 2 per cent is held by foreign institutional investors.

Nanda said that company was planning new projects and is contemplating a major joint venture in the next one year.