IDBI officials, who met on Thursday for deciding on disbursing funds for the Rs 7,300-crore project, postponed taking a decision on the matter till all pre-conditions laid down by financial institutions (FIs) were fully met by the company. "The meeting considered Essar's proposal for fresh funds to the project. But we have deferred taking any decision on the matter for the time being," an IDBI official said. Essar officials declined to comment on the matter.

The institutions had asked the Ruias to raise funds through divesting their stake in favour of a strategic partner. Accordingly, the promoters zeroed in on Oman Oil Company for picking up 26 per cent stake in the firm. The Oman Oil board has given its `in-principle' approval for taking equity in the company, though a formal agreement on transferring the stake is yet to take place. If things move as planned, Oman Oil will infuse about $200 million in the project and, consequently, the promoters' stake will reduce to 40 per cent from the present 57 per cent.

Besides the promoters, FIs and mutual funds hold 14 per cent, and the balance is with the public. The promoters have pumped in over Rs 4,750 crore in the project. Essar Oil's authorised capital is Rs 1,500 crore, while the paid-up capital is Rs 371.51 crore. It has raised debt worth Rs 3,357.05 crore, of which term loans account for Rs 2,747.68 crore. The FIs have also asked the company to get a project-completion certificate. In this regard, Essar Oil roped in ABB Lumus, the Swiss-Swedish firm, as the engineeering, procurement and construction (EPC) contractor for the project. ABB Lumus is likely to provide Rs 185 crore as deferred suppliers credit and Rs 210 crore bridge equity for the project.