"We have reached an agreement to sell our stake in GE Plastics India Ltd to GE," he said. Mr Chawla said that both partners had agreed upon a mutually acceptable method of valuation for IPCL's stake. IPCL and its Dutch partner had been wrangling over the issue of valuation of Indian partner's stake in the loss-making venture. Earlier GE had appointed Arthur Andersen for evaluation of the company. However, IPCL, not satisfied with the valuation, appointed independent auditors for starting the process afresh for the venture that came into existence way back in 1991.

The sell-off is part of the Indian entity's programme for restructuring business in the wake of government's decision to divest 25 per cent stake to a strategic partner. Chawla said that the corporation was also selling itsdodra plant to another PSU Indian Oil Corporation and the two entities would approach the government early next month with the valuation of the plant for transacting the holding.

He said that the process of selling the plant to IOCwould be completed by the end of the next month.

Sources said that proceeds from the deal would be addedto the kitty of the corporation which in turn would have much stronger balancesheet and added this was expected to give a better price for divestment of 25 per cent government equity in IPCL.

GE Plastics India Ltd, which has a plant near IPCL'sVadodara unit and a development centre in Gurgaon, manufactures blends compounds of polycarbonates, alloys and composites of engineering thermoplastics.

In 1998, the company also acquired two-multi-wallpolycarbonate sheet lines from Jain Irrigation of Jalgaon in Maharashtra.

The company reported a loss of Rs. 9.1 crore on a turnoveron Rs. 248 crore last year.

PTI