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The Indian Iron and Steel Company (IISCO) modernisation proposals have been abandoned umpteen times midway after snags developed over one issue or the other during the past few decades. In fact since 1977 discussions made considerable headway over 11 such proposals but in most cases either the Government of India or the Russian Company. TPE did not agree on the pattern financing of the renovation plan. The Russian firm of the Russian government has an added advantage. They have a rupee fund in India, which can be, utilize for financing the revival plan. Although the present Russian government is in dire need of hard currency the concerned company though likes to be paid in dollars, the revival plan can be funded from the rupee-ruble escrow fund. The Rs. 2,100 crore plans will of course have to get the Russian government's approval.

IISCO is losing around Rs. 400 crores a year and implementation of the revival plan cannot be delayed any further. The SAIL Chairman, Mr. A. Pande has already announced they cannot provide funds for running IISCO any more as the SAIL itself has sustained a loss of Rs. 1573.66 crores in 1998-99. The BJP Government though allocated Rs. 100 crore for IISCO this year, it has already announced that no provision will be made for IISCO in the next year's budget. In reality the BJP government has decided to close down IISCO. In November last year at the meeting of the joint Commission of Russia and India held in Moscow TPE agreed to finance 48% of the Rs. 2,107 crore revamp plan and it was also agreed that Sail would retain 51% of the IISCO shares. In the TPE's newest plan it wants to invest the minimum of funds in the first phase of the work. The Company is willing to invest around Rs. 800 crores in the first phase. But everything will depend on the government of the two countries. Private entrepreneurs are now conducting the trade between the two countries. They are opposed to the escrow fund being used for revamping IISCO. They want the payment made in hard currency. The influence of these entrepreneurs on their respective governments is immense. Everything will depend how sincere the two governments are in matter of reviving IISCO.