Incorporated in Jan.'89, Steelco Gujarat is promoted by SPICA Investments, Mauritius, belonging to Chanderias (the NRI group), and Essar Gujarat (11% stake). Steelco was set up to implement a Rs 186-cr project to produce cold-rolled coils and flat-rolled products (inst. cap. : 2 lac tpa). The project part-financed by an issue in Aug.'93, was delayed by six months resulting in a cost overrun of Rs 30 cr. The company has been producing cold-rolled products since Apr.'94 and is yet to take up the production of more value-added products like galvanised sheets. The company has a technical collaboration with Hitachi, Japan, for setting up a cold-rolling mill with performance guarantee and for training all the employees of the company. Steelco has a technical support agreement for an electrolytic cleaning line with Nippon Denro, Japan. The company was referred to BIFR in 1997-98. BIFR has decalred the company as a Sick Company and has appointed ICICI as an operating agency. ICICI, the OA, has submitted its report to BIFR, a draft scheme of rehabilitation of the comany, which is under consideration by the FIs/Banks.