The board of directors of Duncan has given approval for the induction of Jaypee Fertilizers and Industries as a strategic investor.

It is important so that the fertilizer unit of Duncan situated in Panki, Kanpur can be revived and rehabilitated. This is in line with the plans of Duncan Industries as per which it will hive off its fertilizer unit.

A 50:50 JV between Jaypee Fertilizers and ISG Trader is going to buy the same. ISG traders is the investment arm of Duncan Goenka Group. Rs. 400 crore has been set aside as the paid-up capital for this purpose.

Talking to a private news agency, ET, Chairman of the group, G P Goenka said, "We, along with some professionals, are in the process of working out the debt-equity combination for the new entity. But nothing has been finalised as yet."

Now, the only approval that the whole deal needs is from the Board for Industrial & Financial Reconstruction (BIFR). And the same has not been done as of yet.

Now, the Duncam Goenka group hopes that it will soon file its revised draft rehabilitation scheme.