``The acquisition of the cold rolling unit of Jindal Strips at Vasind under the proposed scheme of arrangement has been since reconsidered and after a careful review of all the relevant factors and the prevalent business conditions, the scheme in the present form as proposed would not be implemented,'' said a company statement.

It is learnt that financial institutions were against the scheme as there was no cash generation under the scheme. Earlier, Jindal Strips planned to sell the unit for Rs 76 crore but an outright purchase would result in huge stamp duty payment.

``This is not the first time that the Jindals are trying to merge and demerge group companies. Several group companies and units were either merged or demerged several times in the past with no addition toshareholders' value,'' said an official of an institution.

Alarmed over the disturbing trend of corporates to avoid loan repayment, financial institutions recently decided to block the sale of the Torrent Power's stake in Gujarat Torrent Energy Corporation to PowerGen of the UK. The reason is that the Torrent group company owes around Rs 20 crore to institutions. Instead of paying up the funds, the Torrent firm is taking shelter under the BIFR cover, upsetting the institutions.

Meanwhile, the net profit of Jisco fell steeply from Rs 31.24 crore to Rs 10.80 crore for the year ended March 1999. As a result, the company has slashed the dividend from 20 per cent to 10 per cent.