Reports suggest that a committee headed by union finance secretary RS Gujral would soon meet to deliberate on the conversion of its loan toIndustrial Finance Corporation of India  (IFCI) into equity.
 
 IFCI owes Rs 523 crore to government and the finance ministry is in favour of converting the debt into equity and it is expected that a decision would soon be taken.
 
 According to estimates, the government will get over 40 percent equity stake in IFCI, in which state-owned insurers and banks hold a 29.3 percent stake.
 
 IFCI, which was established in 1948, has off late been plagued by allegations of financial and functional mismanagement. In September 2011, the Supreme Court issued notice to the central government on a plea challenging the appointment of Atul Kumar Rai as CEO and MD of IFCI in 2007 despite his alleged involvement in "serious corrupt practices". 
 
 Rai secured a second five-year term as the head of the financial institution despite stiff opposition from the two government nominees on its board.