Calcutta, June 4 :     The Titagarh Industries Ltd (TIL) has decided to raise equity-linked funds worth Rs 90 crore through private placement route in order to revive its two ailing paper mills. Sources said the decision had been taken after the financial institutions (FIs) had asked the company to bring the equity immediately, which was needed to start operations in the two mills.Both the paper mills have been closed for the past 11 months. The company, promoted by J. P. Choudhary, has initiated negotiations with 'a couple of' multinational paper majors and is hopeful to clinch the deal within a short time. FIs, including, IDBI, IFCI and ICICI, had extended loans worth Rs 160 crore to TIL to part finance the Rs 275 crore revival project of the Titagurh Paper Mills (TPM). BIFR approved the loans in 1995-96.While TIL injected Rs 20 crore into the company from internal generation, a sum of Rs 90 crore was intended to be raised through a public issue. But with the depressed state of the capital market, TIL could not raise the fund and the interest on the borrowings were getting accumulated sharply. A senior TIL official said the interest accumulation has gone up to over 50 per cent of the total borrowings. 'We are now desperately looking for a foreign company to fund the equity so that we can start operations,' the official said. The TPM has a capacity of producing 77,000 tonnes of writing, printing, security and bond papers per annum. Earlier, the company had planned to sale the second mill. It had appointed Ernst & Young to find a buyer.It had also planned to use the sales proceeds for modernising the first mill. However, with the paper industry witnessing growth since early this year, TIL shelved the plan to sale the mill and instead looked for reviving the same. The official further pointed out that after the deal is clinched, the company would be able to reopen the mills within a year.