These four companies have sent the information memorandum relating to the oxygen plant on June 16. Subsequently, these companies are expected to start the due diligence exercise soon. State Bank of India Caps (SBI Caps) has been appointed as the merchant banker for the purpose. The merchant banker had received expression of interest from four companies in response to a global tender floated in April 2000 for a strategic alliance partner.

The due diligence involves the study of all documents and assets relating to the unit as well as the physical assessment to arrive at independent valuation estimates.After the evaluation of the unit, the companies are expected to submit their price bids by July 30.

The entire process of the selection and participation of the strategic alliance partner is expected to be completed by November 30.Sources said the equity structure would be worked out later after negotiations with the foreign company and "SAIL does not have any problems being a minority partner, if the case demands." SAIL has also proposed disinvestment in non-core areas such as power plants, alloy, special steel and fertilisers.

SAIL is disinvesting its stake in subsidiaries including Tisco, Salem Steel Plant and Visveswaraya Iron and Steel Ltd at Bhadrawati and Alloy Steel Plant at Durgapur. These divestments will be completed over a three-year period. Regarding Salem Steel, SAIL has invited bids through a global tender. Those in the race include SMS Demag of Germany, British Steel subsidiary -- Avesta Sheffield, Jindal Strips, Tata Steel and Shah Alloys.

SAIL had received government nod to divest its stake in seven ventures as part of restructuring package in February which also waived government and steel development fund loans to the company to the tune of about Rs 5,454 crore besides other financial assistance. ported a 9 per cent increase in its income to Rs 16,250.16 crore in 1999-2000 from Rs 14,963.18 crore in the previous year. The company recorded a net loss of Rs 1,720 crore for the whole year ended March 2000, lower than the net loss for the three quarters in 1999-2000 at Rs 2,065 crore.