Official sources said that Phelps Dodge of the US, leaders in the copper industry along with its associates, is also in the contention for acquiring 51 per cent equity stake in the copper major, listed for privatisation during the current financial year.

The government is soon expected to shortlist the players for bidding in the PSU. The government is currently in the process of finalising modalities for divestment in consultation with the global advisor. Under the first phase of divestment, the government would hive off two of the profitable units of HCL into a separate company before divesting its stake.

The units which are proposed for divestment are the facilities at Khetri in Rajasthan and the downstream continuous casting facility at Taloja in Maharashtra. As per the preliminary information memorandum (PIM), the assets of HCL in the new company will form 49 per cent contribution of the company in the new entity. The remaining 51 per cent equity will be brought in by the strategic partner which would, in turn, acquire majority control in the entity.

The last date for expression of interest in HCL came to an end on October 20 and the parties are expected to begin the exercise of due diligence once the government gives a go-ahead.

The government has appointed a consortium led by Industrial Development Bank of India and Sumitomo Bank to act as global advisors for the proposed disinvestment. Under the terms and conditions, only those companies having an annual turnover of not less then Rs 200 crore and a minimum net worth of Rs 50 crore will be allowed to bid for stake in the company.

(PTI)