Consultancy firm Arthur Andersen, which was roped in to give its recommendations on the consolidation issue, has already tabled the report before the company. However, details of the report are not available. According to sources, the decision to bring the aluminium businesses under a single umbrella would be reviewed once the disinvestment on Balco is through. Sterlite was considering the option of consolidating its aluminium businesses following expansion plans by Madras Aluminium Company (Malco), and Sterlite's bid for Balco. The decision was also contingent to its bid for Balco succeeding. The race for Balco is being hotly contested by three major players - the Aditya Birla group company, Hindalco Industries, Sterlite Industries and US-based Alco, one of the world biggest aluminium companies.

Balco has a capacity to produce two lakh tonne of alumina and one lakh tonne of aluminium per year. It has a 15 per cent domestic market share and turnover of over Rs 900 crore. Vertically integrated, the company has captive bauxite mines and refining and smelting plants. Sterlite's plans to consolidate its aluminium businesses are also expected to impact the proposed merger of Malco with it - which was also under consideration.

Meanwhile, the promoters of Sterlite Industries, who have put in their bids for Pennar Aluminium Company (Palco) in their personal capacity, have been asked to revise the bids by the operating agency IDBI. This has further delayed the process.