The government has invited financial bids for privatisation of Hindustan Copper Ltd even as uncertainty clouded the divestment of the copper major, acquired partly through nationalisation route.
Bidders have been given a month's time to submit the financial bids, sources associated with the deal said.
Suitors for the copper major would be required to submit an earnest money deposit of Rs 5 crore (Rs 50 million).
However, the fate of the bidding process for the divestment seemed unclear as the company's Ghatshila complex located in Jharkand mining belt was acquired through the Parliamentary route.
The Indian Copper Complex at Ghatshila on the Bengal-Bihar border houses three copper mines and a smelter. The company has already decided to shut down the mines leaving the smelter to function.
Sources said the players vying for stake in the company had been made aware of the facts relating to acquisition and the divestment ministry had not called off the bids in view of the Supreme Court decision on public sector oil companies.
The Supreme Court had on Tuesday disallowed the government from proceeding with sale of equity in oil PSUs HPCL and BPCL arguing legislative approval was needed as the two companies were acquired through an enactment.
The government proposes to sell its entire 98 per cent equity in the copper company to a strategic partner along with management control.
Birla Copper and Sterlite Industries are in the fray for acquiring controlling stake of HCL where A F Ferguson have been mandated to act as global advisors.
The government had only last year aborted an earlier attempt at privatising the company following a lukewarm response from the suitors where it was proposed to hive off the company into two units.
It had instead opted for fresh round of bidding following a restructuring exercise. Not content with changes, the bidders demanded a fresh round of restructuring which was promptly turned down by government.
The government proposes to impose a three year lock-in period for prospective owners during which they would not be able to sell off the stake to a third party.
The Cabinet Committee on Divestment had in July this year approved transaction documents for the sale paving the way for financial bids following which the law ministry had last week vetted the documents.