In a move that could lead to public sector companies participating in the government's sell-off process, the core group of secretaries on divestments recommended that multi-state fertiliser co-operatives be allowed to bid for state-owned companies.

The next meeting of Cabinet Committee on Divestment is expected to ratify Wednesday's decision of the secretaries' panel, a senior government official said.

The move comes at the insistence of the ministry of chemicals and fertilisers that had been insisting that cash-rich fertiliser cooperatives Iffco and Kribhco be allowed to participate in the divestment process.

As per the September 7 CCD decision, public sector companies and cooperatives in which the central government owns above 51 per cent equity are to be kept out of the privatisation process, although the condition could be relaxed in "special cases."

The CCD is also likely to use the rider to allow Oil and Natural Gas Corporation and Gas Authority of India Ltd to participate in the strategic sale of downstream major Hindustan Petroleum Corporation Ltd.

Divestment Minister Arun Shourie had announced in the Parliament on Monday that the government had decided to go in for strategic sale of HPCL and public issue in the case of Bharat Petroleum Corporation Ltd.

In another decision, the core group recommended calling of the final price bids for Engineers India Ltd.

With the roadmap for the privatisation of HPCL and BPCL set to get government approval, the divestment ministry withdrew its reservations on selling the project consultancy firm.

Prospective bidders have already completed their due diligence in EIL. The next CCD meeting is likely to ratify the core group's decision and pave the way for inviting financial bids for sale of 51 per cent government equity in the next few weeks.

The core group also favoured allowing ONGC and Bharat Heavy Electricals Ltd to bid for EIL as the two public sector companies had carried out due diligence and could not be disallowed at this stage.