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Indo Gulf says bids for Hind Zinc stake

Indo Gulf Corporation, a part of India's diversified Aditya Birla group, said on Thursday it has bid for a stake in state-run Hindustan Zinc Ltd.

The government, which owns 75.92 per cent of Hindustan Zinc, is selling 26 per cent as part of privatisation process. The last day for the bids was Wednesday.

"We have bid for the firm," an Indo Gulf spokeswoman told Reuters, but declined to give details.

Local newspapers said copper and aluminium maker Sterlite Industries also put in a bid, but its finance director Tarun Jain, reached by Reuters, declined comment.

The reports said the Cabinet Committee on Divestment was expected to meet on March 28 to consider the price bids and declare the winner.

Government officials were not available for comment.

This is the second attempt by the government to privatise Hindustan Zinc, India's largest zinc and lead producing firm.

In November, the government rejected the only bid submitted by Sterlite, saying the amount offered was below the reserve price. But, it did not reveal the reserve price or the amount offered by Sterlite.

The government later made some changes in the offer document to attract more bidders.

Newspapers said only two companies had put in bids.

Earlier reports said other companies in the running included Bhushan Steel and Strips Ltd, international mining company Phelps Dodge Corp along with UK-based Metdist and Zurich-based commodities group Glencore International AG.

Hindustan Zinc has six lead-zinc mines with a combined annual capacity of 3.49 million tonnes a year. It runs four smelters with an annual capacity of 169,000 tonnes of zinc and 43,000 tonnes of lead.

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