After failing to attract any bidders for Hindustan Copper Ltd (HCL), the ministry of disinvestment is now proposing to rework the deal and offer 74 per cent or more of equity stake in the company to a strategic partner. The government holds 98.76 per cent stake in HCL.

The asset value of these two units was to constitute HCL's 49 per cent stake in the company and the strategic partner was expected to bring in the remaining 51 per cent.

The second phase, comprising the Indian Copper Complex at Ghatshila in Bihar and the Malanjkhand project in Madhya Pradesh, was to be restructured by closing down unviable mines in a phased manner and introducing a voluntary retirement scheme to remove the excess manpower.

Four companies had submitted expressions of interest for phase I. However, of the 3 qualified interested parties left in the fray, none were interested in proceeding with the deal as it was, say officials.

The disinvestment ministry, therefore, is reworking the deal in order to improve bidder interest. The ministry of mines is also working on a restructuring package of over Rs 300 crore for the company.

This package is expected to be sent for the Cabinet's approval soon. Once the Cabinet clears the package, the disinvestment ministry will go to the Cabinet Committee on Disinvestment with its new proposal, say officials.

International copper prices have been low for quite a while and short term gains are expected around February and March next year.

However, analysts do not expect a major upturn till mid-2003. The company made a loss of Rs 147.46 crore and had a net worth of Rs 5.53 crore in 1999. The Khetri copper complex has an ore capacity of 19.5 lakh tonne and a smelter capacity of 31,000 tonne.

The Taloja plant houses the continuous cast copper rod plant and has an annual capacity of 60,000 tonne.

The Indian Copper Complex has an ore capacity of 12.6 lakh tonne and a smelting capacity of 16,500 tonne, while the Malanjkhand mines have a capacity of 20 lakh tonne.