This means the strategic partner would be allowed to scrap the project in case basic economics of the project was altered. Official sources told PTI that the government has decided to allow the partner the freedom to review the project, as it would enable the government to realise greater revenue from the sale of equity.

The issue of what constitutes a change in basic economics has also been left to the discretion of the company. The move represents a climb-down from the earlier stand adopted by the Inter Ministerial Group (IMG) on HZL disinvestment asking the partner to leverage resources for the project.Government has decided to disinvest up to 26 per cent stake in the company. It currently owns 76 per cent stake in the company.

It has mandated international merchant banker BanqueNationale De Paris-Paribas (BNP-Paribas)to act as the global advisor for the process.As per the preliminary information memorandum, the bidders are required to have a turnover of Rs 650 crore and a net worth of Rs 350 crore.

The PIM also permits the bidders to form consortiums tobid for the stake. The new smelter was proposed to be set up at Kapasan in Rajasthan at an estimated cost of Rs 1250 crore with a capacity of 100,000 tonnes.