SBI Caps is also interested in the deal and is expected to submit the bids before the closing date of February 10. The centre is expected to announce the name of the advisor by February-end.

The centre had recently invited bids from reputed merchant bankers, consultants and investment banks who have successfully concluded a similar strategic sale.

Investment banking sources say that in the battle of bids, Goldman Sachs has history on its side--the bank had earlier been involved with IPCL's GDR issue as well as in its $175 million credit-enhanced foreign-currency convertible bond (FCCB) offering around two years ago.

The IPCL divestment is likely to break the government's disinvestment jinx which has seen a series of poor responses to public sector paper. Already such big names as Shell,Reliance Industries and Dow Chemicals have evinced a keen interest. These companies have made a presentation to the IPCL board.As they have common synergies with IPCL, transfer of management control may help them alter their plans based on their long-term strategies.

The global advisor will have to play a vital role as the government is transferring the management control to the new partner along with the divestment of a 26 per cent stake inIndian Petrochemicals Corporation Ltd.The centre has so far raised around Rs 950 crore through divestments in fiscal 1999, which is far short of the targeted Rs 5,000 crore. While the Gas Authority of India Ltd (Gail) disinvestment raked in Rs 184 crore, that of the Container Corporation of India (Concor) mopped up around Rs 225 crore.The disinvestment process in Indian Oil Corporation (IOC) is also expected to be over before this fiscal with the government expected to spell out the modus operandi for the sale of remaining 5 per cent in the company shortly.

Earlier,the government had announced its intention to sell 10 per cent through an equity swap exercise with Oil & Natural Gas Corporation (ONGC).Domestic investors, it is learnt, have cold-shouldered the Videsh Sanchar Nigam Ltd's (VSNL) equity offerings with the roadshows proving to be failures. The company is now only left with the option of tapping the global depository receipts (GDR) route for generating funds.