In its eleventh report to the Government, the commission recommended closure of the Mineral Exploration Corporation (MECL) as one of the three options.

The other two options are outright sale or sale of majority stake after the company succeeds in getting prospecting licences for mining.

With this, the commission, headed by GV Ramakrishna, has given its recommendations on 49 public sector undertakings for divesting government equity.

In the case of MSTC, the commission recommended sale of 100 per cent of government equity along with the corporation's holding in Ferro Scrap Nigam (FSNL).

The commission said that MSTC had no `meaningful rationale' for continuing in scrap trading/disposal business as it could be easily performed by the private sector.

It was further pointed out that incase there was no investor interested in the company, it would have to be closed down and its assets and liabilities liquidated.

The commission recommended disinvestment of 100 per cent of Government equity in SIIL after writing off government loans and accumulated interest. SIIL is engaged in production of sponge iron, which is one of the primary inputs in making steel.

The report stated that cleaning up of the balance sheet of SIIL would result in better valuation of the company. In order to attract investor interest in the company, the commission also suggested a simultaneous move to reduce manpower through a voluntary retirement scheme (VRS).

In Mecon, the commission recommended strategic sale of a minimum of 51 per cent equity stake along with appropriate role in management.

The commission said that a strategic partner would be able to add to Mecon's strength in terms of Technical Consultancy and Lumpsum Turnkey (LSTK) capabilities and would help the company to enter non-steel andinfrastructure sectors.

The selection of strategic partner should be done on the basis of global competitive bids and the company should simultaneously undertake reduction in manpower, the commission said.

In the case of MECL, the commission said, the company should be allowed to continue its operations and apply for prospecting licences before selling 51 per cent Government equity as the first option. t said that the remaining stake could be offered to the public after the company became commercially viable.

The other two options given to the Government on MECL are 100 per cent sale on as is where is basis or closure.

The commission, whose term is ending on August 22, has to give recommendations on five more PSUs which include Bharat Heavy Electricals Ltd (BHEL), Rashtriya Chemicals and Fertilisers (RCF), Vishakapatnam Steel Plant (VSP), Hindustan Organics and Hindustan Insecticides.

According to commission officials, the 12th report was likely to be submitted to the Government by the middle ofnext month.