The due diligence exercise has started even as the Balco disinvestment issue remains unresolved.

As per time table chalked out for the due diligence exercise, Allied Deals would be given three days time for carrying out an inspection of the mining and other production facilities of HZL.

Similarly, three days would be given to Bhushan Steel to examine the data room of HZL set up at Udaipur. Immediately after Allied finishes its site visit, Bhushan would be asked to complete the process of examining the data room.

In order to restrict the length of the entire process government has decided to allow bidders to visit only two smelters and three mines. Site visits to the other facilities would be allowed only at the request of the concerned parties.

The three mines identified for this purpose include the prized Rampur-Agucha mine, Zawar group of mines and Rajpura Derbari mines in Rajasthan.

Official sources said the two bidders have been asked to start the due diligence exercise together to cut short the time in view of the large number of bidders for HZL.

Government has decided to offload 26 per cent stake in the zinc major to a strategic partner thereby bringing down its stake to 49 per cent.

It has mandated Banque Nationale De Paris- Paribas (BNP-Paribas) to act as global advisor for the process.

Government has shortlisted nine players including steel baron LN Mittal and domestic players Birla Copper and Sterlite Industries, which recently took over the Balco.

International mining giants like Phelps Dodge and Glencore have also evinced interest in picking up stake in HZL along with other domestic companies like the Jindal Group.

Industry analysts have questioned the government's move to allow non-serious players in the race.