Financial bids for privatisation of Hindustan Copper are likely to be delayed further with the government asking the management to sort out the issue of sovereign guarantees to bond holders and seeking more information from the company on environment matters.
The inter-ministerial group on divestment, which met recently, decided to ask for details regarding environmental clearances, sources said.
On the issue of outstanding debts, the meeting took note of the issue of guarantees extended by the government towards bonds raised by the company some years back.
Bond holders would continue to enjoy the security of government guarantee only till the time that the company remains in the public sector fold.
The company's chairman and managing director B K Menon has been asked to seek the consent of the bond holders as they stand to lose protection. Bond holders may be permitted to seek alternative arrangements by way of substitution of existing guarantees.
The meeting, which took stock of the progress towards calling of financial bids also wanted clarifications on pollution norms.
HCL is likely to provide the information by month-end paving the way for financial bids. Earlier, the government was hopeful of inviting bids for the company by July end, which got delayed, as the ministerial group was unable to wind up the proceedings before bids were to be called.
