The inter-ministerial group is meeting on February 14 to finalise the transaction documents for National Fertiliser Ltd. Prospective bidders are likely to be invited to submit their expressions of interest this month.

The group would finalise the shareholders' and share purchase agreements along with the draft confidentiality pact with prospective bidders, a senior divestment ministry official said.

The Cabinet Committee on Disinvestment had decided on December 27 to begin the sell-off process in NFL afresh because the new fertiliser policy had pushed up the company's valuation substantially. The initial bids were called last year.

The official said bidders would have to take into account the Rs 210-crore (Rs 2.1-billion) relief for the company from the new fertiliser policy. In addition, a Rs 450-crore (Rs 4.5-billion) loan to Madras Fertiliser Ltd has been settled in favour of NFL.

The Cabinet had also decided to make an exception to its earlier decision on keeping public sector companies and state-owned co-operatives out of the divestment process by allowing cash-rich Iffco and Kribhco to participate in the sale of fertiliser companies, including NFL, Rashtriya Chemicals and Fertilisers and Fertilisers and Chemicals Travancore.

At present, the government holds 97.65 per cent equity in NFL and intends to offload 51 per cent in favour of a strategic partner.

Four bidders - Zuari Agro, Indo Gulf, Chambal Fertiliser Ltd and the Oswal group - had earlier shown interest in taking up management control in the public sector company.

NFL had posted a net profit of Rs 48.33 crore on a sales turnover of Rs 2,943 crore (Rs 29.43 billion) during 2001-02 and declared a 20 per cent dividend. The company's reserves at the end of the last financial year were in excess of Rs 1,000 crore (Rs 10 billion).