As many as six merchant bankers including UTI Bank are in the fray for a government mandate to act as advisors for the privatisation of Mineral Exploration Corporation.

UTI Securities along with IFCI and Capital Fortune, a company actively engaged in advising Andhra Pradesh government on the sale of state-owned undertakings, also figure in the list of contenders for appointment as global advisors, sources said.

Financial bids for appointment had closed late last month. Inter-ministerial group on divestment is slated to meet this week to select the advisors, paving the way for initiating the process of divestment.

The recommendations of the group would then be forwarded to Divestment Minister Arun Shourie for approval, the sources added.

Cabinet Committee on Divestment at its last meeting in July approved sale of 100 per cent stake in the company. The panel accepted a proposal from the mines ministry favouring sale of entire equity as opposed to the divestment ministry's proposal for sale of 51 per cent.

In July 2000, CCD while approving in-principle privatisation of the company had decided to defer the sale for three years on the ground that steps would be taken to strengthen the company through grant of mining rights.