Aditya Birla Group has shown interest in buying the 98.5 percent stake offered by the Government in HCL. The other contender is Sterlite Industries Limited. Both have a capacity of 150,000 each and the capacity is enough to meet the demand of the country for refined copper.Birla Copper has announced concrete plans to add at least another 70,000 tons in a new brownfield smelter which will adopt new technology. The company is considering doubling its capacity by adding 150,000 tons but these plans are not definite yet. The government's policy of lowering the import duties in a phased manner is the factor that is stalling Birla Copper's plans. With the Government trying to bring down the import duty on copper, it has already been brought down to 25 percent from 35 percent, with further threat of going down to 20 percent, it would be worthwhile for both to have a hold on a local producer who is integrated from the ore to refined stage and HCL fits that bill.
NSTL
