Thursday, June 29 2006 13:30 Hrs (IST) - World Time -

Islamabad: Having kept out Mittal, Essar and Global Steel from a bid to purchase the state-owned Pakistan Steel Mills (PSM), Pakistan has said it has ensured that there is no front man for any Indian group in the competition.

Pakistan's Privatisation Commission Wednesday denied knowledge of any bidder acting as a front man for an Indian group interested in purchasing the PSM.

Zahid Hamid, the privatisation minister, told journalists that the commission had banned three Indian groups from the bidding process.

"We don't have knowledge of someone playing as a front man for an Indian group. In case we had such information, that bidder would have been banned from taking part in the bidding," Hamid said.

He said three groups Mittal Group headed by London-based L.N. Mittal, Essar Group and Global Steel had applied to take part in the PSM bid but none of them was allowed to, Daily Times reported.

According to the report, two of the groups were Dubai-based but were barred from the process owing to their Indian origin.

The Mittal factor had been brought in during final arguments before the Supreme Court that heard a petition against PSM's sale to a consortium. It was told that a Russian firm that was part of the consortium was "likely to be taken over" by L.N. Mittal.

The court had last week asked counsel to stick to the main issues of the case before scrapping the deal.

Hamid defended the privatisation process in the country and observed that the Supreme Court had also upheld the process in its recent judgment striking down the sale of the PSM. He claimed the process was fair and transparent.