Harare — Indian steelmaker, Jindal Steel and Power Limited is mulling plans to re-bid for a controlling stake in the Zimbabwe Iron and Steel Company.

According to the Economic Times news-paper of India, Jindal Steel has revived its interest in acquiring 70 percent of Zisco Steel.

"Jindal Steel renewed its offer after the Zimbabwe Government recently invited fresh bids for selling 70 percent equity stake in the state-run Zisco which also owns iron ore reserves of 100 million tonnes.

"Worries over Zisco's high debt of US$300 million may be behind the second offer for a controlling stake sale," said people connected with the development, according to the paper.

Jindal Steel and Power's deputy managing director Mr Sushil Maroo also confirmed the company's renewed interest to Bloomberg News.

"Right now we can only say that we have an interest and that we will bid."

The Zimbabwean Government has since re-determined the bidding criteria and re-opened for the disposal of its 70 percent stake in Zisco, with the deadline for offers submission set for September 24.

It is not clear whether the new bid by Jindal Steel will be re-considered on the basis of the new bidding criteria. The Indian firm is the country's second largest steelmaker in terms of market value.

The Ministry of Industry and International Trade has indicated that the previous rejected bids of big multilaterals would not be re-considered, including the world's largest steelmaker Arcelor Mittal, Murray and Roberts, Reclamation, and Gateway Overseas Consortium.

The Government has said that it is look- ing for a medium-sized investor to snap up the Zisco stake saying a takeover by a huge multilateral company would be overwhel- ming.

Economic experts contend that it is more practical for a huge multilateral to take over Zisco in view of the company's considerable arrears.

The Government has on two separate occasions called upon both local and foreign firms to take up its stake in Zisco, which, at its peak, stood as the region's biggest integrated steelworks outside South Africa.

Zisco has an installed capacity to produce one million tonnes of steel per year and is essential to the country's economic recovery. Barring the sluggish take-up, Zisco has been targeted to be the first state-run company for disposal and/or restructuring.

The New Dehli-based Jindal Steel & Power, which is currently seeking to extend its presence on the African continent through the Zisco deal, has secured a number of foreign acquisitions in recent years.

Earlier this year Jindal Steel purchased Oman-based Shadeed Iron & Steel for US$464 million. It also concluded the purchase of a thermal coal mine in South Africa last year.