The government has fixed a minimum net worth of Rs 2,500 crore (Rs 25 billion) for companies bidding for 34.01 per cent government stake in Hindustan Petroleum Corporation Ltd.

According to the preliminary information memorandum issued by the divestment ministry on Friday, the net worth criteria will be applicable to individual companies as well as consortiums submitting expressions of interest.

The memorandum also said that the government will keep in mind the country's security while selecting the prospective strategic partner for HPCL.

The EoIs called for bid on Friday, while March 17 has been fixed as the last date for submission of expression of interest with Indian companies, overseas corporate bodies, foreign companies -- subject to obtaining statutory approvals -- eligible to bid.

Government officials indicated a six to eight month timeframe for completion of the divestment process in the company.

In case of a consortium, the government has said that the financial parameters of the lead bidder must be at least 51 per cent of the Rs 2,500 crore net worth criteria stipulated by it.

Further, the net worth of only those members of the consortium would be counted who propose to take at least 10 per cent equity in the company promoted by the consortium.

The government is in the process of appointing the merchant banker for HPCL divestment.

Over a dozen merchant bankers, who had earlier submitted bids for being appointed as advisors to the government, would make presentations to the divestment ministry from February 17.

The memorandum also said that the strategic partner may be required to make an open offer to acquire government's shares in HPCL in accordance with the terms of the Takeover Code.