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The two firms are part of only five corporate investors that had shown interest in snapping a controlling stake in Zisco in the latest process to revive the steel maker whose operations were grounded by financial distress.

Jindhal Steel and Power of India and Sovereign Capital-a consortium of local and South African investors-are also in the running for the coveted stake in Zisco.

South African steel making giant Arcelor Mittal is out of the race to acquire the dormant steel making firm as it did not resubmit its bid despite collecting documentation used by investors for expression of interest.

Industry and Commerce Minister Welshman Ncube confirmed last week that Sino-Zimbabwe, Essar Holdings, Jindhal Steel and Power and Sovereign Capital were vying for Government’s stake in Zisco to revive the firm.

Minister Ncube said his ministry had since forwarded recommendations to President Mugabe, Prime Minister Morgan Tsvangirai and his deputy Prof Arthur Mutambara.

“We have submitted recommendations to the three principals and they are yet to respond and until then we will be waiting to see what direction to take,” he said.

Initially, six firms namely Arcelor Mittal, Jindhal Steel and Power, Reclamation (South Africa), Murray and Roberts (South Africa), Steel Makers Zimbabwe and Gateway-a consortium of local and South African investors had submitted proposals to buy and revive the ailing steel maker.

Jindhal Steel and Power, in partnership with Gateway and Arcelor Mittal had been shortlisted for the Zisco stake, but their bids were thrown out after the Presidency expressed concern conglomerates tended to dictate terms. New selection criteria had to be crafted, which would ensure that a medium size partner would be chosen in efforts to bring the steel maker back to life.

However, two of the firms that have submitted bids, Jindhal Steel and Power and Essar Energy Holdings appear to possess similar characteristics to those initially dismissed bids.

Essar Energy Holdings operates a number of subsidiaries involved in the exploration, production, retailing and refining of petroleum products and consumable fuels and the firm has an estimated market value of US$10 billion.

Essar Energy Holdings, a subsidiary of Essar Global Limited, is planning an Initial Public Offer on the London Stock Exchange and seeks to raise US$2,5 billion to fund acquisition of coal mines to ramp up power production. Jindhal Steel and Power, part of the Jindhal Group, is India’s second largest manufacturer of sponge and iron with market capitalisation of US$16 billion. It has interests in steel, power, oil, gas, mining and infrastructure. Sino-Zimbabwe Ltd is a joint venture cement-manufacturing project between CBMC of China and Zimbabwe’s Industrial Development Corporation.