Government to completely exit Maruti | india | Hindustan Times
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Government to completely exit Maruti

india Updated: Aug 21, 2006 23:06 IST
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The Government has initiated the process of selling all its holding in Maruti Udyog Limited to raise more than Rs 2500 crore.

"We have offered to the Finance Ministry to sell 10.24 per cent stake that the government has in Maruti. Now it is up to them to take the call," Heavy Industries Minister Sontosh Mohan Dev said on Monday.

The Government stake in the company is held by Ministry of Heavy Industry.

Based on current market price of company's scrip on the stock exchanges, the Government is likely to raise over Rs 2500 crore. As all disinvestment in public sector companies is off for now, sale of shares in erstwhile PSU Maruti will offer much-needed resources to the Government.

Last year the Government had sold 8 per cent shares in Maruti for more than Rs 1,567 crore to public sector financial institutions.

At that time itself Government had announced that it would completely exit the company in 2006. The Government's holding in the company has come down to 10.27 per cent and it no longer has a director on the board of the company.

Dev also said the Prime Minister has agreed in principle to release Rs 138 crore for liquidating the salaries and other statutory dues of PSUs under the Ministry of Heavy Industries.

This Rs 138 crore is part of the Rs 350 crore package for the same reason for all the PSUs.