Search the Internet           Tips

Suzuki begins talks with govt on MUL sell-off

Representatives of Suzuki Motor Corporation have begun discussions with government on divestment in the joint venture auto company Maruti Udyog Limited, where the two partners have 50 per cent equity each.

After consultations with their headquarters in Japan, SMC representatives met government officials here yesterday in connection with the latter's proposal for divestment in MUL, official sources said in New Delhi on Thursday.

A high-level team of SMC is also understood to have arrived in Delhi on Thursday for continuing the dialogue, sources said, adding that "SMC communicated its willingness to discuss and we are positive about their response."

Junzo Sugimori, SMC's representative and director in MUL, was not immediately available for comments.

Cabinet Committee on Divestment had decided earlier this month to constitute a committee of secretaries (CoS) to explore all possibilities with SMC for optimal divestment in MUL.

"SMC team is open to discussions on the various alternatives available to the government to divest its stake in the joint venture company," sources said, while pointing out that government had given at least five alternatives to the Japanese partner on the issue.

Another round of discussions is slated to take place in a day or two on the same issue, sources added.

The terms of the JV agreement stipulate that both parties have to seek the written consent of the other party before effecting a change in the shareholding pattern in the company, which currently has about 55 per cent share in the country's car market.

Tell us what you think of this report