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Panel advises against global bid for Maruti stake sale

A panel of top bureaucrats has advised the Indian government not to invite global bids for the proposed sale of the state's 50 per cent equity in India's largest carmaker Maruti.

Instead, it has asked the ministry of industry to seek out a prospective buyer without going through the bidding process, a government official, who did not want to be identified, said.

Japan's Suzuki Motor Corp. and the Indian government are equal partners in Maruti, which controls 54.5 per cent of the Indian market -- down from more than 80 per cent two years ago.

Indian Divestment Minister Arun Shourie told Parliament last month that his ministry would ask Suzuki to give it a list of acceptable partners.

The Indian Cabinet had decided in November to seek the recommendations of the government panel regarding options for the Maruti sell-off.

Indian companies such as Bajaj Auto, Asia's largest two-wheeler manufacturer, have already expressed interest in buying the stake.

Maruti has known cash reserves of Rs 10 billion and Hong Kong-based consultancy firm Roland Burgers puts the brand value of Maruti at over Rs 20 billion ($435 million).

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