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Maruti to offer shares of Rs 4 bn to banks, FIs

Maruti Udyog Limited would offer shares worth Rs 4 billion as rights issue to banks and financial institutions as part of divestment this year, Union minister for heavy industries Manohar Joshi said on Wednesday.

This accounts for 10 per cent of 49.5 per cent shares of the government in MUL while 50.5 is held by Japanese motor giant Suzuki, Joshi told reporters in Nagpur.

"If banks and financial institutions in the country don't come forward, the same will be offered to the partner company (Suzuki)", the minister said.

On the general divestment scenario, Joshi said he had submitted a 'road-map' on the subject to the cabinet for consideration, which would decide the number of loss making units out of 47 public sector companies under his ministry to be taken up for divestment each year.

Out of 240 PSUs 100 were incurring huge losses to the exchequer and the government has finally arrived at a conclusion that 'it is no more the government's business to run a business', Joshi quipped. The strategy also includes restructuring and disposing of the units.

However, strategic industries like defence production units and railways will not come under the purview of divestment, he clarified.

By and large, workers were now accepting the voluntary retirement scheme, he claimed, citing the example of HMT, Bangalore, where 6000 employees out of a total workforce of 19,000 have opted for VRS.

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