New Delhi: The Indian government will sell its remaining 10.27% stake in car maker Maruti Udyog Ltd in the next financial year beginning 1 April, the finance minister said on Monday.
The cabinet has approved the plan for a stake sale in the firm which is restricted to banks, financial institutions and Indian mutual funds. Maruti is 54.2% owned by Japan’s Suzuki Motor Corp.
“The government has decided to do it in the next (financial) year,” Finance Minister Palaniappan Chidambaram told reporters when asked about media reports the government had put on hold its plan to sell the stake.
Ministers have also approved the appointment of SBI Capital Markets and Kotak Mahindra Capital Company Ltd as advisers.
Maruti, India’s largest carmaker with about half of the country’s passenger vehicle market, competes with the Indian arm of Hyundai Motor Co. and Tata Motors Ltd.
Maruti was an equal joint venture between the government and Suzuki when the previous administration began selling its holding as part of efforts to exit non-core sectors of the economy.
The ruling Congress-led coalition put all decisions to sell stakes in state-run firms on hold in July after a key ally threatened to pull out.