Maruti staff to get 0.01% govt stake

Cabinet panel also clears livestock insurance scheme.

The Cabinet Committee on Economic Affairs (CCEA) has approved the transfer of 0.01 per cent shareholding in Maruti Udyog Ltd (MUL) to the company's employees for Rs 2.625 crore.

It has also okayed a pilot livestock insurance scheme for 100 districts and financial assistance of up to Rs 15 crore to the Engineering Export Promotion Council for organising the country's participation in the Honnover Fair to be held in April.

The CCEA approved the sale of 39,777 equity shares in the MUL to employees, after which government holding in the company would fall to 10.27 per cent from 10.28 per cent at present.

"There will be no lock-in period and the transaction will be completed by February end or early March," Finance Minister P Chidambaram said. Out of 3,596 eligible employees, 1,994 have conveyed their willingness to avail of the offer.

The livestock insurance scheme aims at providing protection to cattle rearers from untimely livestock loss. The targets set for the scheme, to be implemented during 2005-06 and 2006-07, are to insure 15 lakh animals with an estimated expenditure of Rs 120 crore.

The scheme will be 50 per cent subsidised, with the Centre bearing the total subsidy cost. A maximum of two animals per beneficiary will be allowed with a one-time insurance for one animal for a maximum period of three years.