Disinvestment ministry has recommended setting up of an inter-ministerial committee to hold discussions with Suzuki Motor Corporation (SMC) for divestment of government equity in joint venture Maruti Udyog Ltd (MUL).
A proposal to this effect is believed to have been sent by the department of disinvestment (DoD) for consideration of cabinet committee on disinvestment (CCD), headed by Prime Minister Atal Bihari Vajpayee.
The proposed committee is likely to comprise secretaries in the ministries of heavy industries, finance and DoD, sources said while pointing out that finance ministry has suggested that the committee be headed by cabinet secretary T R Prasad.
Sources, however, said that government has not decided to sell its 50 per cent stake to its equal joint venture (JV) partner SMC and the discussions with the Japanese company were needed due to one of the conditions of the revised JV agreement of 1992.
While selling 10 per cent of its equity to SMC to become equal partner, the government had also signed a revised JV deal.
