Centre to drive out of Maruti

NEW DELHI: Will the government finally get out of the business of making cars? Looks like it, with the heavy industries minister Santosh Mohan Deb making it clear on Monday that he is all for the government offloading its remaining 10.24% stake in Maruti Udyog Ltd (MUL).

This stake, the last remaining vestige of control the government has over India’s largest car maker, is held through the ministry of heavy industries.

“We have offered to the finance ministry to sell a 10.24% stake that the government has in Maruti. Now, it is up to them to take the call,” Deb said. Based on current scrip prices, the government could end up raising as much as Rs 2,500 crore. Deb’s announcement comes about a year after the government brought down its equity in MUL by 8% and, at that time, too, he had made it clear that the government will ultimately exit Maruti by 2006.

The government’s exit, if it happens in 2007, will come just as the carmaker is chalking out mega growth plans, which include entry into the diesel segment.