The Hindu Business Line : Heavy Industries Ministry nod to exit Maruti, Finance Ministry to take final decision

PSU TOP BRASS: (From left) Mr Proshanto Banerjee, Chairman & Managing Director, GAIL; Dr V.K. Garg, Chairman & Managing Director, PFC; Mr C.P. Jain, Chairman & Managing Director, NTPC, and Mr A.K. Puri, Chairman, BHEL, at the conference of chief executives of PSUs in the Capital on Tuesday. - Kamal Narang

New Delhi , Jan. 10

THE Ministry of Heavy Industries has given its consent for the Government to completely exit its shareholding in Maruti Udyog Ltd. The final decision is left to the Ministry of Finance, said Mr Santosh Mohan Dev, Minister for Heavy Industries.

At the sidelines of a conference of chief executives of public sector units organised by the Standing Conference on Public Enterprises (Scope), Mr Dev said, "We have toldthe Finance Ministry that it can sell the 10.24 per cent stake in Maruti that will be left. It is up to them to decide."

After completing the ongoing process of selling 8 per cent stake in Maruti, out of its current holding of 18.24 per cent, the Government will be left with a 10.24-per cent stake. The Government will soon offload 8 per cent in the company for which about 30 bids have been received.

Challenge for PSEs: The Vice-President, Mr Bhairon Singh Shekhawat, at the seminar, called for an accountable and responsible management, to effectively channelise the latent energies and potential of their executive teams and lead their organisations to prosperity.

Stating that competition is the biggest challenge faced by public sector enterprises (PSEs), the Vice-President said, "As custodians of enormous public wealth, PSEs need to not only protect their wealth but also maximise it for the welfare of the country."

Earlier, addressing the audience, Mr Santosh Mohan Dev drew attention to the fact that, in the last 10 years till 2003-2004, the turnover of public sector companies had increased 213 per cent to Rs 5,86,000 crore while net profit had gone up by 640 per cent to Rs 53,000 crore.

The Minister said between 1994-95 and 2003-04, the net worth of all central public sector companies had increased 256 per cent to Rs 2,93,000 crore from Rs 90,000 crore.

He said, while the proposal of the Ad-Hoc Group of Experts on Empowerment of Public Enterprises on increasing the financial autonomy of central PSEs had been accepted, the other recommendations on ownership issues, vigilance matters and audit of accounts were under consideration, in consultation with various Ministries, the Comptroller and Auditor General of India and the Chief Vigilance Commissioner.

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