'No proposal with govt on Maruti selloff'

Minister for Heavy Industries Manohar Joshi on Friday said that the government will push ahead negotiations with Suzuki Motor Corporation of Japan to transfer the crucial gearbox technology to Maruti Udyog Limited.

Stating that there was no proposal with the Department of Heavy Industry and the Ministry of Divestment for selling off government's 50 per cent holding in the country's largest carmaker, Joshi told newspersons that the efforts to procure gearbox technology will not be stalled.

''There has been no decision on divestment of government stake in Maruti. The issue has not been taken up and has not even come before my ministry. It is also not in the agenda of the divestment ministry,'' he said.

Suzuki controls 50 per cent stake in Maruti, while the Government of India holds 49.74 per cent and MUL employees hold 0.26 per cent.

The issue of transfer of gearbox technology has been hanging fire between the two partners for over two years now. Suzuki has already submitted a project proposal before the Maruti Udyog Limited board envisaging an investment of Rs 12 billion for setting up a facility to develop and manufacture the critical gearboxes in India.

SMC had stated that the gearbox technology would be transferred in two phases spread over a period of three years.

The company has since been studying the viability of the proposal and is yet to arrive at a decision on the same. The company was also deliberating whether it would be desirable to have a new corporate entity for implementing the gearbox project.

As per the project report, SMC will transfer the technology for making the easy gears in the first phase and the more difficult ones in the second phase.

UNI

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