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Govt mulls rights issue of Maruti

The Centre is considering floatation of rights issue of Maruti Udyog Limited in a bid to dilute its holding in the 50:50 joint venture with Suzuki Motor Corporation of Japan.

Union minister for Heavy Industries Manohar Joshi told reporters in Calcutta in Monday that the government would not subscribe to the issue, but would offer its subscription to the financial institutions.

The government would seek the consent of the joint venture partner before floatation of the issue, he said, since 'as per the agreement with Suzuki, we have to get their consent before the move'.

Asked if there would be an agreement with the employees on the issue, he said: "We will take the employees into confidence."

Meanwhile, the process of divestment of public sector units has been slowed down due to the large scale agitation by the Balco employees, Joshi said, adding that the government was taking steps to speed up the process.

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