An Indian cabinet body Saturday began a crucial meeting to consider the sale of state holdings in the country's largest carmaker and a prominent petroleum company, officials said.
The Cabinet Committee on Disinvestment, however, reportedly dropped plans to look into the privatization of telecom firms Mahanagar Telephone Nigam Ltd. and Videsh Sanchar Nigam Ltd.
Top of the agenda is a proposal to divest the Indian government's stake in Maruti Udyog Ltd. (MUL), in which Japan's Suzuki Motor Corp is an equal partner.
An official said any decision of the carmaker was unlikely to be effected Saturday as the government would also need Suzuki's go-ahead to offload its stake in the company.
Maruti has a 60 percent share of the domestic car market.
"Maruti is a very attractive buy. A lot of global car companies would be interested. Inviting bids from them would ensure the government realized the price for its lucrative shares," a senior official at the department of disinvestment told AFP earlier.
Analysts say that despite being dogged by falling sales and labor unrest, Maruti, formed in the early 1980s, is still a very attractive buy.
The Indian market had been dominated for over four decades by antiquated versions of British cars, and, since the 1980s, by Maruti-Suzuki, which is currently facing stiff competition from new foreign entrants.
A federal minister told the Economic Times daily Saturday that the government needed to speed up its privatization plans, saying Prime Minister Atal Behari Vajpayee's "spelling had gone awry.
"Governance is spelt dither," he said, adding that the list of firms whose disinvestment was due to be discussed at Saturday's meeting was "hardly a wholesome menu."
The cabinet committee is also expected to discuss a revamp of Indian Petrochemicals Cprp Ltd and offloading state holdings in Paradeep Phosphates -- NEW DELHI (AFP)
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