CCD may meet next week on MUL, IPCL selloff

NEW DELHI: The government is likely to decide on disinvestment deals relating to Maruti and Indian IPCL next week at the meeting of the Cabinet Committee on Disinvestment.

A meeting of the CCD could be held next week as Prime Minister, who chairs the high powered committee, is likely to go to Manali on vacation in the subsequent week, sources said here.

While CCD is expected to approve the buyer from among the three bidders for 26 per cent government stake in IPCL, the agreement with Suzuki Motor Corporation for divestment in joint venture Maruti starting with a Rs 400 crore rights issue is likely to be finalised during the meeting.

Before finalisation of partner for IPCL at CCD, Disinvestment Ministry would convene a meeting of the Inter-ministerial group to open the financial bids before moving to core group of secretaries on disinvestment (CGD) for approval of the highest bidder, sources said.

In case of Maruti, DoD may not need to approach CGD, sources said adding a two member team was entrusted the responsibility for holding negotiations with Suzuki for disinvestment in MUL.

Official level agreement between the two JV partners on pricing and premium was reached late last month, they added.

However, DoD would seek comments from Heavy Industry Ministry on Maruti deal before going to CCD, they said and added that comments from other concerned ministries including Law and Finance had been obtained.