Government to expedite disinvestment process

NEW DELHI: Heavy Industries Minister Santosh Mohan Dev will meet Finance Minister P Chidambaram on January 25 to work out the modalities for disinvestment in Maruti and Bhel.

"I will be meeting the Finance Minister on January 25 to discuss the sale of government''s shares in Maruti and Bhel," Dev said on the sidelines of India CEO Summit, organised by Scope, CII and Ficci.

Government is likely to sell 10 per cent of Bhel shares and five per cent of Maruti''s equity, sources close to the disinvestment process said.

The sale of 10 per cent of Bhel shares is likely to fetch about Rs 2,000 crore while Maruti''s five per cent stake sale will mop up close to Rs 700 crore.

Dev said the sale of government shares in the two companies was not to meet the fiscal deficit but to mobilise resources to support spending for social sector projects.

After the proposed public offer, government''s share in Bhel will come down to 57 per cent from the current 67 per cent.

In the case of Maruti, government holds 18.2 per cent residual stake and with the sale of five per cent equity, its holding will slip to 13.24 per cent.

The Centre has indicated it would exit Maruti by phased sale of residual shares.

Government has also taken the Left on board with regard to its disinvestment programme with an assurance that the money raised will go into a separate account.