India Broadband Forum

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India’s federal cabinet has finally given approval to the government’s decision to fully exit their venture with the Japanese automaker Suzuki.

The government would now sell off its remaining equity of 10.27 per cent in the Maruti Udyog Limited which is currently the largest automaker in India.

Finance Minister P Chidambaram said in a statement that the government’s stake in the company would be sold to banks and financial institutions within this financial year or the next.

They are expecting to raise 600 million US dollars through this deal considering the current market value of the company.

This venture originally started as a 50:50 joint venture between the Indian government and Japan’s Suzuki Motor company in 1982. Suzuki at this moment holds a majority stake of 54.2 per cent in the venture.