Manohar Joshi, India's heavy industries and public enterprises said that the government did not want to dilute stake in Maruti.
Maruti Udyog Ltd. (MUL), a joint venture between the Indian government and Suzuki Motors of Japan, has a presence in the small car segment (800, Zen), mid-sized segment (Esteem, 1000), and the utility vehicle segment (Gypsy).
The new BJP government has been quite firm on playing an extended role in Maruti. The heavy industries minister has reiterated in the past that the government has no plan to offload its stake in Maruti.
Earlier the government had resolved that it would exit from all non-core areas. While infrastructure would be most the important area for investment of public funds, areas like auto should definitely be classified as non-core. It is for the government to decide whether it should utilise public funds in manufacturing cars or in providing better healthcare, sanitation and educational facilities to its citizens.
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