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Are you among these Very Special People The Super Sixties? A Dancing Doctor Discovers Cosmic Therapy War Scare Keeping Tourists Away |
| Suzuki’s first major investment after bagging Maruti | |
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Disinvestment Minister, Arun Shourie, underlined the fact that the disinvestment process in general and privatisation in particular would get a big boost with the changeover at Maruti. He said Maruti’s divestment also restored trust between the Government and SMC, leaving behind the dark clouds. Shourie told Suzuki: "Our wealth is in your hands. You will have to convince the Indian investor that Maruti will be an even better company in the future." Suzuki promised that Maruti Udyog would remain an Indian company with no change in its status. Jagdish Khattar, who has been retained as managing director of Maruti by SMC, said the die-cast foundry would be set up at Manesar with an investment between Rs. 200 to 250 crore and pointed out that "preparatory work for the foundry has been completed, and will be implemented within 12 months". A part of the proceeds from the rights issue would be used for the die-cast shop. Hinting at the need for an attractive excise tax policy for small cars, Suzuki offered a car for every Indian family if the Government came out with favourable policies. On the occasion, the first buyer of Maruti, Harpal Singh, was honoured by the company. |
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VSNL—Power Play on
Show T he VSNL-Tata row is hotting up. And the battle has assumed political overtones.Union Disinvestment Minister, Arun Shourie, who was being considered as a possible replacement for Finance Minister, Yashwant Sinha, on whom the BJP had trained its guns, appears to have lost the backing of his party colleagues. Shortly after Telecommunications Minister Pramod Mahajan fired his salvo against the Tatas, the target appears to have become clearer with the party fully backing Mahajan. Shourie is now being indirectly blamed for the VSNL transferring Rs. 1,200 crore to Tata Teleservices. The Tatas recently bought a 25 per cent stake in VSNL. The BJP Economic Affairs Committee, headed by Jagdish Shettigar, has commented that the transfer "defeated the very spirit of disinvestment of the PSUs" as the Government’s objective of "divesting its equity holding from profit-making units like VSNL" was to "strengthen such units by injecting professional management along with resource contribution." Asked whether the Tata decision could be legally challenged as the Government had sold its holdings, Shettigar said, "We didn’t expect the Tatas, who are known for their ethics, to behave like this." BJP sources stressed that in the sale of Balco to Sterlite, the Government had imposed conditions—no sale of any property/assets, transfer of shares or cash reserves for a fixed period. But no such clause was included when VSNL was sold. This loophole allowed the Tatas to transfer VSNL funds to Tata Teleservices. The Tatas have said they got the green signal from the Government representative on the VSNL Board. But BJP sources when asked who was responsible for the absence of a safety clause, said, "The Disinvestment Ministry." Indeed, there is clearly more than that which meets the eye in the party endorsing Mahajan’s line. If the VSNL case is being publicly fought, privately a Minister of State recently accused Shourie of inspiring reports on Sinha’s links with Flex Industries.
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Suzuki
Motor Corporation (SMC) will invest Rs. 250 crore in its subsidiary,
Maruti Udyog, for setting up a die-cast foundry shop which will
further increase indigenisation of its vehicles. This would be
Suzuki’s first investment in Maruti Udyog after taking a majority
stake and management control of the company in addition to subscribing
to the entire rights issue. SMC’s chairman and chief executive officer
(CEO), Osamu Suzuki, handed over a cheque for 