MINISTER OF DISINVESTMENT AND MINISTER OF DEVELOPMENT OF NORTH EASTERN REGION (SHRI ARUN SHOURIE)
(a) & (b) Government, at this stage, has decided to offer shares on a rights basis to the existing shareholders with a renunciation option for the Government in favour of Indian Financial Institutions and/or Suzuki Motor Corporation (SMC). Government has invited Suzuki Motor Corporation for negotiations on the principles of fixation of rights issue price, respective proportion of renunciation in favour of Indian Financial Institutions and/or Suzuki Motor Corporation, renunciation premium and control premium to be paid by SMC.
(c) The position regarding Net worth and profits/losses for last four years is as follows:-
Net worth and Profit
Year Net Worth Post Tax Profits/(Losses) (Rs. In crore)
1998-1999 2596.1 523.0
1999-2000 2859.8 330.1
2000-2001 2683.8 (269.4)
2001-2002 Till 30/9/2001 2537.0 30.4
(d) MUL has largely achieved the objectives set for it at the beginning. It helped in rapid motorization in the country, Passenger car industry which was almost stagnant before MUL, grew at the annual rate of 23% during 1983 - 1990. The industry has grown at CAGR (Compounded annual growth rate) of 10-12% in the 90`s. Advent of MUL also saw development of modern component industry, which helped other global manufacturers to set up production facilities in country. The two popular models, Maruti 800 and Omni remain the lowest cost models produced any where in the world and the actual cost of these models in real terms has remained almost the same since these were launched.
(e) Protection of interests of employees is an integral component of the disinvestment policy.
