Joshi hints at MUL decision at Dec 23 meeting

MUMBAI, DEC 7: Heavy Industries and Public Enterprises Minister Manohar Joshi, who came out with reservations against disinvestment Maruti...

MUMBAI, DEC 7: Heavy Industries and Public Enterprises Minister Manohar Joshi, who came out with reservations against disinvestment Maruti Udyog last week, now seems to be in a hurry to sell the 50 per cent government holding in the company now. Joshi on Thursday hinted that Maruti Udyog’s disinvestment proposal being cleared at the Cabinet Committee on Disinvestment (CCD) meeting on December 23.

“CCD will look at inter-ministerial committee report and may even go beyond approving it,” Joshi told reporters here indicating that the committee was likely to give nod to divest Centre’s holding in MUL. It may be recalled that when CCD appointed a panel to look into the Maruti divestment in the last meeting, Joshi had come out with a statement denying any government plan to disinvest in Maruti.

It had also become a political issue with Shiv Sena opposing the disinvestment method of the government. Later Disinvestment Minister Arun Shourie came down to Mumbai and settled the issue after a discussion with Sena leader Balasaheb Thackeray.

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Asked about interest evinced by Indian Auto companies including Bajaj Auto Ltd for picking up government’s stake in MUL, he said: “I am aware of it” and added that the Shiv Sena felt that Indian interests must be considered.He said Shiv Sena delegation would meet Prime Minister Atal Bihari Vajpayee this week to apprise the party’s stand on disinvestment process in public sector units.

Earlier, inaugurating the `Mumbai Auto show’ organised by Confederation of Indian Industry, the Minister said the draft auto policy was ready and may go for cabinet approval later this month.

Curbs on import of used cars likely: Wearing a swadeshi heart on his sleeves, Joshi also announced that the Centre would impose certain tariff and non-tariff restrictions on the import of used vehicles, in a serious bid to avoid India turning into a dumping ground for such vehicles. This issue would be incorporated prominently in the proposed auto policy, which is likely to be released by the end of December or early next year, he said.

"We are aware that under the WTO agreement, we cannot impose a ban, but we will certainly consider imposing certain restrictions against the dumping of second hand vehicles in India," Joshi said.

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Joshi strongly justified introduction of such restrictions, especially under the Quantitative Restrictionless regime, and said that the Centre would safeguard the interests of the Indian automobile industry, which was one of the oldest in Asia and had an investment of over Rs 50,000 crore and a turnover of Rs 60,000 crore. "The Centre is committed to protect the interests of Indian manufacturers who would have to maintain efficiency, reduce costs and upgrade technology," he added.

Joshi, however, made it clear that no government policy can and should protect an "inefficient" industry, and called upon the domestic industry to be competitive to catch up with the global competition. "I am confident that the Indian industry can and would overcome these challenges and would be second to none in the years to come," he observed.

On the much-debated auto policy, Joshi said that his ministry, which has circulated its draft to various union departments had received their comments and opinions. "The policy will be presented to the Union Cabinet this month for approval and thereafter, it would be released," he added.