New Delhi: Suzuki Motor Corporation (SMC) of Japan and government have finalised the pricing of the shares for proposed rights issue in their joint venture Maruti Udyog Limited (MUL) as part of the exercise to privatise the car company, Heavy Industry Minister Manohar Joshi said.

"We have recently decided the price for proposed rights issue of MUL", Joshi said when asked about the progress on disinvestment in the JV.

Joshi, however, declined to reveal the price, that would be inclusive of the premium, saying that matter fell within the purview of disinvestment department.

When contacted, Disinvestment Secretary Pradeep Baijal said that negotiations were on with the high level team from SMC, which has been camping in Delhi for over a month.

"We would try to bring the issue at the next meeting of the Cabinet Committee on Disinvestment (likely to be held in New Delhi on March 28), but it may not be possible as negotiations are still on," he said exuding confidence about the early settlement of the issue.

Joshi said financial institutions would be given the first preference failing which SMC would be asked to subscribe to the issue.

Government has decided to offload its equity in the 50:50 JV, beginning with a rights issue of Rs 400 crore where the Indian partner would abstain for consideration of a renunciation premium.

Cabinet Committee on Disinvestment (CCD) had earlier cleared a proposal to dilute equity in the company through a rights issue to be followed by a public offering.

PTI