Wednesday, January 5 2005 16:47 Hrs (IST) - World Time -

New Delhi: Heavy Industries Ministry has virtually consented to Finance Ministry's suggestion for part divestment of Government equity in blue-chip PSU (Public Sector Undertaking) Bharat Heavy Electricals Ltd (BHEL) and auto joint venture Maruti Udyog in the current financial year.

It, however, asked the Finance Ministry to consider weightage for Indian public and institutions during the public offer fearing that foreign financial institutions would strive to get most of the shares of these profit-making companies, Ministry sources said.

The Finance Ministry would now moot a formal proposal for disinvestment of five per cent equity in BHEL and sale of residual 18.24 per cent equity in Maruti Udyog in a phased manner, they added.

The move is part of efforts to garner resources for social sector schemes, to which the Manmohan Singh Government is according the highest priority.

According to the present share prices, five per cent equity sale in BHEL may fetch about Rs 950 crore to the Government.

Likewise, the value of Government equity in Maruti at current prices is more than Rs 2,445 crore.

"The public offers for both the companies are likely to be completed this fiscal," sources said.