The government on Friday decided to sell 8 per cent of its equity in Maruti Udyog Ltd [Get Quote].

"It has been decided to sell 8 per cent equity in Maruti," Heavy Industries and Public Enterprises Minister Santosh Mohan Deb told reporters after the meeting of Cabinet Committee on Economic Affairs on Friday.

The government had decided to offload a portion of its equity in Maruti and BHEL earlier this year.

In Maruti, the government intends to sell its 18.24 per cent residual stake in phases.

Today's CCEA decision paves the way for sale of 8 percent stake in Maruti. The government had already sold more than 25 per cent stake in Maruti through an initial public offer in 2003-04.

After the IPO, government stake in the auto-maker had come down to 18.24 per cent.

Maruti shares are hovering at about Rs 485 in major bourses.