The government has initiated the process of selling all its holding in Maruti Udyog [Get Quote] Limited to raise more than Rs 2500 crore (Rs 25 billion).

"We have offered to the Finance Ministry to sell 10.24 per cent stake that the government has in Maruti. Now it is up to them to take the call," Heavy Industries Minister Sontosh Mohan Dev said. The government stake in the company is held by Ministry of Heavy Industry.

Based on current market price of company's scrip on the stock exchanges, the government is likely to raise over Rs 2500 crore. As all divestment in public sector companies is off for now, sale of shares in erstwhile PSU Maruti will offer much-needed resources to the government.

Last year the government had sold 8 per cent shares in Maruti for more than Rs 1,567 crore (Rs 15.67 billion) to public sector financial institutions.

At that time itself government had announced that it would completely exit the company in 2006. The government's holding in the company has come down to 10.27 per cent and it no longer has a director on the board of the company.

Dev also said the Prime Minister has agreed in principle to release Rs 138 crore (Rs 1.38 billion) for liquidating the salaries and other statutory dues of PSUs under the Ministry of Heavy Industries. This Rs 138 crore is part of the Rs 350 crore (Rs 3.5 billion) package for the same reason for all the PSUs.

He said with this package the total assistance by the government to pay the arrears of workers of loss-making PSUs in last two years has crossed Rs 800 crore (Rs 8 billion).