The divestment ministry expects to mop up about Rs 700 crore (Rs 7 billion) from the ensuing public offering in Maruti Udyog Ltd, taking the total divestment realisation for the current financial year to about Rs 4,300 crore (Rs 43 billion).

"I can't give a timetable. But I feel in the current financial year we can complete only Maruti," divestment secretary, Pradeep Baijal, told reporters in New Delhi when asked as to how many companies his ministry expected to divest in the remaining two months of the current financial year.

Baijal said that the government had already mopped up Rs 1000 crore (Rs 10 billion) from the first phase of divestment in MUL (through a rights issue) and expected to realise another Rs 1400 crore (Rs 14 billion).

"The expected Rs 1400 crore would be spread over the next two stages of divestment in MUL," Baijal said.

The divestment realisation in the current fiscal has already touched Rs 3,500 crore (Rs 35 billion) till now, Baijal, who was speaking on the sidelines of an All India Management Association seminar, pointed out.

Baijal said that the divestment ministry expected to conclude Maruti IPO by March 17.

The public issue is the second stage of divestment in MUL where the joint venture partner Suzuki Motor Corporation had agreed to give an underwriting of Rs 2300 a share as part of the agreement and government had decided to offer 25 per cent equity by March, 2003 through an IPO.

The government holds a 45.54 per cent stake in Maruti and plans to sell 20 per cent of the carmaker's shares to the public. Japan's Suzuki Motor Corp holds 54.2 per cent of Maruti, which has a commanding 50 per cent share of the domestic market.

Baijal said the government expects to raise Rs 700 crore (Rs 7 billion) to Rs 800 crore (Rs 8 billion) from the stake sale in Maruti on top of the Rs 3,500 crore (Rs 35 billion) already raised through privatisations in 2002-03.

The government had aimed to collect Rs 12,000 crore (Rs 120 billion) through stake sales in state firms in the year to March 2003 but now says it will fall way short of the target after a delay in the sale of two cash-rich oil companies.

India decided last weekend to shed majority control in Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd, which together hold a 40 per cent share of India's oil products market.

But the sales, held up by differences among lawmakers over the government's privatisation drive, could take another six to seven months to complete, officials say.

The government, which owns 87.15 per cent of National Aluminium Co or nalco, called preliminary global bids last August to sell a 29.15 percent stake and cede management control.

It plans to follow up with a 10 per cent offering to domestic retail investors and cede another 20 per cent through an issue of American Depositary Receipts. Two per cent will go to employees.

The government plans to relinquish management control in SCI through sale of 51 per cent equity to a strategic partner. It now holds a 80.12 per cent chunk of India's largest shipping line.