Ministry sources said the issue could be taken up next fiscal when the valuation of Maruti's shares was expected to be much better than this fiscal after the extent of competition that it would face would become clear, the sources said.

Sources maintain that reports about "intense" competition that Maruti had now been exposed to with a large number of foreign auto majors setting up shop in the country were rather "exaggerated". "We are not writing off competition but we do not want to under-estimate our strength in the market which we have been operating for the past 12 years."

With a monopoly in the passenger-car market last fiscal, disinvestment of Maruti shares could have been successful with a better price realisation, sources said.

But the opportunity was lost after Maruti announced a sharpreduction in prices of all its models.

The finance ministry, on the other hand, is keen that Maruti divest its shares in order to enable it to mop up Rs 10,000 crore by way of disinvestment of Government stake in PSUs during 1999-2000. It even favours the open auction route for sale of Maruti shares. But a formal proposal is yet to come from the heavy industry department, the finance ministry said.

Analysts who have been watching the developments in the auto sector with the induction of more players have questioned the wisdom of the finance ministry suggesting the open auction route.

In their view, the system, if adopted, will result in Suzuki passing on the technology to more than one party, thus, destroying the spirit of the joint-venture agreement. To keep the agreement in tact, experts suggest that the Centre appoint an independent firm of chartered accountants to make a proper evaluation of Maruti shares.

Once the report is received, the disinvestment process can be carried forward by sharingthe contents with Suzuki. Suzuki can buy the entire 50 per cent shares or sell those to only one group or party selected by mutual consent. The intention is that the party chosen is "compatible" with Suzuki's style of functioning without which the new company that will be formed subsequently will run into several problems.

Industry minister Sikander Bakht had made a statement on the floor of Parliament a few months back ruling out the question of disinvestment of equity holding in Maruti, a 50:50 joint venture between Government and Suzuki Motor Corporation.