Marking the end of Government's gradual withdrawal, the cabinet approved government's move to completely exit auto major Maruti Udyog Ltd. by selling off its residual 10.27 % stake.

The stake estimated at Rs 2,700 crore (Rs 27 billion) is likely to be sold to banks and financial institutions.

The Cabinet Committee on Economic Affairs gave the go-ahead to the sale of Government's remaining 2,96,79,689 shares (as on September 31, 2006) in Maruti, the second such exercise in 2006.

Japanese car giant Suzuki has a majority 54.2 per cent stake in the company.

Maruti Udyog was established in February 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system.

Suzuki was chosen from seven prospective partners worldwide and a licence and Joint Venture agreement was signed between the Government and the Japanese company in October 1982.