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|June 8, 1998||
Government, Suzuki resolve Maruti row
The government has signed a memorandum of understanding and settlement with the Suzuki Motor Corporation under which appointments of chairmen and managing directors of their joint venture, Maruti Udyog Limited, will be made only after mutual consultation.
Making a statement in both Houses of Parliament, Industry Minister Sikander Bakht said under the out of court settlement, the SMC had agreed to withdraw the arbitration proceedings in the international court of arbitration. The term of Managing Director R S S L N Bhaskarudu would be up to December 31, 1999, and on January 1, 2000, Jagdish Khattar, currently executive director of MUL, would succeed him, Bakht said.
Under the settlement, the SMC nominee will be appointed as MUL chairman. Moreover, all future apointments of chairman and managing director by either the Government of India or SMC will be only in consultation and with the concurrence of the other party.
"I hope now Maruti Udyog Ltd, will be able to undertake all the necessary steps to sustain its leadership in the Indian automotive industry and grow from strength to strength to become a truly global player with the full cooperation of both the Government of India and SMC," Bakht said.
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