Q. Which among the following was the first Government Company to be privatized in India?
Answer: Maruti Udyog Limited
Notes: Maruti Udyog Limited (now Maruti Suzuki India Limited) was actually the first public sector enterprise in India to be privatized. Maruti Udyog Limited was established in 1981 as a government owned company under the provisions of Indian Companies Act. In 1992, the Government allowed Suzuki Motor Corporation, Japan to purchase 40% of Maruti's stakes leading to partial privatization. Finally on 17th July 2002, the Government sold its remaining stake and Maruti Suzuki became a private company. So Maruti Udyog Ltd, which is currently known as Maruti Suzuki India Ltd, was the first instance of privatization of a state owned company in India. The process started in 1992 with partial privatization and was completed in 2002. However, first fully privatized PSE was Modern Foods India Ltd in 2000. Modern Food Industries was set up in 1965 as a public sector enterprise under the Ministry of Agriculture. It was engaged in producing bread, biscuits and other bakery products. In January 2000, the Government of India decided to privatize Modern Food Industries by selling its equity to the public. This marked the beginning of the disinvestment and privatisation drive in India.