Chambers React Cautiously To Suzuki-Govt Tiff

Industry chambers yesterday reacted cautiously to the dispute between the government and Suzuki Motor Company of Japan the equal partners in Maruti Udyog Ltd (MUL). Suzuki has challenged RSSLN Bhaskarudus appointment as the new managing director of Maruti Udyog Ltd by the government.

Several industrialists expressed confidence that the spat is unlikely to affect the flow of foreign investment into the country.

The Confederation of Indian Industry (CII) declined to give a statement on the issue on the ground that its policy was not to comment on corporate affairs. CII does not comment on corporate affairs, an official said.

The Associated Chambers of Commerce and Industry (Assocham) also declined to comment on the issue on the plea that the matter was subjudice. Unofficially, however, an official said the event was an isolated instance of a dispute between two partners and will not dampen the enthusiasm of investors.