By Sanjeev Srivastava BBC correspondent in Bombay

Suzuki Motor of Japan has gained control of India's biggest automaker, Maruti Udyog, boosting India's state enterprise privatisation programme.

Suzuki chairman Osamu Suzuki presented a cheque of 10bn rupees (�139.8m) to the Indian minister of power and heavy industries, Suresh Prabhu, in New Delhi on Thursday.

The deal hands Suzuki a 54% controlling stake in what was until now a fifty-fifty joint venture with the Indian government.

But the deal is more than just the sale of a car company, it is the end of an era.

Maruti was the most high-profile symbol of India's socialist economic policies and, by extension, of state run companies.

The story of most state run companies in India has been one of inefficiency, corruption and huge losses.

But Maruti was always an exception, partly because of the heavy involvement of a Suzuki.

Maruti takeover

A successful changeover in management at Maruti will also help the Indian government to press ahead with its privatisation programme.

New Delhi aims to raise 120bn rupees through the partial state-owned firms by March next year.

The government will further reduce its stake in Maruti to 25% through a share flotation by March 2003, with the remainder being sold by March 2004.

The change of management should also revitalise Maruti which has seen its market share slipping from 80% to less than 60% in the last five years.

Market outlook

When Maruti launched in 1983, the domestic market was closed to foreign competition and there were just two Indian auto makers.

Now there are eleven, including some of the world's leading manufacturers.

But Maruti is still well ahead of its rivals, thanks largely by its extensive network of suppliers and dealers.

The takeover of Maruti will also allow Suzuki to consolidate the company into its accounts, boosting revenues and operating profits.