Govt to go ahead with sale of Scooters India: Praful Patel
The government today said it will move forward with the strategic sale of state-owned Scooters India Limited (SIL) and there will be some positive movement on the disinvestment proposal in the coming months.
September 06, 2011 / 15:48 IST
The government today said it will move forward with the strategic sale of state-owned Scooters India Limited (SIL) and there will be some positive movement on the disinvestment proposal in the coming months.
"We are yet to proceed further. There are some issues which we need to resolve... I am sure in the coming months, there will be some positive movement," Minister for Heavy Industries and Public Enterprises Praful Patel said here.He was talking to reporters on the sidelines of the Automotive Component Manufacturers Association of India (ACMA) summit.Patel further said his ministry is discussing the proposed sale of SIL with the Department of Disinvestment (DoD). "Basically, the government decision has been taken and now, the next decision is to see how to move forward," he said.In May, the Union Cabinet had decided to divest its entire 95.38% stake in SIL to a private player through a strategic sale. But the government needs to get Parliament's nod for the same.SIL has about 1,200 regular employees and has been incurring losses since 2002-03. In March, 2009, the company was declared sick and referred to the Board for Reconstruction of Public Sector Enterprises (BRPSE).Incorporated in 1972, SIL was initially engaged in commercial production of scooters under the brand name 'Vijai Super' for the domestic market and 'Lambretta' for the overseas market.Later, it ventured into the three-wheeler space with the 'Vikram' brand. However, in 1997, it stopped two-wheeler production and has since been engaged in the manufacture and marketing of three-wheelers only.During the 2010-11 fiscal, SIL's net loss stood at Rs 18.4 crore. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
