Cabinet approves revival package for Scooters India

Discussion in 'Indian Automotive Scene' started by Car Lover, Feb 5, 2013.

  1. Car Lover

    Car Lover New Member

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    [​IMG]The Cabinet has finally approved the Rs 200-crore revival package for ailing Scooters India (SIL).

    After the government put aside the plan to sell out its entire stake in Scooters India, the Department of Heavy Industry had proposed a revival package of more than Rs 200 crore for revival of the company.

    Earlier in 2011, the Cabinet had given nod to divesting government's entire 95.38 per cent stake in Scooters India to a private player through strategic route. However, Department of Heavy Industry had put on hold the strategic sale of ailing public-sector unit SIL.

    The State-owned automobile company, which has about 1,200 regular employees, has been incurring losses since 2002-03. In March 2009, the company was declared sick.

    Incorporated in 1972, SIL initially manufactured scooters under the brand name Vijai Super for the domestic market and Lambretta for overseas markets.

    Later, it ventured into the three-wheeler segment with the Vikram brand. In 1997, it stopped two-wheeler production and is now engaged in the manufacture and marketing of only three-wheelers.

    SIL's net loss (before tax) stood at about Rs 20 crore during the 2011-12 fiscal.
     

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