Government to divest entire stake in Scooters India
19 May 2011
The government has decided to divest its entire 95-per cent stake in the loss-making Scooters India Ltd (SIL), which primarily manufactures the Vikram brand of three-wheelers, in a bid to revive the company.
Based in Lucknow, Scooters India started commercial production of scooters under the brand name of Vijai Super for domestic market and Lambretta for overseas market in 1972. In1997, it stopped two-weeler production and started manufacture and sale of three-wheelers under the brand name `Vikram'.
The union cabinet today approved a proposal to induct a strategic partner by offloading the entire government equity of around 95 per cent in Scooters India. The balance 5-per cent equity will remain with banks, financial institutions, corporate bodies and others.
The sale of government's entire equity in the three-wheeler maker will help arrest further drain of public money and also help revive the company, which has been making losses since 2002-03.
"It is being proposed to revive the company through induction of a strategic partner by offloading the entire government equity of around 95 per cent," information and broadcasting minister Ambika Soni told reporters after the meeting.
The balance 5-per cent equity will remain with banks, financial institutions, corporate bodies and others.