Revival plan of Scooters India deferred
10 January 2013
The government has deferred a plan for revival of sick public sector unit Scooters India Ltd (SIL) amidst augmented plan for sale of equity in state-run companies.
The Department of Heavy Industry (DHI) had proposed a Rs200-crore revival package for the company after the government shelved plan to sell its entire stake in SIL.
A decision on the revival proposal was put off as minister for heavy industries Praful Patel failed to attend the cabinet meeting.
"The cabinet has deferred the proposal for revival of Scooters India due to absence of Heavy Industries and Public Enterprises Minister Praful Patel in the meeting," a minister said after the cabinet meeting.
The revival proposal included equity infusion by the government and grants and loans as also non-cash assistance including waiving interest and conversion of loan to equity.
The Cabinet had, in 2011, given approval to divesting government's entire 95.38 per cent stake in Scooters India to a private player through strategic route. But the Department of Heavy Industry decided to put the strategic sale of ailing public-sector unit on hold.