Govt approves Rs200-cr revival package for Scooters India
01 February 2013
The union cabinet on Thursday approved an over Rs200-crore revival package for Scooters India Limited (SIL), involving fresh infusion of Rs90.38 crore funds by way of working capital and waiver/conversion of loan/interest to the tune of Rs111.58 crore.
Employees of the Lucknow, UP-based SIL will also get 2007 pay scales as per the guidelines of the department of public enterprises (DPE) and enhanced superannuation of 60 years against the earlier 58 years.
The coming general elections seem to have clinched the issue for SIL, with finance minister P Chidambaram wanting the company closed, and heavy industries minister Praful Patel favouring selling it to a private player as far back as in 2011.
''You all decide what you want to do and I'll execute that,'' Patel is reported to have told the CCEA.
It was the prime minister who shot down the proposal to close SIL and pitched for its revival.
It may be mentioned that the union cabinet had in 2011 decided to divest its Rs95.38 crore stake in favour of a private investor but deferred the decision under pressure from party leaders from Uttar Pradesh ahead of the assembly elections there.