NEW DELHI: The Union Government on Thursday decided to revive the sick public sector undertaking Scooters India Limited (SIL), Lucknow, by selling its entire stake and its take-over through a joint venture.
Pressing with its Uttar Pradesh-centric approach what with the elections knowing the doors, the congress-led UPA government approved the proposal to induct a strategic partner by offloading the entire government equity of around 95 per cent with the balance remaining with banks, financial institutions, corporate bodies and others. The transfer of government equity would be done through the Department of Disinvestment after obtaining Parliament's nod to identify and induct a strategic partner.
Manufacturing three-wheelers under the brand name of Vikram, SIL has been recording operational losses since 2002-03 and net losses since 2006-07 due to inherent inefficiency and low productivity and inability to match the highly competitive market.
Net worth
With its net worth eroded at the end of the closure of audited accounts on March 31, 2008, the Board for Reconstruction of Public Sector Enterprise recommended the induction of a joint venture partner as the only way out to revive the unit.
Pressing with its Uttar Pradesh-centric approach what with the elections knowing the doors, the congress-led UPA government approved the proposal to induct a strategic partner by offloading the entire government equity of around 95 per cent with the balance remaining with banks, financial institutions, corporate bodies and others. The transfer of government equity would be done through the Department of Disinvestment after obtaining Parliament's nod to identify and induct a strategic partner.
Manufacturing three-wheelers under the brand name of Vikram, SIL has been recording operational losses since 2002-03 and net losses since 2006-07 due to inherent inefficiency and low productivity and inability to match the highly competitive market.
Net worth
With its net worth eroded at the end of the closure of audited accounts on March 31, 2008, the Board for Reconstruction of Public Sector Enterprise recommended the induction of a joint venture partner as the only way out to revive the unit.
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