Cabinet may clear revival plan tomorrow
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The government is planning a Rs 200-crore restructuring and revival package for the Lucknow-based sick public sector unit, Scooters India Limited (SIL), which is likely to be approved by the Cabinet on Thursday.
As reported by the The Indian Express on July 2 last year, the Centre had decided to revive SIL after having earlier agreed to put it under the hammer.
The revival package for the loss-making unit envisages a Rs 200 crore package that includes an infusion of Rs 70 crore for capital expenditure and an interest free loan of Rs 20 crore for working capital, payable in five equal annual instalments only from 2015, after a three-year moratorium.
According to sources, Congress general secretary Rahul Gandhi had favoured revival of the sick PSU. The state Congress leadership, including former UPCC chief Rita Bahuguna, had also put up a strong opposition, pointing out that the party, which is already fighting high odds in Uttar Pradesh, would suffer politically if the PSU was divested.
The revival package includes: converting the non-plan loan of Rs 83 crore into equity, waiving interest of about Rs 30 crore, providing fresh funds of Rs 70 crore as equity for capital expenditure.
For the 1,200 employees, the proposal envisages enhancing superannuation age from 58 to 60 years and implementation of the 2007 pay revision.
Known decades earlier for its Vijay Super and Lambretta brands, SIL currently manufactures three wheelers for domestic consumption. In 2011, the Centre had approved its outright sale to a private player after the Board for Reconstruction of Public Sector Enterprises had examined the case and suggested disinvestment through strategic sale.
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