Strategic disinvestment of Scooters India on cards

Despite various revival attempts, the company has incurred losses over a long period and was eventually declared sick

GN Bureau | September 17, 2016


#Scooters India   #disinvestment   #losses   #heavy industries ministry  

 Heavy industries ministry is likely to seek cabinet approval for "strategic disinvestment" of loss making automaker Scooters India Limited. The strategic disinvestment means sale of substantial portion of government’s shareholding in the CPSE up to 50 percent or more, along with the transfer of management control.

 The disinvestment of Scooters India has been talked about in the past as well but successive governments could not implement the plan due to divergent views among various stakeholders.
 
 Despite government's revival attempts, including sanctioning a financial package, the company has incurred losses over a long period and was eventually declared sick. Scooters India used to manufacture the popular Lambretta scooters.
 
 Government's think tank NITI Aayog had recently submitted two separate lists of sick and loss-making PSUs - one comprising those that can be closed down and the other of those where government can divest its stake. This fiscal, the government aims to collect Rs 56,500 crore through disinvestment in PSUs. Of the total budgeted proceeds, Rs 36,000 crore is estimated to come from minority stake sale in PSUs and the remaining Rs 20,500 crore from strategic sale in both profit and loss-making companies. 
 
In 2015-16, the government raised less than half of the disinvestment estimates at Rs 25,312 crore against the target of Rs 69,500 crore. It had raised around Rs 24,500 crore in 2014-15 by selling stake in public companies, about Rs 16,000 crore in 2013-14 and Rs 23,960 crore in 2012-13.
 

Comments

 

Other News

El Niño threatens India’s Rabi crops

India’s southwest monsoon ended with a 13% rainfall deficit in 2026, its weakest performance in a decade, raising concerns over agricultural production, water security and the upcoming rabi season. With El Niño expected to persist into early 2027, experts warn that declining soil moisture, dep

Regulating the data advantage: India’s new e-Commerce framework

For over a decade, India’s e-commerce story has rested on a simple premise: platforms connect buyers and sellers, while data fuels efficiency, personalisation, and scale. However, as the market matured, its structure has revealed a growing imbalance. E-commerce platforms, especially marketplace ent

Changing weather patterns, climate change responsible for Nepal floods

The interaction between active Western Disturbances, increased atmospheric moisture and the region’s complex topography aswell as global warming are important factors behind intense rainfall in the Himalayas, leading to flash floods in Nepal, according to meteorologists. Nepal

A right she cannot reach

Last summer, the two of us spent several weeks in rural Madhya Pradesh with a non-profit that works on gender justice through women’s self-help groups. We went in with a notebook full of laws. The Protection of Women from Domestic Violence Act. The Dowry Prohibition Act. Free legal aid for every wo

Tier-2 cities lead India’s digital credit push

Digital payments have become a reflex for urban India, but the confidence earned in paying has not yet carried over to borrowing. That is the central finding of `How Urban India Pays Report 2026`, released by Pahlé India Foundation in collaboration with Amazon Pay. Based on a survey of 5,149 consu

India calls for doubling bilateral trade with UK by 2030

Commerce and industry minister Piyush Goyal has called upon businesses in India and the United Kingdom to translate the opportunities created by the India-UK Comprehensive Economic and Trade Agreement (CETA) into expanded trade, investment, partnerships and job creation. Addressing the Bu

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter