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

Demonetisation: When cash played peek-a-boo

Post-demonetisation, cash did the Houdini vanishing trick at ATMs. With currency notes playing hide and seek, life was sheer misery. Things improved a bit, but the situation is back to square one. The ATMs are running dry, yet again. Rajiv Bajaj, scion of the family that makes hugely popular

Stories you must read over the weekend

  Tribals in the land of the legendary Birsa Munda in Jharkhand are fighting against the amendments of the Chotanagpur Tenancy Act (CNTA) and Santhal Pargana Tenancy Act (SPTA). These were hastily changed by the BJP government – first by an ordinance in June, and then, amendments i

NHRC recommendations cannot be set aside with impunity: justice Bhandari

  Recommendations by the National Human Rights Commission (NHRC) cannot be set aside with impunity merely on the ground that it is a recommendatory body,” said justice Dalveer Bhandari, member, international court of justice.    Addressing the meet

NALCO mines get 5-star rating for sustainable development initiatives

   The Panchpatmali bauxite mines of national aluminum company limited (NALCO) has been conferred with a 5-star rating by the ministry of mines.   The 5-star rating award, along with a certificate of excellence was handed over to Tapan Kumar Chand, CMD,

Some Odisha coal mines not being fully utilised

It is a fact that some of the opencast projects (OCP) of Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India Limited, are not being utilised up to their full capacity despite having good potential for coal production, the Lok Sabha was informed. Union minister Piyush Goyal said tha

MGNREGS: 21 states have performed below par

In Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the average persondays generated at the national level is 39 days per rural household in the financial year (FY) 2016-17 (as on February 1, 2017). During the same period, 21 states have reported average persondays per household lower t

Video

आतंकियों की नकेल कसने में जुटा पाकिस्तान
Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter