Cabinet Committee on Economic Affairs (CCEA) approved the closure of state-owned Scooters India Limited (SIL). The company is being closed as it has been only accumulating losses.
- SIL was founded in 1972 and is known for its scooters like Lambretta, Lamby, Vijai Super, Vikram & Lambro. It has manufactured both Two-wheelers and three-wheelers, however since 1997 it discontinued its 2-wheeler manufacturing process.
- It is based out of Lucknow, Uttar Pradesh (UP).
i.Currently there are around 100 employees in the company.
- They will be offered Voluntary Retirement Scheme/Voluntary Separation Scheme (VRS/VSS).
- The employees not opting for VRS/VSS will be retrenched as per the provisions of the Industrial Disputes Act, 1947.
- SIL has also requested the Government of India to provide a loan (with Interest) of INR 65.12 Crore for the Closure of the firm.
- The closure process will be carried out by the Ministry of Heavy Industries & Public Enterprises.
- If the company fails to monetize the same in a timely manner, the brands/trademarks will be vested in the Government of India with a right to vest the same in another government company.
ii.In the past, Government’s search for finding buyers for SIL were unsuccessful,
- In 2018, Government invited Expression of Interest (EoI) for selling its entire stake with transfer of management control in Scooters India.
Recent Related News:
i.On December 30, 2020, Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister (PM) Narendra Modi has approved Rs.3,004.63 Crore project to turn Paradip Port in Odisha into a world-class port.
About Scooters India Limited (SIL):
Chairman & Managing Director (CMD) – Sreenivasulu
Headquarters – Lucknow, UP
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