Govt could sell its entire stake in Scooters India: Patel
Favouring outright sale of closed PSUs, Heavy Industries Minister Praful Patel on Friday said the ailing Scooters India could be considered for complete privatisation.business Updated: Feb 04, 2011 15:09 IST
Favouring outright sale of closed PSUs, Heavy Industries Minister Praful Patel on Friday said the ailing Scooters India could be considered for complete privatisation.
"There are a lot of companies under the ministry of Heavy Industries, like Scooters India, which needs to be looked at differently... Some disinvestment, some outright sale," Patel said on the sidelines of a AIMA event.
He said unless Scooters India Ltd (SIL) gets fresh capital infusion, it cannot survive for long as it is not in a good financial position.
Government was earlier considering a joint venture with private sector for revival of SIL, which has piled up a loss of Rs 22.03 crore in the fiscal 2009-10.
Patel had earlier said that there was an "absolute" case for privatisation of the PSUs which have remained closed.
Government holds 95.38 per cent in Scooters India.
Its Shares hit the upper circuit today and jumped 10% to Rs 28.15 on the BSE.
Located near Lucknow, Scooters India is an integrated automobile plant, engaged in designing, developing, manufacturing and marketing a broad spectrum of conventional and non-conventional fuel driven 3-wheelers.