New Delhi: In move to revive sick companies, the Union Cabinet has decided to sell the Government’s entire stake in loss making Lucknow based Scooters India Ltd.
  
Union Minister for Information and Broadcasting, Ambika Soni said, “It is proposed to revive the company through the induction of a strategic partner by offloading entire government stake of around 95 per cent”

This will require the approval of both the Houses of Parliament and the Disinvestment department will be entrusted with this task of completing the procedure, said the Union Minister.

New buyer will get 95 per cent stake, while 5 per cent stake will be given to banks, financial institutions and others. After the announcement of Cabinet, Rajkot based Atul Auto said it is willing to acquire government shareholding in the firm, while Mahindra and Mahindra claimed that it will take decision on the issue within 45 days.

Scooters India Ltd manufactures the popular brand of three wheelers `Vikram.’ The firm’s inherent inefficiencies, low productivity, old technology and ageing work force led to its deteriorating condition.

Government sources said if the strategic sale of Scooters India proves successful, the Government could line up more state-run firms for disinvestment. 

National Democratic Alliance (NDA) Government had disinvested the several state-run firms, however the move was stopped by the United Progressive Alliance (UPA).

JPN/Bureau