Cabinet defers Scooters India stake sale
17 January 2013
statesman news service
NEW DELHI, 17 JAN: The Union Cabinet today deferred the proposal to sell its entire stake in the state-owned firm, Scooters India, as the Department of Heavy Industries (DHI) had proposed a revival package of more than Rs 200 crore.
The revival includes both cash and non-cash assistance by the government. While cash assistance implies equity infusion, grants and loans, non-cash assistance includes waiving interest, government loan and conversion of loan into equity.
Besides, the department had consulted the Board for Reconstruction of Public Sector Enterprises, which had examined the case and later suggested a revival package.
In 2011, the Cabinet had given its approval for divesting the government’s entire 95.38 per cent stake in Scooters India to a private player through strategic route (outright sale). But the DHI decided to put it on hold.