Scooters India : Pulling out the Life Support System ?

 

 

Context :

Govt approves closure of Scooters India    /   Hindu – 29 Jan 2021

Extract :

 

The government has approved closure of loss-making state-owned firm Scooters India Limited and shutting down the operations of its units, the company said on Thursday. 

Besides, it has approved separating the regular employees rendered surplus due to the closure through voluntary retirement scheme / voluntary separation scheme ( VRS/VSS ).

The firm has around 100 employees. Scooters India was incorporated in 1972

In 1975, the company started commercial production of scooters under the Vijai Super brand for the domestic market and Lambretta for the overseas market.

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Here are my past notes / blogs / emails on Scooters India :

Ø  Flogging a dying horse …………………..( 28 Feb 1986 

Extract :

Ø  From the  "Dying Horse" article, we  find that neither  Bajaj nor HMT wants to even touch Scooters India

Ø  And no  wonder, since a similar  company in America  would perhaps employ  500 persons whereas Scooters India has employed 3500 persons

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Ø  We  are   not  in  a  hurry   !........................( 19 Mar 2018 )

      Extract :

Ø  That seems to be the attitude of India’s Union Governments of the past 32 years

Ø  The government has kicked off the process of selling its entire stake in Scooters India -marking the beginning of strategic sale of loss-making and non-core public sector entities that also has Air India on the list. 

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Ø  Close in India ? ………………………………………………….( 22 July 2015 )

 

    Extract :

Ø  SIL employs 1000 persons

Ø  Incurred losses from 2002 to 2012

Ø  Given Rs 200 crore revival package in 2013

Ø  Expected to make loss in 2015

Ø  Government could not find a buyer for SIL in2011

Ø  If SIL fails to revive , Government will try to divest again

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Dear Smt Sitharamanji,

Better late than never – although, sale of Scooters India is unlikely to bring in much revenue

But then , there are hundreds of PSUs which have been making HUGE LOSSES ( running into lakhs of crores of rupees , annually )

It is high time , this “  Life support System “ ( aka “  Tax-payer Money “ ) is withdrawn and these PSUs are allowed to die a “ Natural / Dignified “ death !

I hope , 3 days from now, when you present Annual Budget, one of your proposal would be to raise Rs 5 Lakh*Crore , through disinvestment

This is even more important than slightly revising upwards, Income Tax exemption limit

With regards,

Hemen Parekh  /  hcp@RecruitGuru.com / 29 Jan 2021