Friday, 29 January 2021

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It is high time , this “ Life support System “ ( aka “ Tax-payer Money “ ) is withdrawn and these PSUs are allowed to die a “ Natural / Dignified “ death !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

Price Increase even before Budget announcement ?

Context :

Parliament Canteen Drops Subsidy on Food, Now Non-Veg Buffet to Cost Rs 700, Veg Thali at Rs 100

Extract :

Ø The Parliament will serve an elaborate menu this Budget session, but no more at a stealing price as the Lok Sabha Secretariat does away with the subsidies on the food in the canteen for the country’s lawmakers

Ø While Birla did not specify the financial implications of the move, sources said the Lok Sabha Secretariat can annually save more than Rs 8 crore with the subsidy coming to an end.

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In the following comparative tabulation , the prices listed for 2016, are based on my following blog :

Ø Our Poor MPs ! ………………………….[ 11 Dec 2015 ]

- where I wrote :

Ø Now , they have a legitimate reason to pass a resolution , raising their salaries by 65 %

GST can wait !

Ø How else can they make two ends meet when current food prices ( listed below ), in the Lok Sabha Canteen , are about to be revised upwards by 65 % ?

( This demand for 65 % salary rise , was in 2015 Lok Sabha session )

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Item	Price ( Rs ) / 2016	Price ( Rs ) / 2021	Increase %
Tea	1.0
Soup	5.5
Daal	1.5	20.0	1200
Meals	2.0
Chapati	1.0	3.0	300
Dosa ( plain )	6.0	30.0	500
Veg Biryani	8.0
Fish	13.0
Chicken Biryani	51.0	100.0	100
Shami Kabab	14.0
Thali	18.0

Aloo Bonda ( 1 pc )		10.0
Boiled Vegetables		50.0
Bread Pakora		10.0
Chicken Curry ( 2 pc )		75.0
Chicken Cutlet ( 2 pc )		100.0
Chicken Fry ( 2 pc )		100.0
Curd		10.0
Dahi Bhat ( with pickle )		40.0
Dosa Masala		50.0
Egg Curry ( 2 pc egg )		30.0
Finger Chips		50.0
Fish & Chips ( Bosa Fish )		110.0
Idly with Chutny ( 2 pc )		20.0
Idly wit Sambhar / Chutny		30.0
Kachi Pakora		30.0
Kesri Bhat		30.0
Khichdi with Achar		50.0
Lemon Rice		30.0
Masala Dal Vada ( 2 pc )		30.0
Medu Vada ( 2 pc )		30.0
Mutton Biryani		150.0
Mutton Curry ( 2 pc )		125.0
Mutton Cutlet ( 2 pc )		150.0
Omelette Masala ( 2 eggs)		25.0
Omelette ( plain )		20.0
Veg Pakora ( 6 pc )		50.0

My Take :

Ø 3 days from now ( on 01 Feb ), Smt Sitharamanji will present Annual Budget

Ø 16 opposition parties have resolved to boycott President’s Address to the Budget Session

Ø No doubt, Opposition Parties will raise the issue of “ Repeal of Farm Laws “

Ø They will insist on a law , guaranteeing MSP for all crops

Ø In view of this , the Govt could have postponed the withdrawal of “ Food Subsidy “ in Lok Sabha Canteen, until after the Budget

Ø But that is now , a “ fait accompli “

Ø I would not be surprised that , as a “ Damage Control Measure “ , one of the BJP member of Lok Sabha is secretly instructed to raise the issue of the “ Rise in Canteen Food Prices “ – and demand that salary of MPs be raised by 400 % to neutralize this “ draconian / unwarranted “ withdrawal of “ food subsidy “ . Expect all opposition members – cutting across party lines – to support this demand unanimously !

In the meantime, 1370 million Indian Citizen are wondering :

Ø Where in India , can we get those food items served in Lok Sabha Canteen , at these new revised prices ?

Ø Can our MPs pass a law mandating LS Canteen to open branches , all over India ?

I am not going to miss the budget speech of Finance Minister on 01 Feb !

With regards,

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