Lok Sabha Question No. 3271 (UNSTARRED), answered on 2018-08-07
Subject: Scooters India Limited
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: RADHESHYAM BISWAS

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES DEPARTMENT OF HEAVY INDUSTRY

## LOK  SABHA UNSTARRED QUESTION NO. 3271 TO BE ANSWERED ON. 07.08.2018

## Scooters India Limited

## 3271. SHRI RADHESHYAM BISWAS:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

- (a)  whether  the  Government  has  decided  to  end  its  95  per  cent  share  holding  in  Scooters  India Limited;
- (b) if so, the reasons therefor;
- (c) whether the Scooters India Limited is a leading manufacturing unit in the country and if so, the details thereof;
- (d)  whether  the  Government  has  identified  strategic  participation  and  decided  the  terms  and conditions in this regard;
- (e) if so, the details thereof; and
- (f) the steps taken by the Government for revamping Scooters India Limited, so far?

## ANSWER

## MINISTER  OF  STATE IN THE MINISTRY OF  HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI  BABUL SUPRIYO)

- (a)  &  (b):  NITI  Aayog  has  identified  certain  CPSEs,  including  Scooters  India  Limited(SIL)  for strategic  disinvestment,  which  are  not  considered  as  'High  Priority'  for  the  Government,  where private  sector  can  bring  in  value  through  fresh  investment,  technical  upgradation  and  better management.  The  recommendations  of  NITI  Aayog  were  considered  and  endorsed  by  the  Core Group  of  Secretaries  on  Disinvestment  (CGD).  The  Cabinet  Committee  on  Economic  Affairs (CCEA),  thereafter  accorded  'in-principle'  approval  in  the  meeting  held  on  27/10/2016  for disinvestment  of  entire  Government  of  India  shareholding  of  93.74%  in  Scooters  India  Ltd.  to  a strategic buyer to be identified through 2 stage auction process.
- (c):  No  Madam.  There  are  other  bigger  players  in  the  same  segment  in  the  country.    SIL  has  a domestic market share of 0.44% in the three wheeler segment in the year 2017-18, as per SIAM data.
- (d):  No  Madam . The  process  of  disinvestment  is  underway  as  per  the  guidelines  issued  by  the Department of Investment and Public asset Management (DIPAM).
- (e): In view of reply to (d) above, not applicable .
- (f): Scooters India Limited (SIL) was declared sick in 2010 and came under the purview of BIFR. As  per  the  proposal  for  Revival  of  Scooters  India  Limited  (SIL),  approved  by  the  CCEA  on 31.01.2013, the following assistance has been envisaged/provided to SIL:
- (i) Infusion of fund of Rs.70.38 crore as equity by GoI for capital expenditure.

- (ii)    Rs.20 crore as interest free plan loan by GoI for working capital.
- (iii)     Conversion of Plan & Non plan Loan of Rs.85.21 crore, outstanding as on 31 st March 2012, into equity.
- (iv) Waiver interest accrued and due of Rs. 26.37 crore as on 31 st March, 2012.

CCEA on 23.05.2018 had also approved assistance to SIL as under:

- (i)   Reduction of equity of Rs. 85.21 crore in the share capital of SIL held by Government of India against accumulated losses (effective as on 31.03.2013).
- (ii) Freezing the interest on the Non-Plan loan of Rs. 1.89 crore released to SIL during 2012-13 from the date of its release to the company and
- (iii) Conversion of the outstanding principal amount of Rs. 1.89 crore into equity.

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