Government kicks off divestment process, Scooters India majority stake for sale

The EoIs are required to be submitted by May 7, 2018. The Lucknow-based Scooters India (SIL) manufactures three-wheelers under the brand name Vikram. The state-owned firm made a net loss of Rs 10.3 crore in the 2016-17 against a profit of Rs 5.48 crore which was reported the year before.

According to reports, Resurgent India has been appointed by the Department of Investment and Public Asset Management to be the adviser to manage the transaction.

Before the disinvestment, the company will break away from off non-core land of 89.69 acres. The firm has a total land of 147.499 acres.

“The Government of India has ‘in-principle’ decided to disinvest 100% of its equity shareholding in SIL (which is equivalent to 93.74% of the total paid-up equity share capital of Scooters India) through strategic disinvestment with the transfer of management control,”  the invite, accessed by the daily said.

Pawan Hans, Bharat Earth Movers, Dredging Corporation and Air India, are among the 17 that have been given the in-principle nod for strategic disinvestment.

The selection is based on the criteria devised by NITI Aayog – “high priority” and “low priority”. The priorities are based on national security, sovereign function at arm’s length, and market imperfections and public purpose. Those falling in the ‘low priority’ are in the strategic disinvestment list.