Govt mulls selling stake in SIL

Favouring outright sale of closed PSUs, Heavy Industries Minister Praful Patel said on Friday the ailing Scooters India Limited could be considered for complete privatisation.

"There are a lot of companies under the Ministry of Heavy Industries, like Scooters India, which need to be looked at differently... Some disinvestment, some outright sale," said Patel on the sidelines of an AIMA event.

He said unless Scooters India Ltd gets fresh capital infusion, it cannot survive for long as it is not in a good financial position.

Government was earlier considering a joint venture with private sector for revival of SIL, which has piled up a loss of Rs 22.03 crore in the fiscal 2009-10.

Patel

had earlier said there was an "absolute" case for privatisation of PSUs that have remained closed.

Government holds 95.38 per cent in Scooters India. Its Shares hit the upper circuit on Friday and jumped 10 per cent to Rs 28.15 on the BSE.

Located near Lucknow, Scooters India is an integrated automobile plant, engaged in designing, developing, manufacturing and marketing a broad spectrum of conventional and non-conventional fuel driven 3-wheelers.