THERE is a piece of good news for the tens of hundreds of employees in the beleaguered PSU Scooters India Limited. The government has recently said it had made progress in allocating financial aid to the public sector undertaking...to revive its operations. According to ministry of heavy industries and public enterprises, financial infusion of Rs.31.90 crore out of Rs 70.38 crore as equity and provision of Rs.20 crore as interest free plan loan for working capital have already been sanctioned.
The government has also waived interest of Rs.26.37 crore, conversion of plan loan of Rs.85.21 crore into equity.
Pon. Radhakrishnan, minister of State, heavy industries and public enterprises ministry told Parliament on August 14 that the age of retirement for the employees of the PSU has been increased from 58 years to 60 years and 2007 pay revision has also been implemented.
The financial assistance is a part of a revival scheme for the company which was approved by the union cabinet on January 31, 2013.
Scooters India Ltd reported a net profit of Rs. 10.80 crore for the quarter ended March 2014, boosted by a decline in expenses and other income.
The company had reported a net loss of Rs. 51.80 lakh for the corresponding quarter a year ago.
Net sales in the quarter under review stood at Rs. 48.44 crore, down 7.36 per cent from Rs. 52.29 crore last year.
Incorporated in 1972, Scooters India Limited is a Lucknow-based PSU and is a totally integrated automobile plant, engaged in designing, developing, manufacturing and marketing a broad spectrum of conventional and non-conventional fuel driven three-wheelers.
The plant owes its origin to M/s. Innocenti of Italy from which it bought over the plant and machinery, design, documentation, copyright etc. The company also possesses the world right of the trade name Lambretta/Lambro.
In 1975, company started its commercial production of Scooters under the brand name of Vijai Super for domestic market and Lambretta for overseas market. It added one more wheel to its product range and introduced three wheelers under the brand name of Vikram/Lambro.