Govt approves closure of Scooters India

Govt approves closure of Scooters India [ad_1]

The agency has round 100 staff.

The authorities has permitted closure of loss-making state-owned agency Scooters India Limited and shutting down the operations of its items, the corporate stated on Thursday. PTI had reported a week ago that the Cabinet Committee on Economic Affairs (CCEA) is believed to have given its consent to the closure of the Lucknow-based firm.

In a BSE submitting, Scooters India stated the Ministry of Heavy Industry and Public Enterprises has communicated that the competent authority has permitted the closure. It has additionally cleared looking for a mortgage (with curiosity) of ₹ 65.12 crore required for the closure from the Government of India.

Besides, it has permitted separating the common staff rendered surplus because of the closure by way of voluntary retirement scheme / voluntary separation scheme (VRS/VSS).

The staff not choosing VRS/VSS will probably be retrenched as per the provisions of the Industrial Disputes Act, 1947.

The agency has round 100 staff.

The Scooters India model title shall be bought individually as the corporate holds well-known manufacturers corresponding to Lambretta, Vijai Super, Vikram and Lambro. The firm produces a number of sorts of three-wheelers underneath the Vikram model.

“Before closure of the company, the trademarks/brands available with the company are to be monetized and the proceeds are to be utilised for the closure process,” the submitting stated. If the corporate fails to monetise the identical in a well timed method, the manufacturers/emblems will probably be vested within the Government of India with a proper to vest the identical in one other authorities firm. The disposal of the plant/equipment and movable property will probably be achieved by way of e-auction by MSTC Limited, the submitting stated. Moreover, 147.49 acres of the corporate’s land shall be returned to the Uttar Pradesh State Industrial Development Authority at mutually agreed upon charges. The authorities’s go-ahead to the closure proposal paves the way in which for the Heavy Industry Ministry to start the method of winding up the agency.

The course of of winding up additionally includes delisting of its shares from the inventory trade. The Centre has made a number of efforts up to now to seek out consumers for Scooters India and nurse the ailing agency again to well being, however they haven’t yielded outcomes.

In 2018, the federal government had invited expression of curiosity (EoI) to promote its total stake with switch of administration management in Scooters India.

Scooters India was integrated in 1972. It was engaged in designing, growing, manufacturing and advertising a broad spectrum of standard and non-conventional gasoline pushed three-wheelers.

In 1975, the corporate began industrial manufacturing of scooters underneath the Vijai Super model for the home market and Lambretta for the abroad market. Later, it additionally launched three wheelers underneath the model title of Vkram/Lambro.

However, in 1997, the corporate strategically discontinued its two-wheeler manufacturing and concentrated solely on manufacturing and advertising of three-wheelers.

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