Cabinet approves closure of Scooters India: Sources

The company that manufactured famous scooters like Lambretta and Vijai Super will be shut down after the Cabinet gave its nod to a proposal to close the loss-making state-owned firm, sources said.The Cabinet Committee on Economic Affairs CCEA is believed to have given consent to shutting down of Lucknow-based Scooters India Ltd at its meeting on Wednesday, they said.The Scooters India brand name shall be sold separately as the company holds famous brands such as Lambretta, Vijai Super, Vikram and Lambro, shared an official.

PTI | New Delhi | Updated: 21-01-2021 15:17 IST | Created: 21-01-2021 14:33 IST
Cabinet approves closure of Scooters India: Sources
Representative Image

The company that manufactured famous scooters like Lambretta and Vijai Super will be shut down after the Cabinet gave its nod to a proposal to close the loss-making state-owned firm, sources said.

The Cabinet Committee on Economic Affairs (CCEA) is believed to have given consent to shutting down of Lucknow-based Scooters India Ltd at its meeting on Wednesday, they said.

The Scooters India brand name shall be sold separately as the company holds famous brands such as Lambretta, Vijai Super, Vikram and Lambro, shared an official. The company produces several types of three-wheelers under the Vikram brand.

The government's go-ahead to the closure proposal paves the way for the Heavy Industry Ministry to begin the process of winding up of the firm. As per the proposed plan presented to the Cabinet, Rs 65.12 crore required for closure of Scooters India Limited is being sought as loan with interest from the Government of India, sources said. The proposal also entails offering voluntary retirement scheme/voluntary separation scheme (VRS/VSS) to the regular employees rendered as surplus, once sufficient funds are available. The Lucknow-headquartered firm has around 100 employees. The employees not opting for VRS/VSS will be retrenched as per the Industrial Disputes Act, 1947, said the official who did not wish to be identified. Moreover, 147.49 acres of the company's land shall be returned to the Uttar Pradesh State Industrial Development Authority at mutually agreed upon rates. However, this process is expected to take time. The process of winding up of the company also involves delisting of its shares from the stock exchange under the Companies Act. The Centre has made several efforts in the past to find buyers for Scooters India and nurse the ailing firm back to health, but they have not yielded results.

In 2018, the government had invited expression of interest (EoI) to sell its entire stake with transfer of management control in loss-making Scooters India. Scooters India was incorporated in 1972. It was engaged in designing, developing, manufacturing and marketing a broad spectrum of conventional and non-conventional fuel driven three-wheelers.

In 1975, the company started commercial production of scooters under the Vijai Super brand for the domestic market and Lambretta for the overseas market. Later it also introduced three wheelers under the brand name of VIKRAM/LAMBRO.

In 1975, it started commercial production of scooters under the brand name of Vijay Super for domestic market and Lambretta for overseas market.

However, in 1997, the company strategically discontinued its two-wheeler production and concentrated only on manufacturing and marketing of three-wheelers.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Addressing conflict-related sexual violence at long last

... ...

Why unequal access to coronavirus vaccines is a threat to us all

... ...

India’s love affair with fossil fuels: the path to sustainable development?

... ...

Videos

Latest News

LOC of 2022 U-17 Women's World Cup launches Coach Education Scholarship Programme

The Local Organising Committee of FIFA U-17 Womens World Cup India 2022 with support from FIFA kicked off its Coach Education Scholarship Programme here to further develop womens football.As many as 21 aspiring coaches took part in the E-li...

World Athletics body pledges gender parity in its Council by 2027

World Athletics WA on Monday pledged to bring gender parity in its highest decision making body and in its administrative staff by 2027 to empower women by bringing them to leadership positions and breaking traditions regarding how the comp...

This women’s day, ixigo’s inspiring video #SehNa highlights the biggest challenges female travellers face

On the occasion of Womens Day, travel app ixigo has rolled out a campaign highlighting challenges faced by women travelling in India. The travel brand did a dipstick survey to understand the hurdles and risks women encounter while travellin...

Soccer-Serie A talking points

Talking points from the weekends Serie A matchesFIORENTINA A MESS OF THEIR OWN MAKING The return of Cesare Prandelli to Fiorentina is not working out, at all.Former Italy national team coach Prandelli, who managed La Viola between 2005 and ...

Give Feedback