Scooters India losses pegged at Rs.18.44 crore this fiscal

August 2nd, 2011 - 7:43 pm ICT by IANS  

New Delhi, Aug 2 (IANS) The soon-to-be sold, state-run automobile manufacturer Scooters India is expected to suffer losses to the tune of Rs.18.44 crore in the current fiscal, according to a reply in the Rajya Sabha by Heavy Industries Minister Praful Patel.

The maker of the iconic Lambretta scooter, Scooters India will be sold to “a suitable strategic partner.”

“The government has approved the revival of Scooters India Limited by transfer of government equity to a suitable strategic partner,” said Heavy Industries and Public Enterprises Minister Praful Patel in a written reply in the Rajya Sabha Tuesday.

The government holds 95 percent stake in the total equity of the Lucknow-based firm.

“The completion of work requires passing of the resolution in parliament authorising the government to identify and induct a strategic partner,” he added.

The deal, will however, not involve sale of any assets of the company.

According to the figures made available in the reply, Scooters India has accumulated net losses to the tune of Rs.100.63 crore in the past four financial years starting 2006-07.

It produces three-wheelers under the brand name Vikram and has been incurring operational losses since 2002-03.

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