The Union Cabinet today approved the revival of Scooters India Limited, Lucknow (SIL) through infusion of funds of Rs. 90.38 crore as capex/working capital and financial restructuring through waiver/conversion of Government of India loan/interest to the tune of Rs.111.58 crore.
The Cabinet also approved the 2007 pay scales to the employees as per the Department of Public Enterprises (DPE) guidelines and enhancement of superannuation age from 58 years to 60 years.
The revival package will result in improvement in SIL's productivity through enhanced capacity utilization and improvement in efficiency, thereby leading to improved sales and employment generation for a product utilized for the needs of rural areas for economically weaker sections of society which is used for transporting goods and passengers.
The increase in production and sales will also result in enhanced contribution to the exchequer.
The company would stop incurring losses and will operate on a sustained profit basis. The company's net worth shall become positive and it shall come out of the purview of the Board of Industrial and Financial Restructuring (BIFR).
The current dependence of the company on Government of India for release of Non-Plan financial assistance for disbursement of salaries/wages and statutory dues to employees, shall also cease and the future of the employees of the company shall be secured. (ANI)