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Cabinet approves restructuring of Scooters India balance sheet

Auto News - Published on Fri, 25 May 2018

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PTI reported that the Centre approved restructuring of the balance sheet of loss-making PSU Scooters India, which manufactures three-wheelers under the brand-name 'Vikram'. The government's move is expected to clear a hurdle in the disinvestment process of Scooters India Ltd (SIL). The decision was taken at a meeting of the Cabinet Committee of Economic Affairs chaired by Prime Minister Narendra Modi. An official statement said that "The restructuring will be achieved by way of reduction of equity of INR 85.21 crore in the share capital of SIL held by the government against accumulated losses."

The reduction would be deemed to have taken effect as on March 31, 2013 and by way of freezing the interest on the non-plan loan of INR 1.89 crore released to SIL during 2012-13 from the date of its release to the company and conversion into equity of the outstanding principal amount of INR 1.89 crore.

The statement said that "With this approval, the balance sheets of Scooters India Limited from 2012-13 onwards will be regularised and further restructuring will be effected accordingly."

The government had earlier this year invited expression of interest (EoI) to sell its entire stake with transfer of management control in Scooters India (SIL).

In a global invitation, the heavy industry ministry had asked interested parties to submit the EoI on or before May 7, 2018. Scooters India Limited (SIL) is a PSU under the administrative control of the ministry.

The government had in-principle' decided to disinvest 100 per cent of its equity shareholding in SIL (which is equivalent to 93.74 per cent of the total paid-up equity share capital of SIL) through strategic disinvestment with transfer of management control.

The board of directors of SIL, in its meeting held on February 26, had accorded its consent to hive off non-core land of 89.69 acres out of total land of 147.499 acres subject to approval of shareholders and other regulatory authorities as applicable.

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Posted By : Rabi Wangkhem on Fri, 25 May 2018
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