Loss-making automaker Scooters India, which the Heavy Industries Ministry is planning to put up for “strategic sale”, has got full-time Chairman and Managing Director.
Renati Sreenivasulu, Deputy General Manager of Rashtriya Ispat Nigam Limited (RINL) has been appointed the CMD of the company. He takes over from Vinita Srivastava, Director in the Ministry of Heavy Industries & Public Enterprises, who was holding additional charge of the post.
The Heavy industries ministry is likely to soon seek Cabinet approval for “strategic disinvestment” of the loss making automaker. Strategic disinvestment denotes sale of substantial portion of government shareholding in identified CPSEs up to 50 per cent or more, along with transfer of management control.
There have been talks about disinvestment of Scooters India in the past but successive governments could not implement the plan due to divergent views among various stakeholders including employees.
Despite government’s revival attempts including sanctioning a “financial package”, Scooters India continued to incur losses over a long period and eventually was declared “sick”.
The disinvestment in Scooters India is part of the government’s larger plans of strategic stake sale in central public sector enterprises (CPSEs).
The company used to manufacture the popular Lambretta scooters.