The Cabinet on Thursday has approved the Rs 200-crore revival package for ailing public sector unit Scooters India Ltd (SIL).
An official statement said that the Cabinet has approved the revival plan through infusion of funds of Rs 90.38 crore as 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 guidelines and enhancement of superannuation age from 58 years to 60 years.
After the Government shelved a plan to sell its entire stake in SIL, the Department of Heavy Industry had proposed a revival package of more than Rs 200 crore.
The department had consulted the Board for Reconstruction of Public Sector Enterprises (BRPSE) that examined the case and later suggested a revival package for the sick three-wheeler manufacturer.
The company, which has around 1,200 regular employees, has been incurring losses since 2002-03.
Incorporated in 1972, SIL initially manufactured scooters under the brand name Vijai Super for the domestic market and Lambretta for overseas markets.
But, in 1997, it stopped manufacturing two-wheelers and concentrated only on manufacturing and marketing of three-wheelers under Vikram/Lambro brand.
The company with a market cap of Rs 157 crore, shares of SIL closed at Rs 36.55 on the Bombay Stock Exchange on Thursday, up 4.88 per cent from the previous close.