Writing in Hindustan Times ( 23 July 2015 ) , Timsy Jaipuria
provides following information about Scooters India Ltd (SIL) :
* SIL employs 1000 persons
* Incurred losses from 2002 to 2012
* Given Rs 200 crore revival package in 2013
* Expected to make loss in 2015
* Government could not find a buyer for SIL in2011
* If SIL fails to revive , Government will try to divest again
All of these reminded me of the following letter that I wrote to 7,500 employees of L&T Powai Works ( individual copies in English and Marathi ), some 30 years back :
28 Feb 1986
Dear Friends :
FLOGGING A DYING HORSE
This is because the enclosed article ( Dying Horse ) about SIL is almost 18 months old.
And as of Dec. 31, 1985, we have such 93,282 dying (or dead?) horses in our country.
These are known as ” Sick Units ”
What I do not know is whether the above mentioned figure includes public-sector ( Govt. owned ) sick-units or not.
Most of these are sick – in fact VERY SICK. If you wish to know how “sick”, here are some “temperature-readings” :
Government Unit ( PSU )………. Loss in last 3 years ( Rs Crores )
|1.||Engineering Projects India Ltd. (EPI)……………90|
|2.||Hindustan Steelworks Const. Ltd. (HSCL)……….67|
|3.||Cycle Corporation of India Ltd. (CCIL)………… 8.8|
|4.||Scooters India Ltd. (SIL)………………………… 50|
|5.||Tanneries & Footwear Corp. of India Ltd.(TAFCO)..5|
I understand that the Govt. is planning to wind-up (close-down) the first 3 units and merge the remaining 2 units with some successful public or private sector company.
From the “Dying Horse” article, we find that neither Bajaj nor HMT wants to even touch Scooters India !
And no wonder
A similar company in America would perhaps employ 500 persons whereas Scooters India has employed 3500 persons .
Reminds me of Bombay Municipality !
If you do not believe me, next time stop and count the number of persons pretending to dig a hole for a faulty telephone cable !
How long before some of us muster enough courage to ask
“Am I my brother’s keeper?”
H C Parekh
General Manager ( Powai )
It seems , since I wrote the above-listed letter , things have not changed ! May be the ” Industrial Sickness ” has spread
May be we need to launch another initiative called , ” Close in India ” !
And permitting 100 % FDI in sick units could be another ” Out of Box ” solution worth considering ! Nothing to lose but something to gain
And , the beauty is , no political party will oppose such ” Privatization ” !
— hemen parekh
23 July 2015