NEW DELHI, MARCH 17: The public sector Scooters India Ltd (SIL) is in talks with two foreign automobile companies, including Piaggio Spa of Italy, for a collaboration in manufacture of three-wheelers.Confirming the move, official sources said that SIL expects to finalise the joint venture partner in the next few weeks. At this stage, it is not certain whether the collaboration would be purely technical or include equity partnership also."The government is keen to revive the company and wants it to become viable", sources said. Earlier, Scooters India appointed international consultants - Coopers and Lybrand to scout for a partner. Coopers & Lybrand is inviting bids to find a partner for the company. The cabinet has already decided to divest a majority stake in the public sector company. The government intends to retain 26 per cent stake in the PSU.The Italian major, which is one of the largest two wheeler manufacturers in the world, has already entered into a memorandum of understanding (MoU) withGreaves for three wheelers.As per the MoU, Piaggio will hold 51 per cent with Greaves Ltd holding the balance 49 per cent in the proposed joint venture. The joint venture company will be operational by April-May 1998. The existing facilities at the Greaves plant in Baramati, Maharashtra, will also be the main manufacturing base for the new joint venture. The joint venture company to be called Piaggio Greaves Vehicles Ltd will manufacture new generation three-wheelers - both passenger and good carrier version.The nature of tie-up with Scooters India is still being discussed if it ties up with Piaggio, since the Italian auto major already has a collaboration with Greaves for three-wheelers, sources stated. For Piaggio, the tie-up with Greaves is the second in India. The Italian two-wheeler auto major has a joint venture with LML Ltd, to make scooters. SIL, which recently came out of the red, is also developing the country's first electric vehicle.
