The government today deferred a decision on proposal to revive sick public sector unit, Scooters India Ltd (SIL).

"The Cabinet has deferred the proposal," a source said.

After the government shelved the plan to sell its entire stake in the state-owned firm, the Department of Heavy Industries (DHI) had proposed a revival package of more than Rs 200 crore.

The revival includes both cash and non-cash assistance by the government. While cash assistance implies equity infusion, grants and loans, non-cash assistance includes waiving interest, government loan and conversion of loan into equity.

Besides, the department had consulted the Board for Reconstruction of Public Sector Enterprises, which had examined the case and later suggested a revival package.

In 2011, the Cabinet had given its approval for divesting the government's entire 95.38 per cent stake in Scooters India to a private player through strategic route (outright sale). But the DHI decided to put it on hold.

The automobile company, which has about 1,200 regular employees, has been incurring losses since 2002-03. In March 2009, the company was declared sick.

Incorporated in 1972, Scooters India initially manufactured scooters under the brand name Vijai Super for the domestic market and Lambretta for overseas markets.

Later, it ventured into the three-wheeler segment with the Vikram brand. In 1997, it stopped manufacturing two- wheelers and is now engaged in the manufacture and marketing of only three-wheelers.

The company's net loss (before tax) stood at about Rs 20 crore during the 2011-12 fiscal.

Scooters India scrip was trading at Rs 35.75, up 4.99 per cent from its previous close on the BSE during the afternoon trade.