Scooters India Ltd. (SIL), a Public Sector Enterprise (PSE), was among the top 10 loss-making companies in India in 1989-90. It was setup in 1972 and continued to report losses till 1995-96. It carried a negative net-worth of Rs. 6.47 billion in 1995-96. The company was rejuvenated and has been reporting profits since then. The case study provides a rich insight into the implications of government ownership in PSEs that makes them sink or swim. Governments undertake two roles relating to business environment.