The Cabinet today approved a Rs 1,400 crore package for Indian Drugs and Pharmaceuticals Ltd, which would help the ailing public sector unit cleanse its balance sheet thus preparing itself for privatisation.
An official spokesperson said the Cabinet cleared the conversion of a Rs 500 crore loan into equity, interest waiver of Rs 670 crore, besides payment of about Rs 100 crore for outstanding statutory dues.
The Rs 1,400 crore package cleared by the Cabinet also include around Rs 150 crore funding for a voluntary retirement scheme and Rs 20 crore for the government's guarantee fee, the spokesperson said.
Also Read
The Cabinet also asked the Board for Industrial and Financial Reconstruction (BIFR) to invite fresh proposals for privatising IDPL units, including 100 per cent owned subsidiaries at Chennai and Muzzaffarpur, she said.
The privatisation of IDPL could be through induction of strategic partners, the spokesperson added.
BIFR could explore the possibilities of selling all the units together or individually, she added.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app