House Panel Seeks Fresh Idpl Revival Package Within A Month

The parliamentary standing committee on petroleum and chemicals has asked the government to come out with a new revival package for the Indian Drugs and Pharmaceuticals Ltd (IDPL) within a month and has stated that the drugmakers revival is a must to ensure health for all by 2000 programme.

The PSU was referred to BIFR in 1992. The first revival package, approved in February 1994, did not succeed. Later, a modified revival package was submitted.

This plan was sent to BIFR, which directed the operating agency, the Industrial Development Bank of India (IDBI) to appoint a consultant to examine the plan on unit-wise basis.

A F Ferguson, appointed by IDBI, in its report said Rs 130 crore would be needed for modernisation, purchase of technology and consolidation of the formulation facility at one place. The report also recommends drastic cut in manpower from the present level of 7,600 to 2,400.

IDBI estimates that the cost of implementing these suggestions would be around Rs 710 crore. Even if the measures are implemented, the projected gross profit of IDPL would not be adequate to service the new liabilities, says IDBI.Expressing doubts about the expertise of the consultants appointed by IDBI, the committee has asked the government to review the reports of the experts.

One of the areas for funding the revival package could be through sale of surplus land, which could fetch around Rs 160 crore. The committee feels that this should be done urgently in a transparent manner to raise funds to revive production.

One of the reasons for the dwindling condition of IDPL, according to the committee, is central and state government departments not placing orders with the PSU.