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.
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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.