Shinde for freeze on HAL unit closure

Shinde has, instead, proposed a revival plan through the disposal of land owned by the facility. The firm is believed to hold in excess of 350 acres.

Shinde said: "I have written to the Prime Minister as well as the minister for chemicals and fertilizers Sukhdev Singh Dhindsa on the issue today. HAL is currently before the Board for Industrial and Financial Reconstruction (BIFR) which will hold a winding up hearing on November 27."

The 1954-established HAL is engaged in the manufacturing of the wonder drug penicillin and was a profit making unit right up to 1973.

"In 1977, the company was declared sick and was placed before the BIFR. I believe that the unit's revival is possible. Even the financial institutions have expressed a willingness to go ahead with the revival proposal and a settlement is also possible in this regard."

The BIFR as well as the financial institutions (lenders of HAL) like State Bank of India had in 2002 rejected a proposal mooted by the Industrial Development Bank of India (IDBI) to sell the public sector drug company for a consideration of Rs 5 crore.

BIFR had then directed IDBI to come up with a viable package for reviving HAL and the institution has already initiated fresh talks with the HAL management to revive the operations of the company.

An open bid invited in June 2002 saw the Mumbai-based KP Sales Group evincing interest to acquire HAL. The bid was subsequently rejected as the Rs five crore price offered by KP Sales Group was deemed to be too low to even consider.