Govt panel to script IDPL revival package

The expert committee set up by the ministry of chemicals and fertilizers to examine the future of the Indian Drugs and Pharmaceuticals (IDPL) will look into the possibility of reviving the company within the public sector set-up.

The committee would analyse the strengths of IDPL units and see what product basket can be expected from the company in future. According to sources, the fact that a lot of investment has already gone into the company will work in its favour.

Though a total revival of IDPL is unlikely, some of the units may be kept alive, sources said. The committee is to suggest a revival package for such units and also give a clear idea about the business model that they are to undertake. The final report is expected in April.

IDPL was declared sick by the Board for Industrial & Financial Reconstruction (BIFR) on the 12th August, 1992. A number of earlier revival packages have been rejected as non-viable, including the latest one that had recommended sale of real estate to fund a voluntary retirement scheme and revival of two units with the remaining amount.

According to sources, the fear of drug price increase in the product patent era, and also the chances of essential, low value drugs turning unavailable, may also influence the committee's decision on IDPL.

The committee in its report has pointed out that the majority of the employees had already utilised the VRS option for which the government had released funds to the extent of Rs 470.63 crores till January 31, 2004 towards implementation of VRS.

It also indicated that capacity utilization at IDPL is merely 4 per cent today.