The government has agreed to provide funds on a need based basis to revive sick public sector pharmaceutical undertaking Indian Drugs and Pharmaceuticals Ltd (IDPL).
A Memorandum of Understanding has been signed between Department of Pharmaceuticals and IDPL to make it a 'vibrant drug manufacturing company', setting targets, including to achieve at least 5 per cent growth in sales and 5 per cent reduction in inventory of finished goods over 2013-14.
IDPL's sales turnover is estimated to be Rs 63 crore and a net loss of Rs 309.01 crore as on March 31, 2014.
According to the MoU, the government support is being provided with the aim to manufacture and supply essential medicines, and generic drugs for supply to central and state government organisations and pharmacies at reasonable prices.
It further said, the other objective is to help meet the emergency needs of the country for supply of medicines during natural calamities.
As per the MoU, government support would also help to modernise, upgrade and improve production facilities in tablet and capsule section at Rishikesh, Chennai and Gurgaon plants.
Draft Rehabilitation Scheme (DRS) for revival of IDPL has been submitted and cabinet note for revival is on process.
A action plan for implementation and monitoring of the MoU has also been signed under which IDPL will monitor monthly and quarterly implementation of the pact, while Dept of Pharmaceuticals will do the same for the half year.
The Department of Public Enterprises has been entrusted with monitoring the implementation of MoU on a yearly basis.
IDPL is the largest central pharma public sector undertaking in India with plants at Rishikesh, Gurgaon & Hyderabad and two subsidiary units at Chennai and Muzaffarpur.
It was formally declared sick by the Board for Industrial & Financial Reconstruction (BIFR) on August 12, 1992.
