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R. Savitha

Pune , Oct. 6

THE Mazdoor Sangh of Hindustan Antibiotics Ltd is to submit a memorandum of understanding (MoU) to the Board for Industrial and Financial Reconstruction (BIFR) on October 13 with a scheme for the revival of the company.

The BIFR had issued notice under Section 20 (1) of the Sick Industrial Companies (Special Provision Act) and the BIFR Regulations, 1987 for the proposed winding up of the company on September 5 and is to take up the matter for hearing on November 27.

Talking to Business Line, Mr Madan Phadnis, Vice-President of the Sangh, said under the scheme, a moratorium should be declared on the loan amount of Rs 169 crore and no interest should be paid for a period of five years. "After five years, it could be decided as to how to repay the amount,'' he said.

Mr Phadnis, however, said that for the scheme to be successful, it was necessary to fight on the political front as also garner mass movement from the public for revival of the company. As per the BIFR notice there was no viable and agreed rehabilitation proposal with means of finance fully tied up for consideration before the Board. If the scheme proposed by the union were to succeed, much would depend on the Government stand on the issue, he said.

The employees, however, have agreed to accept privatisation, provided the private company offered job guarantee, accepted their charter of demands and offered VRS (voluntary retirement scheme).

However, Mr Phadnis said there were no company in the country which had come forward to take up the ailing HAL. Hindustan Antibiotics was not a commercial organisation or a factory but a company, which manufactured life saving drugs essential for the public health.

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