The Hindu Business Line : Panel seeks time to submit report on IDPL revival

IT has been more than 12 years since Indian Drugs and Pharmaceuticals Ltd (IDPL) was declared sick. But the company will have to wait a little longer before an evaluation of its prospects for revival is completed.

An expert committee going into the techno-financial feasibility of rehabilitating IDPL has sought an extension from the Ministry of Chemicals and Fertilisers for submitting its report. The committee was slated to submit its report by October 2004.

"The committee has asked for a three-month extension, but the Government is likely to grant only two months. The report is now expected by December 31," said Mr Pratyush Sinha, Secretary, Chemicals and Petrochemicals.

A Government-owned drug company, IDPL came onto the revival radar after Hindustan Antibiotics Ltd. And the strategy is in line with the current Government's common minimum programme, which envisages that ailing public sector units (PSUs) be given fresh lease of life, according to Mr Sinha.

Hindustan Antibiotics is already on the path to getting a revival plan approved by the Government. The course of any revival plan for IDPL would, however, depend on the report from the expert committee.

Incorporated in 1961, IDPL had a presence in antibiotics, anti-fungals, anti-hypertensives, anti-malarials and fluoroquinolones, to mention just a few. Initially, the company had five manufacturing units at Gurgaon, Hyderabad, Rishikesh, Chennai and Muzaffarpur. Subsequently, as part of its first revival package, Muzaffarpur and Chennai were hived off as two wholly owned subsidiaries in 1994.

Also, IDPL originally had three joint sector undertakings - Uttar Pradesh Drugs & Pharmaceuticals Ltd (UPDPL), Rajasthan Drugs & Pharmaceuticals Ltd (RDPL) and Orissa Drug & Chemicals Ltd (ODCL) - promoted in collaboration with respective States.

UPDPL has, however, been converted into a wholly owned unit of the UP Government, according to data from the Ministry.

As the company takes one more shot at its revival, it has run up an accumulated loss and total liability that is provisionally estimated at over Rs 2,827 crore and Rs 2,747 crore respectively, against the paid-up capital of Rs 116.88 crore as on March 31, 2004 as per data provided by the Government.

IDPL has been incurring losses since its inception except for a brief period of five years from 1974-75 to 1978-79.

Meanwhile, the Government has released funds of an estimated Rs 470.63 crore, till January 31, 2004, towards the implementation of VRS.

As a result, the total strength of 6,592 employees (inclusive of both wholly owned subsidiaries as on December 31, 2002) has been reduced to 440 employees as on September 9, 2004, according to data from the Government.

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