The Hindu Business Line : Govt approves revival of IDPL

THE Chemicals and Fertilisers Ministry has decided to revive all the five ailing units of Indian Drugs and Pharmaceuticals Ltd (IDPL) at an estimated cost of Rs 200 crore.

The decision was taken at a high-level meeting chaired by the Chemicals and Fertilisers Minister, Mr Ram Vilas Paswan, based on the recommendations of an expert committee constituted by the Government.

The revival decision is pending with Appellate Authority for Industrial and Financial Reconstruction (AAIFR).

Government officials said that the AAIFR would be informed of its decision at the next hearing scheduled for September 13. Thereafter, a detailed revival package for IDPL would be finalised.

The previous Government had decided to close down IDPL and most of the employees were offered voluntary retirement.

However, the current Government is in favour of giving IDPL a new lease of life to ensure availability of medicine to the poor at affordable prices.

The five units of the company located at Gurgaon, Chennai, Hyderabad, Muzaffarpur, and Rishikesh will be revived in a phased manner.

The restructuring will commence on October 1 and is likely to be completed within two-and-a-half years.

In order to ensure timely implementation of the revival process and release of required funds for this purpose, it was decided to form a high-level committee headed by Dr J.S. Maini, Additional Secretary and Financial Adviser, Chairman and Managing Director of IDPL, Joint Secretary (Chemicals), and Director of National Institute for Pharmaceutical Education and Research (NIPER). It was also decided to appoint NIPER as the external consultant for the revival process.

Funds would also be infused to ensure that IDPL's manufacturing practises meet global standards.

The facilities at Gurgaon, Rishikesh, and Chennai produce medicines while the chemical plant at Muzaffarpur and bulk drug and formulation plant at Hyderabad are closed. The renovation and upgradation work of the plants at Muzaffarpur and Hyderabad would start soon.

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