The Hindu Business Line : Centre sanctions Rs 44 cr for Hind Antibiotics revival scheme

The 1,800 employees of the Pune-based Hindustan Antibiotics Ltd have something to cheer about. The Central Government has sanctioned Rs 44 crore for the company's revival, which is part of the Rs 136 crore rehabilitation package. The remaining Rs 92 crore is expected to be released by the end of August.

Mr Arun Bhorade, General-Secretary, Hindustan Antibiotics Mazdoor Sangh, told Business Line out of the first instalment of Rs 44 crore, about Rs 34 crore would be used for the VRS of the employees while the remaining would be spent on upgradation of the existing facility.

He said about 500 people have opted for the VRS, of which about 250 would be relieved by July-end while the second batch of 250 would be moving out by August end. The package offered to the employees is one-and-a-half times the remaining service period, which would roughly work out to Rs 6-7 lakh per person.

He said of the 500 employees, 400 fell in the non-officers category. He said the second instalment of Rs 92 crore would be used for one-time bank loan settlement (Rs 66 crore); inter-corporate loans (Rs 10 crore) and statutory dues such as the provident fund, income-tax (Rs 16 crore). "With these loans written off, it would again start functioning on a clean slate," he said.

Expansion

Mr Bhorade said in the expansion programme of the company, it would be increasing the capacities for production of IV fluids, formulations and agri-products, which are already in its fold. He added that the facility upgradation would take another two to three months. The bulk production plant, which catered to manufacturing of penicillin and streptomycin and which has been closed down, is proposed to be leased out and many private parties have shown interest in the plant, he said.

It may be recalled that the company, which fell into losses, had been referred to the Board for Industrial and Financial Reconstruction (BIFR) in 1997. Three years ago, the Union Government had recommended the total closure of the plant but had to reconsider when the union took on a 45-day agitation. The Union Cabinet had finally approved the revival package on March 9, 2006 and has handed over the demand draft to the company officials on Tuesday.

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