The Karnataka State Industrial Investment and Development Corporation (KSIIDC), the 50 per cent equity holder in the Karnataka Antibiotics and Pharmaceuticals Limited (KAPL), may raise objection to the Union government's decision to hand over the Hindustan Antibiotics' holding in the company to the private hands.
KAPL, a 50:50 joint venture between KSIIDC and Hindustan Antibiotics, is a profit making enterprise and currently the only public sector pharma company declaring dividend continuously for the last few years.
According to a senior official in the state government, the KSIIDC is now seriously considering a proposal to purchase the entire shares of HAL in the company to avoid private entry into KAPL. Sources from the State government added that since the Board for Industrial Finance and Reconstruction (BIFR) is yet to give the final nod to the HAL hand over deal, as there is another consensus meeting is scheduled for next week, the KSIIDC is hopeful that a decision regarding the acquisition can be formulated and presented.
However, the decision to object the government decision to hand over the 50 per cent KAPL shares to the private company along with the HAL is going to give serious set back to the entire deal as the private bidder has included the KAPL equity as well in their HAL takeover proposal.