The abrupt move by the BIFR to wind up Hindustan Antibiotics Ltd (HAL) may not take place that easily, it is learnt. BIFR had issued a show cause notice to HAL management last week asking why the company should not be wound up in view of BIFR's repeated attempts to revive the company failed.
Although the BIFR has given a deadline of November 29 to reply to the show cause notice, HAL management and the employees union feel that the company could be revived with a proposal it is already having. The management is understood to be brushing up its own proposal for revival of the company and may submit to the Ministry of Chemicals and Fertilizers, informed sources said.
The BIFR, which had proposed a change of management in the company by inducting a private partner as an option to revive the company, had twice invited private bids through the Industrial Development Bank of India (IDBI). IDBI has been the operating agency appointed by the Board to prepare a revival scheme for the company since it was declared sick in 1995.
According to IDBI sources, the winding up move from the Board came as a surprise to them as the Bank was awaiting a response from BIFR in regard to the second private bidding. The Bank sources said that since there was only one proposal received in the second term, which was from the same bidder whose proposal was rejected by AAIFR earlier, it has sought an advice from the Board on the consideration of the proposal. However, the winding up notice came from the Board before the response to this.
The company's proposal is learnt to be a package, which would present the company's present performance and also its proposal to pay off the existing debts by selling of its surplus land assets. The land sell off deal had already been worked out by the company for this purpose. But due to the privatization move by the BIFR earlier, the company could not proceed on the deal anymore.