With the aim of bringing back Hindustan Antibiotics Ltd (HAL) on the tracks again, a task committee comprising employees and officers of HAL at Pimpri, Pune has resolved to submit a detailed plan.
It may be recalled that HAL, a public sector company was adjudged as a sick industry by BIFR (Board of Industrial and Financial Reconstruction), which also issued a public notice inviting suggestions and objections to the proposed winding up of operations of the company. The suggestions and objections will be heard on November 27 at the BIFR office in New Delhi.
The committee has emphasized that HAL has been earning profit in the last three years which has been appreciated by the BIFR itself during its earlier hearing in December 2002. The committee maintained that since 1997 when HAL was declared sick, HAL has taken rigorous measures including rationalization of manpower, maintaining minimum inventory, procuring raw material directly from the manufacturer, cutting expenses on cost of production and reducing marketing and administrative expenses. This had resulted in earning of cash profit in spite of control on drug prices and in absence of any financial assistance from the government. The committee felt that the government has done injustice to HAL compared to other public units in releasing funds.
The committee, which is in the process of preparing the detailed plan to suggest the continuance of HAL in public interest, said that the company’s loans could be converted into equity, while the company’s assets should be used to financially restructure it. The committee will also be urging the government to give loan waivers, concessions and have one-time settlements for clearing loans. Once the liabilities are cleared, it would be much better to continue operations at the company where all units are already running, a committee spokesperson said.
The panel also stressed that HAL has social obligations. It was started with the motto `Better drugs for more people at lesser price’. The panel appealed to MPs and prominent people informing them about HAL’s contribution towards national interest. If HAL was closed, the government would not be able to get life-saving drugs required on a large scale, the committee said.