State should have a diminishing role in industrial and trading activities of modern economies especially when the private sector starts taking charge of these key functions. The state should then shift towards the role of a facilitator and a regulator of overall economic development. This is precisely what has happened in India. In the initial phase of country's economic development in the fifties, it was the state sector, which started various industries and services. Then came the private sector investments. Now the state sector has withdrawn from almost all industrial and trading activities. In the pharmaceutical sector, two PSUs namely Indian Drugs and Pharmaceuticals Ltd and Hindustan Antibiotics Ltd played a pioneering role in the development of this vital industrial segment in the initial years. And the subsequent entry of private sector into this segment has been quite spectacular that both these giants turned sick within years. Yet, the government did not shut them down despite demands for winding up and privatization. What has prevented the government from closing them down is the huge requirements of cheaper drugs for the healthcare programmes of the Central and state governments. These government institutions can neither depend on large private drug units as their products are usually quite expensive nor small drug units as the quality of their products is in doubt. With their current production capacities and infrastructure, IDPL and HAL can undertake production of several essential drugs at fair prices. The government's decision to revive all the five sick units of IDPL at an estimated cost of Rs 200 crore is therefore, significant. The decision was taken in this regard in September last at a high-level meeting chaired by the Chemicals and Fertilisers Minister, Ram Vilas Paswan, based on the recommendations of an expert committee set up by the government. The restructuring of these five units is expected to be completed within two-and-a-half years. For timely implementation of the revival process and release of required funds for the same 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 was also appointed. NIPER has been designated to function as the external consultant for the entire revival process. The total asset value of these five units of IDPL located at Hyderabad, Chennai, Gurgaon, Rishikesh and Muzaffarpur is estimated at over Rs 15,000 crore and some of these units have highly sophisticated plant and machinery to produce drugs at a low cost. HAL plants located at Pune also have huge assets with capacity to produce quality drugs at lower prices. Now with the intentions are clear what the government should do is to expedite the whole process of revival of these units. Funds can even be raised by selling off a major part of the assets of these PSUs to establish modern manufacturing facilities. A recent initiative launched by the department of chemicals & petrochemicals, AP government and bodies like BDMA, Pharmexcil and IPA AP branch to form a society to aid the revival of IDPL should speed up the whole process.