The upgradation of the units of Bengal Chemicals and Pharmaceuticals (BCPL), an ailing public sector pharmaceutical company, in accordance with the Schedule M as part of the revival package has already started and the modernization work will be completed during next year and production will be improved by then.
The Centre has already released Rs 10 crore this year as the works were progressing in three of the four units of the BCPL. The modernization of plant and machinery at Maniktala in Kolkata, Panihati in Maharashtra and Kanpur in Uttar Pradesh began last year and were progressing well. The revival package has started showing results as the production of the company improved last financial year, sources said.
The impact of the modernization will be visible from 2011. Production has picked up from Rs 70.89 crore in 2006-07 to Rs 89.50 crore during the last financial year. The sales turnover also went up from Rs 45.68 crore to Rs 85.20 crore during the same period, sources said.
Out of cash infusion of Rs 207.19 crore as per the package Rs 117.19 crore has since been released to BCPL and an interest free loan of Rs 90 crore would be provided during current 11th Five Year Plan. Of this, Rs 20 crore has been released in 2007-08 and Rs 20 crore has been released in 2008-09. Parliament had approved writing off of government loans & interest of Rs 233.41 crore after the package was approved.
The PSU, which is into manufacturing of drugs and cosmetics apart from home products, was formally declared sick by the Board for Industrial and Financial Reconstruction (BIFR) in 1993. The revival package was originally approved in 1995, but then modified in 2004 to include upgrading the units as per the Schedule M requirements.