The Parliamentary Panel attached to Chemicals Ministry has expressed concern over the sustained poor performance of public sector pharma undertakings and called for improvement in marketing technology to help them stand up to the competition from the private sector.
The Panel, headed by Gopinath Munde, in a recent report said `one of the major reasons for losses suffered by PSUs is inefficiency in operation and poor marketing management and stiff competition from well entrenched private concerns.’
The DoP has five pharmaceutical PSUs under its administrative control -- Karnataka Antibiotics Pharmaceuticals Limited (KAPL), Rajasthan Drugs and Pharmaceuticals Limited (RDPL), Bengal Chemicals and Pharmaceuticals Limited (BCPL), Hindustan Antibiotics Limited (HAL) and Indian Drugs Pharmaceuticals Limited (IDPL). Out of these five companies, only KAPL and RDPL are making profit and the rest have been referred to BIFR.
“The Committee finds that apart from these PSUs, there are two closed PSUs, viz. Bengal Immunity Limited (BIL), Kolkata and Smith Stainstreet Pharmaceuticals Limited (SSPL), Kolkata and two joint ventures of IDPL. It is disheartening to note that all the PSUs barring two are either closed or running in losses,’’ the panel said.
``The Committee cannot but express their strong displeasure over the performance of PSUs. The Committee are of the considered opinion that PSUs should improve their marketing strategy and overcome competition from private concerns and venture into the open market with full vigour. All pending proposals for the revival of pharma PSUs should be expeditiously considered and the Government should extend every possible help to revive them,’’ the report said.
Meanwhile, the Centre continued to infuse funds into the loss-making units in a bid to keep them afloat. During the current financial year itself, it has released Rs.22.50 crore as loans to these units. During 2010-11 also, the government gave Rs.40 crore to these units.