The final package for reviving the ailing Indian Drugs & Pharmaceuticals Ltd (IDPL), Gurgaon is yet to be approved by the Central government. The first revival package was planned for PSU nearly 20 years ago.
After maintaining for years that the cabinet note was under preparation, the Department of Pharmaceuticals has revealed that it was still waiting for the draft rehabilitation scheme from the IDBI, the operating agency.
“The Cabinet Note will be finalized after receipt of Draft Rehabilitation Scheme (DRS) prepared by the IDBI – Operating Agency (OA) appointed by BIFR. Final DRS is to be submitted by IDBI to BIFR which is expected this month or next month early,” sources in the Department said.
The IDPL, the largest CPSU, was incorporated in April 1961 for achieving India’s march towards self-sufficiency and self-reliance in the field of drugs and pharmaceuticals, particularly with the primary objective of creating self sufficiency in essential life saving drugs. It was declared sick by the BIFR in August 1992.
A revival package for the company was formulated and approved by BIFR on 10th February, 1994. However, after taking into account the performance of the company which fell short of the targets, the BIFR in November 1996, treated the sanctioned package as failure.
However, DoP filed an appeal and in 2004, an expert committee was formed to study the techno-feasibility by NIPER which submitted the report in 2005, recommending revival of all plants and its subsidiaries in phases.
“A Draft Rehabilitation Scheme was considered by the Board for Reconstruction of Public Sector Enterprises (BRPSE) in 2007 and recommended for approval. The scheme was placed before the Cabinet for approval. The Cabinet considered the proposal at its meeting held on 17.5.2007 and referred it to Group of Ministers (GoM) for consideration at the first instance. GoM was constituted on 1.6.2007. The first meeting of the GoM was held on 11.10.2007. Based on the recommendation of GoM and Draft scheme prepared earlier, a Pre-Feasibility Report was prepared by an Expert Agency, Ernst & Young,” sources explained.
BIFR in January last year, directed that the copy of E&Y report be submitted to BIFR as well as IDBI (Operating Agency) and IDBI to examine the report, prepare Draft Rehabilitation Scheme (DRS) and submit to BIFR. The cabinet note will finally be prepared after the DoP gets the report by the IDBI now, sources added.