The government may expedite a final decision on the much delayed Rs 441-crore financial package to revive the ailing PSU, Indian Drugs and Pharmaceuticals Ltd (IDPL) as the issue has been included in the 100-day programme of the newly formed Congress-led UPA government at the Centre.

Sources said that the new chemicals minister MK Azhagiri will soon take up the matter with the Cabinet secretary.

As the IDPL revival plan has been accorded a priority status by including it in the 100-day programme of the government, it may soon initiate action by announcing a new Group of Ministers (GoM) to take a final call on the issue which has been hanging fire for some time, sources close to the development said and added that the government may issue a notification in this regard soon.

The government has to form a new GoM as some members in the previous GoM like health minister Dr Anbumani Ramadoss, chemicals minister Ramvilas Paswan and labour minister Oscar Fernandes in the previous government have been replaced by new faces. The previous GoM headed by then defence minister AK Antony was on the verge on finalizing a decision on the issue but the resignation of two key members, Dr Ramadoss and Fernandes, on the eve of general elections forced Antony to refer the matter to the next government without taking a final call on the issue.

An early clearance to the revival of the scheme is important as the government has the social obligation to manufacture and market life-saving drugs at reasonable prices to the poorer sections of the society whereas the private companies have no such obligation to the general public. IDPL is also expected to play a key role in ensuring uninterrupted drug supply to the Jan Aushadis, under which the government proposes to set up generic drug stores in each district of the country to make quality medicines available at affordable prices to the poorer sections of society. The government proposes to open 100 Jan Aushadis by the end of this year. Since the big industries not showing any interest in the project due to low margins, the government is depending on the PUS pharma units like IDPL for ensuring continuous drug supply to Jan Aushadis.

IDPL is one of the four public sector pharma units in the country which was declared as sick way back in 1992 by the Board for Industrial & Financial Reconstruction (BIFR). The revival package was formulated and approved by BIFR in February 1994. The Board for Reconstruction of Public Sector Enterprises (BRPSE) recommended the present scheme for approval of the government.

The revival package was placed before the cabinet which considered the proposal at its meeting on May 17, 2007. As there was no consensus on the issue, it was referred to a GoM under AK Antony.