The approval of long pending revival package for the leading PSU pharma unit, Indian Drugs and Pharmaceuticals Ltd, looks bleak and the government may just infuse some more funds to keep it going instead of totally restructuring it.

Though the Group of Ministers (GoM) headed by A K Antony referred the Rs 441-crore package to bail out the drugs major to the government, sources said it looked impossible to sell of the vast land under the IDPL units, which was one of the proposals to fund the revival. The sources said it would not be practical dispose off more than 2000 acres of land under the custody of the units at attractive prices.

The new government is hence likely to pump in more money for its sustenance in the coming budget, if the general feeling in the pharmaceutical department is any indication. However, sources said once the Jan Aushadi generic outlets get expanded and more demands generated for its drugs, the IDPL may get a lifeline by increasing the existing production capacities.

After the resignation of GoM members Ambumani Ramadoss and Oscar Fernandes, the panel had referred back the package to the government without making any specific suggestions after sitting on the proposal for years. The panel felt that it would be appropriate for the next government to take a final call on the package.

IDPL was declared sick by the Board for Industrial and Financial Reconstruction (BIFR) way back in 1992 and the revival package was formulated by BIFR in 1994. The Board for Reconstruction of Public Sector Enterprises (BRPSE) wetted and approved the scheme, following which the cabinet set up the GoM.

It is learnt that the IDPL on its part had already started revival-related initiatives, hoping for the clearance of the package by the cabinet. One of the key proposals was to write of losses of Rs 5000 crore which also will now be decided by the new government. The package also included developing assets at its manufacturing units in Gurgaon, Rishikesh, Chennai, Hyderabad and Muzaffarpur. The development plans included building infrastructure for pharma or bio-tech research, drug-delivery, clinical research or health-related centres.