Parliamentary Standing Committee attached to Chemicals and Fertilisers Ministry has called for `immediate and concrete action' to revive the ailing Indian Drugs and Pharmaceuticals Ltd (IDPL), even as the Pharma Department said that it was still finalising the note for Cabinet on the revival package.

"The Committee have been informed that at the instance of Cabinet Secretariat, a draft note is stated to have been prepared by the Department and is being finalized for consideration by the Cabinet for revival of IDPL, which had been discharging the social responsibility of manufacturing and providing drugs to the general public at reasonable rates. The revival of IDPL being of paramount importance, the Committee desire that the revival plan should be expedited at a much quicker pace," a recent report said.

"Steps should also be taken to upgrade manufacturing facilities in IDPL conforming to WHO-GMP standards. The Committee feel that by doing so IDPL would be able to effectively compete with the major pharmaceutical industries in private sector in respect of quality medicines and ultimately would instill confidence in the people. The Committee would therefore, expect concrete action by the Government in this behalf," the panel said.

The IDPL was declared sick in 1992 under reference to Board for Industrial & Financial Reconstruction (BIFR) and a rehabilitation package for revival was sent to the cabinet which referred it to a Group of Ministers in May 2007. The GoM considered the rehabilitation proposal for revival of IDPL at its meeting held in October 2007 and advised that revival plan of IDPL should be based on public interest goals, which the organization would be expected to serve when revived.

Considering the advice of GoM, IDPL engaged Ernst & Young (E&Y) to prepare pre-feasibility report for its revival. Taking into account the pre-feasibility report, a modified rehabilitation plan for revival of IDPL was prepared for consideration of GoM. However, before the proposal could be considered, general elections were announced. Chairman of GoM, therefore, desired that the matter be taken up after new Government is formed after the Lok Sabha Elections.

With the Constitution of the new Government after the elections, the Department with the approval of Minister (C&F) has recommended that the proposal be placed before the Cabinet for decision. The Cabinet Secretariat has since asked the Department to submit note for the Cabinet for revival of IDPL. The Department of Pharmaceuticals told the Parliamentary panel that the note for Cabinet for revival of IDPL was being finalized by them after the formation of new Government.

"As the stakes for revival of IDPL are high and the revival package is large, Department of Pharmaceuticals is in the process of examining the proposal from all aspects of its implementability to take a view before placing the same before the Cabinet," the DoP clarified on the delay in finalising the note.