After toying with several ideas and unsuccessfully pushing a revival package since 2007, the Department of Pharmaceuticals (DoP) is now considering a proposal for upgradation of manufacturing facilities of public sector pharma giant Indian Drugs and Pharmaceuticals Ltd (IDPL) conforming to WHO-GMP standards.


Even as the files relating to the revival package worth Rs.441 crore are stuck between the ministry and the cabinet for approval, the DoP has now sent the proposal for making the company Schedule M compliant already to the Planning Commission for an in-principle approval, sources said, without further divulging details of the estimates.


Presently, under different class of therapeutic medicines, around 80 drugs including tablets, capsules, injection, vitamins, etc. are being manufactured in various plants of IDPL. Additionally, IDPL is engaged in setting up of a new cephalosporin plant at an estimated cost of Rs.13 crore at its premises in Gurgaon. This plant will help the company in further growth of production and sales.


“IDPL had appointed consulting firm Ernst & Young for preparation of revival plan. The consultant submitted an updated draft report in June this year. The revival plan has been prepared keeping in mind competition from the private sector and the social objective as laid down by the GoM. The same is being examined in the Ministry. When implemented, IDPL should start making operating profit from 7th Year of implementation of the Revival Plan as per the report,” sources said.


Meanwhile, sources claimed that the package was not dropped yet and the draft Cabinet note for revival of the IDPL is still under submission to the ministry. The package has been stuck since 2007.


It was alleged that the present Chemicals minister M K Azhagiri did not take much interest on the topic and the file was stuck in the ministry for long now. Though it was included in the 100-day programme of the government, nothing happened even now.


After the Government decided to revive the five units of IDPL in a phased manner, the rehabilitation plan was approved by the Board for Reconstruction of Public Sector Enterprises (BRPSE) in its meeting in March 2007. The scheme was placed before the Cabinet for approval. The Cabinet considered the proposal at its meeting held in May 17, 2007 and referred it to GoM for consideration at the first instance. GoM was, accordingly constituted on June 1, 2007. The first meeting of the GoM was held on 11.10.2007.


Based on the recommendations of the GoM and the draft rehabilitation scheme prepared earlier, a pre-feasibility report was prepared by an expert agency, Ernest and Young. Due to notification of elections, the GoM could not consider further steps on the pre-feasibility Report. After the formation of new Government, it has been decided to place the matter before the Cabinet. The Cabinet Note is being finalised accordingly.