Govt to spend Rs 342 crore on IDPL, HAL revival

In its bid to revive sick public sector pharmaceutical units, the government plans to spend about Rs 342 crore to bring back on track Indian Drugs and Pharmaceuticals Ltd (IDPL) and Hindustan Antibiotics Ltd (HAL).

In a written reply in Lok Sabha, the minister of state for chemicals and fertilisers B K Handique said the government has accepted the expert committee report on revival of IDPL, which has suggested a cash infusion of Rs 204 crore.

He said IDPL had been asked to submit draft rehabilitation scheme for consideration of the government.

The expert committee had suggested that Rs 204 crore may be provided as one-time interest-free loan to IDPL, which the company would repay within a period of seven years by sale of ecxess vacant land available at its units in Tamil Nadu, Hyderabad and Gurgaon.

The committee also suggested that writing off a total concession of Rs 2,780 crore, which includes Rs 1,970 crore of loan and interest from the government and another Rs 810 crore from banks and other PSUs.

Replying to another question, Handique said the government has allocated a Rs 137.59 crore package for the rehabilitation of HAL.

As a part of the package, HAL will be provided Rs 56.96 crore interest-free loan pending sale of land by it. Also, the government will infuse a share capital of Rs 23.31 crore while also providing grant/interest-free loan of Rs 23.32 crore and a Rs 34 crore grant for VRS (including payment of terminal benefits of Rs 8.90 crore).

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