After 8 years of sickness, IDPL on the block

After 8 years of sickness, IDPL on the block

NEW DELHI, AUG 28: Ailing public sector Indian Drugs and Pharmaceuticals Ltd (IDPL) is up for sale with the Industrial Development Bank of India (IDBI) inviting takeover bids for the company lying sick for the last eight years.

IDPL Chairman and Managing Director Lt Gen (retd) V K Sareen had put in his papers in May this year citing government's "indifferent attitude" towards reviving the public sector unit. "Though the government purchases drugs and medicines worth Rs 2,000 crore per annum out of the Rs 10,000-crore pharmaceutical market in the country, its buying from PSUs had become negligible," Sareen told PTI.

In its advertisement, IDBI said while evaluating the offers, it would be guided by willingness and ability to bring in maximum funds from own sources to revive IDPL. "Experience in similar industry and minimum possible concessions from banks, State Government and Central Government," would also be a criteria.

The operating agency has asked interested parties to bid before November 20. However, industry sources said the huge workforce of IDPL (7,300 employees) and the liabilities are likely to deter any serious bidder.

Sareen said a decision on IDPL should have been taken three years ago but "dilly-dallying" attitude of successive governments jeopardised the revival process.

He said the company, which has assets worth over Rs 2000 crore, had given three revival proposals in the last three years but nothing came out of it. IDPL, incorporated in 1961 to manufacture life-saving drugs at cheap rates, was first referred to the BIFR in 1992.