Question : INDIAN DRUGS AND PHARMACEUTICALS LIMITED



(a) whether it is a fact that a proposal has been finalized at the Ministry level to reorganise the IDPL;

(b) if so, the details thereof; and

(c) if not, the reasons thereof?

Answer given by the minister

THE MINISTER OF STATE FOR CHEMICALS & FERTILIZERS (DR. CHHATTRA PAL SINGH)

(a), (b) & (c) : A reference was made to BIFR under the provisions of Sick Industrial (Special) Provision Act 1985 and IDPL was declared as sick in August, 1992. Thereafter, BIFR had attempted revival packages for the company. The Government on its part had communicated to BIFR in November, 2001 that the Government intended to provide the following concessions/facilities for cleaning up of the Balance Sheet of IDPL to facilitate it pricatization:-

(a)	Conversion of Government loan into equity;	(b)	Waiver of interest/penal interest and guarantee fee by the Government of India;	(c)	Payment of outstanding statutory dues and funding of VRS.


However, no revival scheme for IDPL could emerge. Now the BIFR issued a Show Cause notice for winding up of IDPL and the matter is listed for hearing before the BIFR on 4th December, 2003. Government has however introduced a VRS Scheme and 5890 employees have been separated so far leaving 702 employees on the rolls of the company.