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India's First Pharma Company To Be Sold, Cabinet Clears The Proposal

  • Post By: YYogesh Joshi
  • 29 Dec 2016

The Union Cabinet has cleared the sale of India's first pharma company, Bengal Chemicals and Pharmaceuticals Ltd (BCPL), as well as Hindustan Antibiotics Ltd (HAL) after selling off their surplus land. The Cabinet headed by PM Narendra Modi also approved the closure of Rajasthan Drugs and Pharmaceuticals Ltd (RDPL) and Indian Drugs and Pharmaceuticals Ltd (IDPL).

Niti Aayog identified units for sale
Niti Aayog has identified BCPL and HAL among the public sector units for sale of government's majority stake to private companies so that greater efficiency and professionalism in their functioning could be ensured.

Cabinet also approves sale of surplus land
According to a statement, the Union Cabinet has approved the sale of surplus land of Hindustan Antibiotics Limited (HAL), Indian Drugs & Pharmaceuticals Limited (IDPL), Rajasthan Drugs & Pharmaceuticals Limited (RDPL) and Bengal Chemicals & Pharmaceuticals Limited (BCPL), as would be required, to meet their outstanding liabilities. In this way, the national assets would be utilized in the best national interest.

Sale through open bidding
The statement said that the sale would be through open competitive bidding to government agencies and the outstanding liabilities will be met from the sale proceeds. Voluntary Retirement Scheme (VRS) / Voluntary Separation Scheme (VSS) will also be implemented in these Public Sector Undertakings. The remaining part of the land will be managed in accordance with the guidelines of the Department of Investment & Public Assets Management (DIPAM) and Department of Public Enterprises (DPE). After meeting the liabilities, steps will be taken to close IDPL and RDPL. The option of strategic sale will be explored for HAL and BCPL. The Department of Pharmaceuticals, the administrative department for these undertakings, will take time bound follow-up action.