Government plans to privatise IDPL

Government plans to privatise IDPL

By SiliconIndia   |   Friday, 29 November 2002, 08:00 Hrs
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NEW DELHI: The Government said Friday that it would privatize the loss-making Indian Drugs and Pharmaceuticals Ltd (IDPL) through grant of a number of concessions and facilities to the company pending revival with the Board for Industrial and Financial Reconstruction (BIFR).

"A communication has been set to the BIFR intimating the concessions/facilities that the government intends to provide to facilitate its privatisation through the induction of strategic partners," Tapan Sikdar. Minister of State for Chemicals and Fertilisers, told Rajya Sabha.

The government is also ready to convert its loan into equity and waive interest and penal interest and the guarantee fee.

It has also decided to close down the Hindustan Fertilizer Corporation Ltd, Fertilizers Corporation of India Ltd, Projects and Development India Ltd and Pyrites, Phosphates and Chemicals Ltd. These units were declared sick by the BIFR.

The government has granted financial relief to the Fertilisers and Chemicals Travancore Ltd (FACT), which is on the way to disinvestment. The government has already invited the bids for disinvestment of the company with facilities in Kerala.

The Cochin unit of FACT along with the Trombay unit of the Rashtriya Chemicals and Fertilizers Ltd had remained closed during April-October 2002 because of the shortage of natural gas, the minister said.

Out of eight public sector companies under the administrative control of the Department of Fertilizers, five firms, including four sick companies reported losses for 2001-02. The total loss reported by these units for 2001-02 was Rs 2142.48 crore.

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