IDPL Today:- The company has presently three manufacturing plants, one each at Rishikesh (Uttaranchal), Hyderabad (Andhra Pradesh) and Gurgaon (Haryana). IDPL has two wholly owned subsidiaries, namely, IDPL (Tamil Nadu) Ltd., Chennai (Tamil Nadu) and Bihar Drugs & Organic Chemicals Ltd. at Muzaffarpur (Bihar). In addition, IDPL has two joint sector undertakings, promoted in collaboration with the respective State Governments. These are Rajasthan Drugs and Pharmaceuticals Ltd. (RDPL), Jaipur, and Orissa Drugs & Chemicals Ltd. (ODCL) Bhubaneshwar.
IDPL was formally declared sick by the Board for Industrial & Financial Reconstruction (BIFR) on the 12th August, 1992. A revival package for the company was formulated and approved by BIFR on the 10th February, 1994. However, after taking into account the performance of the company which fell short of the targets, the BIFR on 23.1.1996 treated the sanctioned package as failure. BIFR heard the case from time to time.
In November, 2001, the Government communicated to the BIFR that the Government intends to provide the following concessions/facilities for cleaning up of the balance sheet of the company to facilitate its privatization :-
(a)Conversion of Government loan
Accordingly, BIFR directed the Operating Agency to invite proposals for privatization of all units of IDPL and later all the units including two wholly owned subsidiaries. None of the proposals received was found support worthy.
BIFR vide order dated 12.9.2003 issued Show Cause Notice to the company/existing promoters as to why the company should not be wound up. BIFR in its meeting held on 4.12.2003 confirmed its prima-facie opinion that it would be just , equitable and in public interest if the sick company IDPL was wound up in terms of Section 20(1) of the Sick Industrial Companies(Special Provisions) Act, 1985.
Department of Chemicals & Petrochemicals filed an appeal against the opinion of BIFR in Appellate Authority for Industrial & Financial Reconstruction(AAIFR) on 10.2.2004.
An Expert Committee was appointed in September, 2004, to study the techno-financial feasibility of rehabilitating IDPL. A technical audit of various plants of IDPL was also assigned to National Institute of Pharmaceutical Education and Research (NIPER). NIPER in its report submitted to the Department on 31.8.2005, recommended revival of all plants of IDPL and its subsidiaries in phases for production of existing and new products. IDBI supported the recommendations for revival of IDPL subject to certain conditions.
In a meeting held under the chairmanship of Minister (C&F&S) it was decided to revive all the five units of IDPL in a phased manner.
Honble AAIFR at its hearing on 13.9.2005 set aside the impugned order of BIFR dated 4.12.2003 and remanded the matter back to BIFR for taking further action for rehabilitation of IDPL.
Draft Rehabilitation Scheme for revival of Indian Drugs & Pharmaceuticals Limited (IDPL) was considered by Board for Reconstruction of Public Sector Enterprises (BRPSE) at its meeting held on 9.3.2007 and recommended for approval. Cabinet considered the proposal at its meeting held on 17.5.2007 and referred it to GoM for consideration at the first instance. GoM has since been constituted.
Note: Government offered VRS to the employees of IDPL. The Government had also released funds to the extent of Rs 470.63 crores. Till 31.1.2004 towards implementation of VRS. As a result of implementation of VRS the total strength of 6592 employees (inclusive of both wholly owned subsidiaries as on 31/12.2002) has been reduced to 322 employees as on 1.7.2007.