IDPL revival referred to GoM

New Delhi, May 17 (UNI) The revival of the Indian Drugs and Pharmaceuticals Ltd (IDPL), declared sick in 1992, was today referred to the group of ministers (GoM) by the Union Cabinet.

This was announced by Information and Broadcasting Minister Priya Ranjan Dasmunsi after the Cabinet meeting.

An independent agency, ICRA, has already studied and vetted the revival package submitted to the Government by the Board of Reconstruction of Public Sector Enterprises (BRPSE).

According to the package, the dues and liabilities, including interest, the public sector firm owed to the Government would be completely waived. This worked out to about Rs 2,600 crore.

The consortium of banks and financial institutions extended a Rs 101 crore loan to the IDPL and the accumulated dues, including interest, had gone up to Rs 800 crore.

However, the chairman and managing director of the State Bank of India, who headed the consortium, agreed for a one-time settlement (OTS) scheme, by levying five per cent interest. Thus, the total sum payable to the consortium would come to about Rs 180 crore.

Besides, the Government was to infuse Rs 361 crore, which would have to be returned with interest by the IDPL over a specified time.

All the five units of the IDPL were to form part of the revival package.

UNI