▪ Two years ago, the union cabinet decided to sell land of four under-performing state-owned firms in the pharma business to meet their outstanding liabilities.
▪ These were Hindustan Antibiotics Limited, Indian Drugs & Pharmaceuticals Limited, Rajasthan Drugs & Pharmaceuticals Limited and Bengal Chemicals & Pharmaceuticals Limited. ▪ Selling land is a popular and viable route for funding revival packages of state-owned companies.
▪ In 2016, the union cabinet
approved a plan to monetise almost 1600 acres of land belonging to the four companies and spread over different parts of the country. The four companies have a total land of 2352 acres.
▪ When the panel asked if there were other ways to make these companies profitable, the government maintained that in view of the cabinet decision to offload stakes, no comment can be offered at this stage.
▪ The total liabilities of the three ailing companies amount to ₹20,358 crore. Out of this, the liability for IDPL stands at ₹ 10,866 crores, BCPL, ₹ 8681 crore and HAL, ₹811 crore.