Pharma dept to inject Rs. 430-cr to save HAL | business | Hindustan Times
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Pharma dept to inject Rs. 430-cr to save HAL

business Updated: Nov 04, 2012 22:46 IST
Himani Chandna Gurtoo
Himani Chandna Gurtoo
Hindustan Times
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The department of pharmaceuticals (DoP) will provide a second rehabilitation package to the loss making Hindustan Antibiotics Ltd (HAL), the first drug manufacturing company set up in the public sector with active co-operation of WHO and UNICEF.

"Under the second phase of revival, the department has decided to inject Rs. 430 crore. Now, the same has been circulated for inter-ministerial consultation," said a senior official at DoP. "While designing a package, we have especially considered details of the pending arrears to the workers."

HAL turned sick over the years on account of high manpower cost, technological obsolescence and competition from the private sector. In 2006-07, the government had provided Rs. 508.5 crore for rehabilitation.

"HAL reported a net loss of Rs. 50 crore for 2011-12," a Crisil report noted.