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Govt eyes joint venture route to revive sick pharma PSUs
With the Cabinet expected to approve a plan to cut majority stake in around 20 state-run firms, the government is exploring joint venture opportunities to revive sick pharma public sector units (PSUs).
With the Cabinet expected to approve a plan to cut majority stake in around 20 state-run firms, the government is exploring joint venture opportunities to revive sick pharma public sector units (PSUs).
The Department of Pharmaceuticals (DoP), which comes under the ministry of chemicals and fertilisers, is planning to replicate the model it used in the revival of sick fertiliser PSUs. For instance, state-owned power producer NTPC Ltd and mining giant Coal India Ltd (CIL) formed a joint venture in May to set up two urea factories on the premises of he ailing Fertilizer Corp of India Ltd (FCIL) to help in its revival.
“No pharma PSU will be closed, we have decided this. We are looking for joint ventures where ailing PSUs will be linked with stronger ones for revival, like we did in fertilisers and chemicals sector,” Mansukh Madaviya, minister of state for chemicals and fertilisers, told HT.
The government is looking to raise ₹20,500 crore from strategic sales of public sector units (PSUs), and the NITI Aayog has identified 22 such undertakings. While Niti Aayog has suggested closure of four pharma PSUs — Hindustan Goa Antibiotics, Orrisa Drugs and Chemicals, Rajasthan Drugs and Pharmaceuticals and Hindustan Antibiotics Ltd, according to the ministry, only two need support.
“Two pharma PSUs, including Hindustan Antibiotics Ltd and Bengal Chemicals & Pharmaceuticals Ltd need support and we are working on their revival plan. Otherwise, the other three public sector units have started showing positive outcomes,” Mandaviya said.
Niti Aayog is also in the process of examining another set of 30-35 PSUs, which can be considered for strategic disinvestment, but nothing has been finalised yet.
“These things will be part of the process and we will see. There is nothing more to add at this moment,” said an official from the Department of Disinvestment.
