Disinvestment prep: Cabinet extends Rs 330 cr to these 3 pharma PSUs for clearing salaries

New Delhi: The Union Cabinet has given a nod to loans of Rs 330.35 crore to three state-owned pharma public sector companies on Wednesday to help them clear employees' liabilities and has also announced the setting up of a ministerial panel to decide on the closure or strategic sale of four PSUs. The budgetary support will be extended to Indian Drugs & Pharmaceuticals Ltd (IDPL), Rajasthan Drugs and Pharmaceuticals Ltd (RDPL) and Hindustan Antibiotics Ltd (HAL).

"Budgetary support of Rs 330.35 cr would help in disbursing the unpaid salaries and providing support for VRS of employees of IDPL, RDPL and HAL. The decision would mitigate sufferings of more than 1000 employees of these PSUs," an official release said.

The budgetary support will cover unpaid salary of Rs 158.35 crore and VRS amounting to Rs 172 crore.

Ministerial panel will expedite disinvestment process

It added, "Setting up of a Committee of Ministers would expedite the process of implementation of the earlier Cabinet decision dated 28.12.2016 for closure of IDPL and RDPL and strategic sale of HAL and BCPL."

The Cabinet had approved the sale of surplus land assets of HAL, IDPL, RDPL and BCPL in 2016 through open competitive bidding to government agencies and had decided that the proceeds of the sale will be used to clear dues.

Revised guidelines for sale of land assets

Meanwhile, the Department of Public Enterprises (DPE) has issued revised guidelines on June 14, 2018 relating to the disposal of land assets of PSUs, the statement added.

"As funds could not be generated through sale of surplus land, the employees in few of the PSUs (HAL and RDPL) could not be paid salaries and VRS scheme floated. As such, it was decided to dispose of the land as per revised DPE's guidelines and seek up-front budgetary support for meeting employees' liabilities," the statement said.