Pimpri-based Hindustan Antibiotics set for revival

However, the financial model to make the sick unit fully operational and future expansion plans yet to be worked out. Union Finance Minister Arun Jaitely is heading a three-member committee working to revive sick public sector drug companies, including HA.

“Land monetisation to mobilise revenue is also on the agenda. However, details are still being worked out,” Fadnavis said.

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Kumar said a group of ministers were working on the financial model.

The HA, whose foundation was laid by the first Prime Minister Jawaharlal Nehru, has of late run into financial trouble, failing to pay salary and arrears to its 1,000 employees.

Earlier, the Board of Board for Industrial and Financial Reconstruction (BIFR) had recommended that the Centre provide a relief and restructuring package of Rs 674 crore.

Sunil Pataskar, general secretary of the Hindustan Antibiotics Majdoor Sangh, said,”If this (revival) is true, it is big relief for 1,000 employees of the company who have not been paid their salaries for months… The employees will today sleep peacefully after several months of nightmare,” he said.

Pataskar, however, said that when he had gone to New Delhi last week, he had not received positive signals. “However, if CM and the Union minister have declared the revival, I have their word,” he said.

Pataskar said the employees had been constantly conveying to the government that they were capable of turning around the PSU, if given a chance. “If they give us our 18 months’ salary and thereafter salaries on time besides working capital, we are quite capable of running the company profitably. Now, we will all put in lot of hard work to get the PSU back on track,” he said.

Pataskar said the government’s priority should be to first pay up the salaries of the employees who have been reduced to begging. “The families of the employees are going through lot of hardship. They struggle to keep sustain their families. Their children’s education has been hit badly,” he said.