Pune drug unit gets Paswan’s revival dose

When asked to elaborate, Paswan said his ministry would study the revival proposal prepared by HA’s management. The company has asked for a waiver of government taxes and interest thereon amounting to Rs 66 crore, he said. Although Paswan stopped short of writing off the debt the company owed the government, he seemed extremely positive about it.

Paswan also appeared amenable to HA’s request for central assistance of Rs 46 crore to repay bank loans. HA Limited needs to manage an interest burden of Rs 23 crore on old loans every year, an account that should be closed with the proposed government aid, he said.

When asked about HA’s case, which is pending before the Board for Industrial and Financial Reconstruction (BIFR), Paswan virtually signalled a halt to the proceedings. The UPA Government has decided in principle to keep privatisation or disinvestment as the last option, he said, adding that this guideline would apply to HA Limited.

This seems to rule out Mumbai-based Sun Pharmaceuticals’ proposal to take over HA. The company’s managing director M.C. Abraham said he hoped to soon start the unit abandoned by Max GB last December. The company has already slapped a legal notice on Max GB for discontinuing production without proper notice.

HA has faced difficulties over the last few years, ever since China and other countries started dumping cheap penicillin in the Indian market. With pharma companies coming up with powerful generic solutions to several diseases, penicillin is limited to government hospitals.