The government is charting out a plan to redevelop idle land assets belonging to closed pharmaceutical public sector undertakings (PSUs) such as Indian Drugs and Pharmaceuticals Limited (IDPL) and Bengal Immunity Limited, a person aware of the matter told Moneycontrol. The move is part of a broader strategy to optimise underutilised state assets and bolster the healthcare and education sectors.
The thinking is that utilising the land for educational and research purposes would be the most effective approach. "The government’s plan reflects a strategic push to repurpose idle state assets for productive use. It would be better if we go for the education and research purpose, because the medical science or healthcare value chain requires that more than anything," the official told Moneycontrol.
A favourable order from the National Company Law Tribunal on January 7 has cleared the path for the redevelopment process by removing legal hurdles that had been obstructing the redevelopment of these assets. "It is a very major gain for the department," the official said. "If there is something good which contributes to the healthcare value chain, it should be pursued."
The government’s decision to utilise the land for healthcare and education infrastructure aligns with its broader policy goal of optimising state assets while addressing critical gaps in the healthcare sector, he said.
IDPL Hyderabad land
A portion of the IDPL plant in Hyderabad, which is currently closed, has already been allotted to the National Institute of Pharmaceutical Education and Research (NIPER). A new campus has been established on this land.
"We are now considering further redevelopment of the remaining land by setting up medical devices manufacturing units and institutions focused on healthcare education and testing. The story of IDPL is about how we recovered the lands and are now working to ensure their better use. We are going to give the remaining portion of the land to NIPER so they can develop their campus or other facilities there. It is only logical to put this land to better use."
IDPL, established in 1961, faced mounting financial losses and operational challenges. In October 1996, production activities at IDPL's major units in Rishikesh and Hyderabad were halted. This cessation was primarily due to financial constraints, including insufficient budgetary support from the government. Recognising the persistent challenges, the Center in December 2016 decided to shutter all IDPL plants.
Plans have been drawn up only for the land around the Hyderabad facility as of now.
Bengal Immunity land
Bengal Immunity Limited, which was closed in 1993, has around 55 acres of land—approximately 20 acres in West Bengal and 35 acres in Dehradun. The scattered nature of the land could pose a challenge for redevelopment, the official noted.
"The West Bengal government has also raised concerns that these lands are becoming a den for anti-social activities," the official said. "We are looking at options of redeveloping that land by giving it to NIPER or setting up medical devices manufacturing units and institutions, whether for education or testing, to strengthen the healthcare value chain."
Out of five pharma PSUs, only three are currently functional, including Hindustan Antibiotics Limited (Pune), Karnataka Antibiotics and Pharmaceuticals Limited and Rajasthan Drugs and Pharmaceuticals Limited.
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