Lok Sabha Question No. 2295 (UNSTARRED), answered on 2025-12-12
Subject: Modernisation of Pharma PSUs
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Ramasahayam Raghuram Reddy

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION N0. 2295

TO BE ANSWERED ON THE 12 TH  DECEMBER, 2025

## Modernisation of Pharma PSUs

## 2295. Shri Ramasahayam Raghuram Reddy:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) the number of pharma PSUs in the country;
- (b)  whether  the  Government  has  implemented  any  schemes  to  modernise  and  revitalise pharma PSUs to make them more competitive, if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government proposes disinvestment of any pharma PSUs, if so, the details thereof and the reasons for the same;
- (d)  the  total  budget  allocation  and  actual  spending  on  pharma  PSUs  during  the  last  three years; and
- (e) the reasons for the low allocation and underspending?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICAL AND FERTILIZERS

(SMT. ANUPRIYA PATEL)

- (a):  There  are  five  Central  Public  Sector  Enterprises  (CPSEs)  under  the  Department  of Pharmaceuticals,  namely,  Indian  Drugs  and  Pharmaceuticals  Limited  (IDPL),  Rajasthan Drugs and Pharmaceuticals Limited (RDPL), Hindustan Antibiotics Limited (HAL), Bengal Chemicals and Pharmaceuticals Limited (BCPL) and Karnataka Antibiotics and Pharmaceutical Limited (KAPL).
- (b) and (c): IDPL, BCPL and HAL were declared sick and formally referred to the Board for Industrial and Financial Reconstruction in the years 1992, 1993 and 1997 respectively. The revival/rehabilitation  packages  of  IDPL,  HAL  and  BCPL  had  failed  to  achieve  desired results.  These  CPSEs  had  been  incurring  substantial  and  continuous  losses  due  to  issues related  to  management,  cost  competition,  shortage  of  raw  materials,  low  utilisation  of capacity,  huge  operational  losses,  etc.  Against  this  backdrop,  Cabinet/CCEA  approved closure / strategic sale of these CPSEs. Pursuant to the same, Government has initiated steps towards  closure  of  IDPL,  transfer  of  Government  of  India  stake  in  RDPL  to  the  State Government of Rajasthan and strategic sale / disinvestment / asset monetisation in respect of HAL, KAPL and BCPL.

While no scheme has been implemented to modernise and revitalise these CPSEs to make them more competitive, measures taken by them to improve their production capacity and the remedial steps taken by them to settle their statutory liabilities are detailed at Annexure.

(d) and (e): Year-wise details of budgetary allocation and expenditure provided to IDPL, for its closure, over the last three financial years and the present financial year are as under:

(In crore ₹)

|                | Budgetary allocation   | Budgetary allocation   | Budgetary allocation   | Expenditure   | Expenditure   | Expenditure   |
|----------------|------------------------|------------------------|------------------------|---------------|---------------|---------------|
| Financial year | Loan                   | Grant                  | Total                  | Loan          | Grant         | Total         |
| 2022-23        | 4.00                   | 0                      | 4.00                   | 2.11          | 0             | 2.11          |
| 2023-24        | 0                      | 356.44                 | 356.44                 | 0             | 356.44        | 356.44        |
| 2024-25        | 39.00                  | 0                      | 39.00                  | 39.00         | 0             | 39.00         |
| 2025-26        | 0                      | 0                      | 0                      | 0             | 0             | 0             |
| Total          | 43.00                  | 356.44                 | 399.44                 | 41.11         | 356.44        | 397.55        |

No  budgetary  support  has  been  provided  during  the  aforesaid  years  to  the  other  CPSEs. Budgetary allocation has been low on account of the decisions taken regarding their closure / strategic sale. The expenditure against the budgetary allocation has been nearly full (99.52%).

Annexure referred to in the reply to parts(b) and (c) of LOK SABHA UNSTARRED Q. No.  2295  for  answer  on  12.12.2025,  raised  by  Shri  Ramasahayam  Raghuram  Reddy, regarding 'Modernisation of Pharma PSUs'

Measures taken by pharmaceutical CPSEs under the Department of Pharmaceuticals to improve their production capacity and the remedial steps taken by them to settle their statutory liabilities

BCPL,  KAPL  and  HAL  have  undertaken  multiple  measures  to  improve  the  production capacity for essential medicines, including upgrade of manufacturing facilities, enhancement of production lines and adoption of latest technologies, along with initiatives for meeting the requirements relating to good manufacturing practices under Schedule-M to the Drugs Rules, 1945.  They  have  also  strengthened  marketing  and  distribution  networks,  and  improved coordination with Central and State procurement agencies to ensure enhanced utilisation of capacity and sustained contribution to national availability of essential medicines.

Remedial steps taken include settlement of long pending statutory liabilities of HAL:

- (i) HAL had liability of ₹2.28 crore (principal plus interest) towards the Indian Railways for railway siding facilities at HAL, which has been settled through payment of only the principal amount of ₹15 lakh.
- (ii) HAL had liability of more than ₹10 crore (principal plus interest) towards CISF for their  services  offered  to  HAL  till  2015.  This  liability  has  been  settled  through payment of only the principal amount, i.e. , ₹ 2.81 crore.
- (iii) There was an amnesty scheme for settlement of pending sales tax / VAT dues. HAL, utilising this scheme, has settled pending tax arrears of sales tax / VAT of ₹1.78 crore.
- (iv) There was another amnesty scheme for settlement of pending Bombay Sales Tax dues (BST) and CST. The total liability of HAL for BST/CST was ₹87.82 crore, which has been settled at ₹7.16 crore.

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