New Delhi: The government today brought Karnataka Antibiotics & Pharmaceuticals Ltd (KAPL) and Rajasthan Drugs & Pharmaceuticals Ltd (RDPL) under direct control to help the companies, formed as joint ventures with two states, upgrade manufacturing facilities.
The Cabinet has approved a proposal to transfer the equity share of KAPL -- a JV between Hindustan Antibiotic Ltd (HAL) and Karnataka -- held by HAL to the President of India and an additional investment of Rs7.10 crore
Similarly, transferring the equity shares held by Indian Drugs & Pharmaceuticals Ltd (IDPL) in RDPL -- a JV with Rajasthan -- was also approved along with a proposal to inject Rs2 crore.
In order to help KAPL and RDPL in their upgrade plans, “both companies have been (brought) under the direct control of the central government,” union minister for Science and Technology Kapil Sibal said while briefing the media here.
Both KAPL and RDPL are profit-making companies whereas their holding companies, HAL and IDPL, are sick, and are not able to support the companies in their upgrade, expansion and modernisation plans, Sibal added.
After the transfer of equity shares, the equity of the Government of India and Karnataka in KAPL would in the ratio 59:41, while in RDPL, the ratio of the central and state government stakes will also be 51:49.
Bangalore-based KAPL is planning to set up a Cephalasporin plant and upgrade its facilities at an estimated expenditure of Rs22.45 crore. RDPL requires Rs8.75 crore for modernising and upgrading its manufacturing plant in Jaipur.