Uncertainty over proposal for takeover of KSDP
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ALAPPUZHA: : The failure of the State Government to make sincere moves to revive the public sector drug manufacturing company, Kerala State Drugs and Pharmaceuticals Ltd, Kalavoor here, is hindering the takeover of the company by another public sector unit, Hindustan Latex Ltd. Though the State Government, in an order dated October 5, 2002, had accorded sanction to the takeover proposal, its failure to give an assurance to Hindustan Latex on minimum purchase of the drugs produced by the company is scuttling the takeover bid. Trade unions point out that the Government’s stand was against its declared policy that public sector drug manufacturing companies would be protected to control the price hike of drugs in the market. The trade union leaders pointed out that the KSDP had completely stopped production for the last two years. Trade unions’ grievance Around 150 workers who remain with the company had not received their salaries for the last 16 months. The company had around 300 workers earlier. At present, some of them had gone on deputation and some others had taken voluntary retirement. Though the State Government had appointed various committees to submit recommendations for the revival of the company, none of them was implemented. The R. C. Chowdhury Committee appointed by the State Government in 2002 had recommended that the company which was ailing then be taken over by the Health Department. But the department rejected the proposal citing shortage of funds. It was in this context that Hindustan Latex submitted a proposal for the takeover of the company. More : hindu.com |