HYDERABAD: Indian Drugs and Pharmaceuticals Ltd, which was declared sick in 1992 by the Board of Industrial Finance and Reconstruction, is on the road to recovery. A Cabinet note on the revival package has already been circulated and its nod awaited.

In an informal chat with reporters here on Saturday, Chairman and Managing Director of IDPL Jayashree Gupta said that the an independent agency, ICRA, studied and vetted the revival package submitted to the Government by the Board of Reconstruction of Public Sector Enterprises (BRPSE).

As per the package, the dues and liabilities, including interest, the company owed to the Government of India would be completely waived. This worked out to about Rs. 2,600 crore.

The consortium of banks and financial institutions extended a Rs. 101 crore loan to the IDPL and the accumulated dues, including interest, had gone up to Rs. 800 crore, said Ms. Gupta. However, the chairman and managing director of the State Bank of India, who headed the consortium, agreed for a one-time settlement (OTS) scheme, by levying five per cent of simple interest. Thus, the total sum payable to the consortium would come to about Rs. 180 crore.

This apart, the Government would infuse Rs. 361 crore, which would have to be returned with interest by the IDPL over a specified time. All the five units of the IDPL would form part of the revival package, said Ms. Gupta.

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