The decision to close down Bihar State Pharmaceuticals & Chemical Development Corporation was taken at its board meeting on May 18. Commissioned in 1978 with an asset base exceeding Rs 100 crore, the unit was expected to manufacture chemical products like drugs at a low cost besides providing technical support toentrepreneurs willing to set up similar units in the state.

Despite heavy investments, 10 of the corporation's 13 wings never produced a single item. Bihar Insecticide Ltd at Purnea, Rubber & Plastic Project at Bihiya in Bhojpur and TDP Soap Project at Hajipur were closed down six months after being commissioned. "Nevertheless, the induction of employees continued unabated, leading to stoppage of payment of salaries from 1993," a source said.Managing director TN Sharma, who joined the corporation in February 1998, said 32 of its 236 employees are engineers and 52 are on deputation to various departments of the state government. "I can still bring the corporation back on the rails, but I need Rs 1 crore capital money and the permission to market my drugs to the state government hospitals," Sharma said.