IFCI suggests corporate structure for opium factories

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New Delhi, Sep 5: Financial institution IFCI has suggested a corporate like structure for state-owned opium factories to ease excessive government control on manufacture of opium products and ensure easy availability of such inputs for pharmaceuticals companies.

“IFCI has recently submitted a draft report to the ministry of finance suggesting corporatisation of the Government Opium and Alkaloid Factories (GOAFs) to make the department more efficient,” a Ministry official said on Friday.

Corporatisation of the GOAF will increase the efficiency of the organisation, which currently controls production, collection and sale of opium, the official said.

IFCI, which is the oldest financial institution, has prepared the report in consultation with the central bureau of narcotics, chief controller of factories and other officers from the finance ministry. Opium, which is a very sensitive product, is processed to make alkaloids such as codeine phosphate, codeine sulphate, narcotine and morphine sulphate for manufacturing drugs.

These products are sold in the domestic as well as international markets with India being one of the leading exporters of the product.

Pharma companies often complain that they have to wait for a long period to get the supply of these products from the government.

IFCI in its draft report has suggested that GOAF should be recreated like any other public sector company with its own power and finances.

It has also suggested a body with a CMD at the top followed by three Directors for taking care of finance, operations and human resources, respectively.

The Government can also nominate one director if it wants, the draft has suggested.