Significantly, employees of two of the sick PSUs, Indian Drugs & Pharmaceuticals (IDPL) and Bengal Immunity Ltd (BIL), are being paid from the non-plan assistance released by the government from time to time. IDPL, which was declared sick in 1992, has been shut except for some marginal production activity in certain units.

The revival of IDPL, once considered the catalytic engine of growth in the domestic industry, will entail a total cost of Rs 2,034.12 crore (including direct cash financial assistance of Rs 646.96 crores) as per the rehabilitation proposal submitted by the company.

Bengal Immunity, on the other hand, netted a loss of Rs 7.58 crore and had entrusted the West Bengal Productivity Councilwith the task of undertaking a study on the manpower-cum-productivity norms in the company. The revised projections, the report adds, are being examined in consultation with the operating agency. The company has two manufacturing units, one at Calcutta and another at Dehra Dun, Uttar Pradesh, and essentially manufactures vaccines and toxoids.

The other ailing Calcutta-based drug firm, Smith Stanistreet Pharmaceuticals (SSPL), would apparently ``need extraordinary levels of support and sacrifices from the government and others for revival,'' as per the operating agency. However, Bengal Chemicals & Pharmaceuticals was also advised to prepare a revival package for SSPL.

Meanwhile, the country's oldest drug PSU, Hindustan Antibiotics, pruned losses from Rs 23.50 crore in 1996-97 to Rs 9.62 crore for the period ranging April to November 1998, though the government has yet to take a view on the ``funding and sacrifices'' required to revive the company, as per the annual report. The PSU giant has currentlyleased out five of its reactors in Pune to RPG group company, Searle, essentially for the manufacture of Vitamin B2 and B12. Indications are that HAL may examine the option of further extending this relationship to marketing its biotech products. The only other PSU, Bengal Chemicals and Pharmaceuticals, appears to be relatively better off than its peers, and has registered relatively lower net losses. The company sold surplus land of eight acres to the coast guard organisation of the ministry of defence and raised Rs 15.68 crore in 1995-96. As per the sanctioned scheme, the outstanding dues to the IRBI and the Union Bank of India were paid out of these sales proceeds. The company also plans to develop its surplus land at Prabhadevi in Mumbai, to augment its overall financial position.