The Indian Medicines Pharmaceutical Corporation Limited (IMPCL), a key government enterprise based in Almora, Uttarakhand, is currently under scrutiny as the government considers disinvestment or privatization options for the Central Public Sector Undertaking (PSU). Despite its strong performance and vital role in the supply of ayurvedic and Unani medicines, there are growing concerns about the potential implications of its privatization.
According to experts, the future of IMPCL is critical for maintaining the quality and accessibility of ayurvedic and Unani medicines in India. The government’s decision on the disinvestment or privatization of IMPCL will have far-reaching implications for employees, local communities, and the broader healthcare sector. Stakeholders are urging a reconsideration of the privatization plans to ensure that national interests and public welfare are safeguarded.
A comprehensive review of the potential impacts on employees, local communities, and the continuity of medical supplies is essential. The government should consider the broader implications of privatizing a profitable PSU with national significance.
According to experts, there is an urgent need to introduce clear guidelines to protect employees’ rights, benefits, and job security. Ensure that the quality and availability of ayurvedic and Unani medicines are preserved. There is a need to engage with employees, local communities, industry experts, and other stakeholders to address concerns and gather input on the disinvestment process. Transparency and inclusiveness in decision-making can help mitigate adverse effects.
Established in 1978, IMPCL has a long-standing reputation for manufacturing high-quality ayurvedic and Unani medicines. The company has played a pivotal role in the National Ayush Mission (NAM), contributing significantly to public health with its extensive range of medicinal products.
IMPCL's recent financial performance reflects its success. The company's turnover increased from Rs. 97.04 crore in 2019-2020 to Rs. 260.84 crore in 2021-2022. The profit before tax surged from Rs. 15.69 crore in 2020-2021 to Rs. 45.41 crore in 2021-2022. IMPCL paid a 15% dividend on profit after tax (PAT) amounting to Rs. 1.66 crore for 2020-2021 and a 30% dividend amounting to Rs. 10.13 crore for 2021-2022.
Recent developments have raised concerns among stakeholders as the government has issued a second Expression of Interest (EOI) for the privatization of 100% of IMPCL's shareholding.
The current EOI lacks provisions for the protection of existing employees. There are no guidelines ensuring job security, continuation of benefits, or protection of promotions for the staff post-privatization. The EOI excludes Central Public Sector Enterprises (CPSEs) from participating, which critics argue is unjustified and could limit competitive and strategic options.
There are no assurances regarding the continuation of IMPCL's ayurvedic and Unani medicine manufacturing. This raises concerns about the future stability of the herbal pharmaceutical sector.
IMPCL supports approximately 8,000 to 10,000 people directly or indirectly. The privatization could disrupt local employment and economic development in the Kumaon hills, where the company is a significant employer and contributor to the local economy.
The proposed privatization of IMPCL appears to contradict the government’s "Make in India" and "Atmanirbhar Bharat" (self-reliant India) initiatives. Critics argue that the privatization of a profitable and strategically important PSU could lead to monopolistic practices, destabilize local economies, and undermine national security by compromising the supply of essential medicines.
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