Government to give up to 33 per cent equity share of NDL to private sector
Kathmandu, September 26
The government is preparing to give up to 33 per cent equity share of Nepal Drugs Ltd (NDL) to private sector.
Informing that the NDL will be operated in Public-Private Partnership (PPP) modality, Minister for Industry Nabindra Raj Joshi said that the government is mulling over allocating 20 per cent to 33 per cent equity share in NDL for the private sector. Joshi also said that NDL management will be operated by the same private body which will be awarded the equity share.
“We have formed a committee to prepare a report on operation modality of NDL. The committee will finalise the exact per cent of equity share of NDL to be given to private sector. Tentatively, we are planning to issue 20 per cent to 33 per cent of NDL’s share to the private sector,” Joshi told media persons at the NDL’s premises in Babarmahal.
The state-owned drug producer is on verge of revival from its seven years of defunct state after the cabinet, two weeks ago, approved proposal of Ministry of Industry to restore NDL and issue Rs 146.5 million loan to reopen NDL under Good Manufacturing Practice (GMP), a quality standard of World Health Organisation.
Minister Joshi also said that the government will soon publish a notice calling proposals from private sector bodies that are interested to purchase equity share of NDL. “We will award the equity share to the private entity the come up with the best proposal,” added Joshi.
Meanwhile, the NDL employees that had been rendered jobless after it was closed down are delighted that NDL is finally coming back into operation.
“It was a matter of shame for us to be drawing monthly salary from the government since so many years. If NDL resumes its operations and we are able to go back to work, we will be happy to get paid for our work,” Rajeshswori Tamrakar, an NDL employee told The Himalayan Times.
Moreover, NDL employees also demonstrated today that the available infrastructure within the NDL is functional by making dummy production of cetamol. They said that NDL is in a position to produce cetamol, iron tablets, Jeevan Jal, amoxicillin, cufhist, cufnas, alazol and amgit medicines with the already existing infrastructures.
There are 97 employees at now defunct NDL. NDL is spread over 42 ropanies of land.