The financially-troubled state-owned pharmaceutical company, which has remained closed for almost three years now, has recently received Rs 50 million from the Ministry of Finance. [break]Of this amount, Rs 20 million will go for covering administrative and salary expenses. The remaining Rs 30 million will be used in renovation works at the production facility.
The retrofitting work includes installation of heating ventilation air control unit to comply with the standard set by the government for pharmaceutical companies. This also includes upgradation of clean room and water treatment plant to ensure the manufacturing environment and products are free of bacteria, viruses and other pathogens.
“To complete these tasks, we are soon inviting interested parties to the bidding. If things go according to our plan, we will publish a tender notice within the next 10 days,” Nabin Kumar Jha, general manager of Nepal Drugs, told Republica.
Once these tasks are complete, the company will be able to produce Jeevan Jal, an oral rehydration solution, and 10 different types of tablets, names of which have not been finalized yet.
But to manufacture these products the company will need an additional Rs 10 million. “The amount is needed to purchase raw material required to manufacture these products,” Jha said, adding, “The revenue generated from operation of the factory will be sufficient to cover administrative and salary expenses of at least four months per year.”
Nepal Drugs was shut down after the Department of Drugs Administration refused to renew its operating license, saying that its production standard did not comply with minimum manufacturing standard set by the drugs regulator.
Since then the government has been providing a sum of around Rs 4.2 million per month to cover salary expenses of 279 staff at the company. The government has been trying to reduce this liability by introducing voluntary retirement scheme but the company has demanded Rs 579.1 million to lay off staff, which the finance ministry has said is an “exorbitant amount”.
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