Government plans to revive Nepal Drugs

The government plans to revive Nepal Drugs that has been closed since last three years.

"The government has decided to restart the closed Nepal Drugs to save the first drugs manufacturer and supply cheap but quality drugs to the people," said finance minister Shankar Prasad Koirala, here today during the discussion on Public Enterprises (PEs).

The government will prepare a short-term plan to run Nepal Drugs, he said, adding that the government enterprises should run professionally and competitively to take the market, instead of discussing on jurisdiction.

The participants, on the occasion, showed serious concern on low productivity of the state-owned enterprises.

Nepal Drugs will restart its operation under the Health Ministry but it has to be competitive to remain in the market, suggested finance secretary Shanta Raj Subedi. He also suggested the public enterprises not to dream of doing business from the loan of the government. "

The government buys Rs 1.20 billion worth medicines. "Nepal Drugs should be operated in professional manner with quality control," suggested health secretary Dr Prabin Mishra, on the occasion.

Nepal Drugs that used to manufacture anti-diarrhea mixture Jeeval Jal, Citamol, and saline water, has 240 employees, currently.

The participants also recommended lay off of one fourth staff and government guarantee to purchase its products.

However, the employees of Nepal Drugs have been opposing the plan to pay them off.

In the past too, the government had tried to revive some of the closed industry that could not become successful due to chronic political bickering and politics of the employees unions that have eroded the productivity but are getting salary from the national coffer misusing the people's hard earned money paid as tax.

The Public Enterprise Board had earlier valued the loss-making Nepal Drugs factory’s liabilities at around Rs 1.26 billion, whereas it has fixed assets worth Rs 5.37 billion.