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Government to Revive Nepal Drug

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Government to Revive Nepal Drug
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September 20: Nepal Drug Limited (NDL), the state owned pharmaceutical company which was closed since last six years to start its operation. The cabinet of Ministers has endorsed the proposal of reviving the company submitted by the Ministry of Industry.


The government has decided to invest Rs 146.5 million as a loan for making the state owned company as per the international standard.  “The investment will be used to make international standard physical infrastructure along with purchasing required machineries and tools for the company,” said Nabindra Raj Joshi, Industry Minister. According to him, around 70 per cent machines are in proper condition. “We will hire some experts on contract from open competition to handel the management of the company for a while,” he added. 


The government has also decided to engage the private sector in the company. Minister Joshi informed that discussion on the plan in which assigning management to the private sector in contract and also to sell fixed equity to them is being conducted.  “We are planning to sell 1/3 of the total shares to the private sector keeping two third of the share under government’s ownership,” he said adding “The Ministry is exercising in a bid to operate the company as soon as possible.” 


According to Ministry, NDL will produce essential medicines on the first term. Joshi said that there will be no market problem for those medicines as the government itself will buy such medicines. 


Earlier, the company was producing 120 kinds of medicines till 2060 BS. However, due to political interference, its condition got deteriorated slowly. 
“NDL has planned to repay the loans when the company comes into full operation. Thus, the government may not have to invest more capital on it,” said Ramesh Kumar Nimitta, General Manager of NDL. 
  

 

 

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