Tuesday, July 7, 2020

'Operation Warp Speed (OWS)' - Accelerating towards COVID-19 vaccine

Goal of OWS is to deliver 300mn doses of safe, effective vaccine for COVID-19 by January 2021. This project is a partnership among agencies under US Department of Health and Human Services (HHS) like FDA, CDC, NIH, BARDA and Department of Defence. 

Today OWS announced the largest US government Covid-19 vaccine contract to date - a whopping $1.6 billion contract with Novavax. In fact Novavax is the fourth company to get federal funds for phase 3 clinical trials, where each trail includes 30,000 people. Earlier government gave more than $1.2mn to AstraZenca. Moderna ($483mn, phase three trails might start by end of this month) and J&J ($456mn) also received funds for phase 3 contracts. 

Hope that at least one of them will break through and humanity can finally claim victory over COVID-19. 



Migrating back and forth: The struggle for survival - What is going on in Odisha?

Sun Temple, Konark

"They fled their workplaces from Rajasthan in whatever way possible, fleeing the COVID-19 infection. But barely two months later, the migrant workers from Odisha’s Balangir district have returned to their workplace right across the country, to stave off hunger....More than seven lakh people mostly migrant workers had returned Odisha following COVID-19 lockdowns"
- The Hindu

Labours fled the cities and went to home states when COVID-19 killed their jobs. Now they are going back to same place, not because COVID is over but being alive became more important than the killer disease. I took this Odisha specifically becuase its a oxymoron. This state is blessed with everything that nature can give; still close to a million people from Odisha are working as migrant labours in other states. Even in terms of total number of bonded labours identified and released Odisha stads 3rd in India.

If you look at Odisha there are,
1. No political unstability.
2. Abundant natural resources - This state has one fifth of India's coal; a quarter of India's iron ore, third of bauxite and rare earth minerals like Chromite.
3. One of the biggest steel plants
4. Population density is not so high, this mean land is available for projects
5. Large coast line and a major port - Paradip
6. Abundant supply of water
7. Potential to be tourist heaven

Of course there are problems like Maoists etc. I think Odisha should do a self searching to see why the state is not in the list of India's front-line states. Almost a decade back I spent a week in Odisha criscrossing the western areas. Odisha is beautiful; in fact I would say one should visit Konark sun temple at least once in a life time. 

I request the state government which is there for two decades to seriously use that potential and bring Odisha to the forefront where it belongs. Saudi, Qatar, UAE sitting on huge oil reserves attract migrants not the other way around; then why can't Odisha?



Polluting the Arctic - Another Disaster in Russia's High North - Norilsk Diesel Spill

How someone be able to pollute some of the most pristine and serene places on earth - The arctic? Beauty and wilderness of that area is indeed a deterrent. If not for those two, then cold desert with extreme weather conditions can shake anyone's mind.

What if there is a fortune under that permafrost? I bet there would be someone, who wanted to get a share of that fortune; whatever be the cost. If environment controls are missing or not implemented, then nothing can stop or control or regulate those who wanted to exploit the fortune.

What lays beneath the ground is wanted by many. To help those dreams cities came up; industries came up. Most often environment laws remembered more on breaking than obeying.

Norlisk Spill

From ESA's Copernicus Sentinel-2

This is exactly what happened with Norilsk-Taimyr Energy Company (part of Norilsk Nickel Group) run combined heat and power plant CHPP-3 based on Norilsk on May 29. On that day 21,000 cubic meters of diesel spilled into waters, contaminating approximately 1,80,000 sq.m of Russian North. Russians classified this spill as federal-level emergency.  This is not the first-time spills are happening in Russia's northern areas. Similar spill in 1994 - 21,000 cubic meters- resulted in contamination of large swaths.

"The former head of Rosprirodnadzor, Oleg Mitvol, has claimed that a cleanup of the disaster site will require more than 100 billion rubles ($1.42 billion) and at least 5–10 years for the local environment to recuperate"

·        Znak.com, June 3

“the fuel has contaminated [Lake] Pyasino […] it is imperative not to let it spread to the Pyasina River, which flows further north”

·        Governor of Krasnoyarsk Krai, Alexander Uss; Interfax, June 16

"According to the All-Russian Research Institute of Fisheries and Oceanography, the incident in Norilsk caused significant damage to local aquatic biological resources, and it will take time to ascertain its actual impact"

·        TASS, June 18.

“the lake (Pyasino) is de facto dead”

·        Vladimir Kirillov, Siberian Branch of the Russian Academy of Sciences.

Pyasino is (I better say 'was') a freshwater lake connected to Kara sea through Pysina River. This lake seems to be a dumping ground for many industries and no longer remains as a lake.

What is happening in Russia's High North?

Environment expert with Greenpeace Russia says that, the main culprit behind this accident is climate change which let to rapid melting of permafrost under the ground.

Permafrost melting is not limited to Russia; it is a wider phenomenon in entire arctic region. Once permafrost melted, then the land would sink in. This would damage structures built on top of that land. For a long time, those layers were frozen, and people did not have to worry about its melting. Hence large number of structures were built on top of those layers when it was stable.

Did this spill happen due to climate change only? Alexey Knizhnikov (World Wildlife Federation–Russia) says no. As per him, CHPP-3 “should have been fortified with dams blocking the flow of [locally stored] toxic substances”. It is not that, there are no environmental code for the same. However, when it comes to cost, companies cut the corners if they can. Same facility had an accident - although at a smaller scale in 2016.

Normally accidents result in some soul-searching and fixes. Not here. Rostekhnadzor (Federal Service for Ecological, Technological and Nuclear Supervision) even warned the company about the problems in the same plant in 2017 and again in 2018. As per reports, no steps were taken to address the concerns.


Permafrost is any ground that remains completely frozen for at least two straight years. Permafrost is common in high altitudes and poles. In fact, a significant portion of northern hemisphere sits on top of permafrost. It is not necessary that, permafrost regions are covered in snow. This is made of a mixture of soil, rocks, sand and held together by ice.

"A layer of soil on top of permafrost does not stay frozen all year. This layer, called the active layer, thaws during the warm summer months, and freezes again in the fall. In colder regions, the ground rarely thaws—even in the summer. There, the active layer is very thin—only 4 to 6 inches (10 to 15 centimeters). In warmer permafrost regions, the active layer can be several meters thick" - NASA

What happens when permafrost thaws?

A block of thawing permafrost that fell into the ocean on Alaska’s Arctic Coast

i.e. when ice inside permafrost melts, leaving behind water and soil.

"Many northern villages are built on permafrost. When permafrost is frozen, it is harder than concrete. However, thawing permafrost can destroy houses, roads, and other infrastructure.

When permafrost is frozen, plant material in the soil—called organic carbon—cannot decompose, or rot away. As permafrost thaws, microbes begin decomposing this material. This process releases greenhouse gases like carbon dioxide and methane to the atmosphere.

When permafrost thaws, so do ancient bacteria and viruses in the ice and soil. These newly unfrozen microbes could make humans and animals very sick. Scientists have discovered microbes more than 400,000 years old in thawed permafrost." - NASA

Point to be noted here is - northern areas. This is not just Russia. There are many countries located there. If you look at Russian map, huge swaths of that country sit on top of permafrost. When temperature was fine it was good. However, with rising temperature, permafrost thaws are going to rise. Lot of infrastructure (many dating back to Soviet era) and for equipment to extract gas and oil are built on top of permafrost. When it thaws, that infrastructure is going to break.

Cities like - Norilsk, Vorkuta, Tiksi, Magadan, Igarka, Yakutsk, Anadyr, Novy Urengoy (and many other northern cities are going to suffer the damages. Now the question is, who will rebuild infrastructure in those large swaths? This is going to cost a lot and if no one is there to take care, then there will be more accidents, spills, and pollution. "according to one study, widescale permafrost thaws across Russia could cost more than $80 billion in infrastructural damages".

See what happened in Norilsk. Fuel tank was depressurized due to gradual caving of area of pile foundation and the fuel fell in to Bezymyanny stream, the Daldykan and Ambarnaya rivers (this one flows into Lake Pyasino - located some 20km from Norilsk). Same thing can be repeated anywhere in Russian high north.

"Currently, more than 700 people and about 300 pieces of equipment are involved in the elimination of emergencies; the Ministry of Emergencies aviation is connected. Booms are installed on the water to localize fuel stains. Petroleum products are collected from the surface of rivers, nearby lakes and tributaries, as well as from coastal soil" - Interfax 

Problem with diesel is, "petroleum products not only rapidly spread to the surface, but also quickly settle. On top of the film, the supply of oxygen from the air and sunlight shuts off, and below the fuel seeps into the ground, and several times faster than water…. one liter (diesel) is enough to deprive oxygen of 40 thousand liters of water or make half a ton of soil lifeless".


Permafrost thawing is happening all over the world; with rising temperature it is only going to increase. This will destabilize all infrastructure built on top of that - oil extraction facilities, home schools, roads, tracks, pipelines. This is going to change life for millions who live in Arctic.

"published findings, accepted for publication in Environmental Research Letters, a team of researchers (lead author is Dmitry Streletskiy) found that 20 percent of existing structures and 19 percent of other forms of infrastructure built on permafrost in Russia will be affected by climate change by 2050. And it will cost an estimated $16.7 billion to reconstruct the damaged buildings and $67.7 billion to replace other infrastructure, like roads and pipelines… these estimates don’t include repairs to fix minor damage — only irreparable changes that would require rebuilding from the ground up. And they only count existing infrastructure, not any that’s being planned or for which there is an anticipated need" - Arctic Today

This is just Russia, add all other countries which share Arctic and imagine the cost - just to fix the infrastructure (homes, schools and more). Since we cannot reduce global warming quick enough, governments in the area need to invest in securing infrastructure in high north. If they cannot, at least move polluting industries out of those areas.



1.      https://www.arctictoday.com/permafrost-thaw-in-russia-alone-could-cost-more-than-80-billion-in-damaged-infrastructure-report-says/

2.      https://static.life.ru/publications/2020/5/4/1341365149443.868.mp4

3.      https://life.ru/p/norilsk-ekologicheskaya-katastrofa

4.      https://www.interfax.ru/russia/713304

5.      https://climatekids.nasa.gov/permafrost/

6.      https://tass.com/emergencies/1164423


Sunday, July 5, 2020

Kerala's Tribal Belt to India's Silicon Valley (To Bangalore via Mulli, Ooty)

Mannarkkad – Mukkali - Agali – Mulli – Ooty – Masinagudi - Bandipur - Mysore – Bangalore

I saw Western Ghats every day from my birth till I left for Bangalore as part of job. Even in Bangalore, nothing fascinated me like those memories. Hence, I decided to go to Western Ghats as much as possible and to try to cross the mountain on all routes.

So far, I completed,

a.      Via Kanyakumari (TN) - Nagarcoil (TN)

b.      Via Palakkad Gap [Palakkad (KL) - Coimbatore (TN)]

c.      Via Anakatti [Mannarkkad (KL) - Coimbatore (TN)]

d.      Via Amarambalam, Mudumalai, Bandipur National Parks [Nilambur (KL) - Gudlupete (KR)]

e.      Via Bandippur Tiger Reserve [Muttanga (KL) - Gundlupete (TN)]

f.       Via Nagarhole National Park [Kattikulam (KL) - Kabini (KR)]

g.      Via Brahmagiri Wildlife Sanctuary [Virajpet (KR) - Iritty (KL)]

h.      Via Sakleshpur [Sakleshpur (KR) - Subrahmanya Road (KR)]

i.       Via Bhagwan Mahavir Wildlife Sanctuary

j.       Via Kulem - Castle Rock

Looking back, I think I could have completed couple more routes like, Teni-Kumily and Aliyar-Athirapally.

Mannarkkad to Mukkali

I never knew about this route until Eldho told me on an evening that they went to Ooty via Mulli. Back then I had no idea that the route existed. Even though vast stretches of Attapadi mountain ranges comes under Mannarkkad taluk, I hardly went to that area and had little understanding about roads there. So, I created plans to go through Mulli to Mysore and from there to Bangalore.

On that eventful day, I left home an hour later than planned. Within 10-20 minutes I crossed Mannarkkad town; took a left turn to Mannarkkad -Anakatti-Coimbatore road. I went slowly. It's not only the wild beauty of hills which slowed me down excellent condition of roads as well!!! After crossing Aanamooli and taking couple of hairpins I reached Mukkali junction. Mukkali is the entry point to Silent Valley National Park.

Silent Valley

In terms of size, Silent Valley is a small national park. Its core zone is just around 90 sq.km. (buffer zone is 148 sq.km). This national park is part of Nilgiri subcluster. Silent Valley is also known as Sairandhrivanam (Sairandri means Draupati, wife of Pandavas and Vanam means Forest). It is believed that, British named this valley as Silent Valley because of the absence of Cicadas in the forest. This mountain range is one of the three hot spots of endemic centers in Kerala. Other two are, Agastyamala and Anamalai High ranges. This is one place where the combined might of government bureaucracy and KSEB (Kerala State Electricity Board) failed in front of monkeys knows as Lion Tailed Macaque. Well, I am simplifying it!!!

Kerala border post at Mulli

Mukkali to Mulli

From Mukkali onward road is parallel to Bhavani river. Further up comes Tavalam, from here I took left to Tavalam-Mulli road. After crossing the bridge, it was a smooth sail. From here Bhavani river will be on your right side. Before you reach Mulli, for a brief time you will enter Tamil Nadu and come back to Kerala.

Mulli police outpost is the last point in Kerala side. Since forest areas in and around Mulli are considered to have Maoist presence, Kerala Police deployed units of Thunderbolts here. Whoever passing through this road has go to the outpost and enter license details there. Thunderbolt is the commando wing of Kerala Police. At Tamil Nadu check post also it’s the same procedure; only difference is one need to pay 50 rupees there.

From here onward its almost an empty road. For a while, I wondered what I would do if I met any armed Maoists; fortunately, it did not happen. Due to so many turns, narrow road, and blind curves one cannot move fast through this stretch.  At Gaddi there is a dam and powerhouse known as Canada Powerhouse. Then a series of hairpin bends came. From dam onward there was 43 hair pin bends. In fact, I updated my own record of crossing maximum hairpins in a day (BR Hills to Bhavani Sagar in Satyamangalam Tiger Reserve). At that time, I hardly knew that I was going to update that record again on the same day.

 Manjur Town to Ooty

This road took me to Coonoor - Manjur road; from that junction I went in wrong direction and ended up in Manjur town. Well I had to come back and finally on the way to Ooty. On the way I got lot more hairpins; kept updating my number of hairpins record in a single stretch!!! Kiloor… Chamraj estate… Kaikatty… Kallakorai Osatti… Lovedale… Ketti Valley viewpoint… Charring cross…

Ooty (Udagamandalam, Nilgiris district)

Finally, at Ooty - once a calm and quiet tribal area. This hill area came under various kingdoms before its annexation by British East India company in 1799. In 1819 John Sullivan, then collector of Coimbatore district camped at Kotagiri and was thrilled by the beauty of Ooty. Todas ceded land to Sullivan; he built roads, which was later extended to Coonoor. Sullivan is known as the founder of British settlement in Ooty. He also introduced horticulture in Nilgiris; as well as Potato, Barley and other agricultural products. Sullivan also built Ooty lake. This hill station attracted Europeans in India and in 1928 Ooty became a military condonement. It is to be remembered here that, his son Henry Sullivan went on to become the collector of Coimbatore and another son Andrew Sullivan served in Madras Civil Service.

Ooty went on to become the summer capital of Madras presidency and nearby Wellington become home to regimental center for Madras Regiment. Madras regiments history goes back to 1660s; however, it was formed as a battalion in 1748. This regiment was commanded by notable people like Robert Clive, Arthur Wellesley etc. Ooty also has a good number of top boarding schools.

Post-independence Ooty (along with Kodaikanal) became top honeymoon destination for Keralites; before Singapore, Thailand, Malesia, Bali etc took that place.

However, urbanization destroyed a lot in Ooty and it is slowly looks like any other town. I slowly crossed Ooty town via Ooty - Mysore road. Big pine tree forests were really good and pull anyone in. Unfortunately, it was afternoon and I wanted to reach Bangalore before midnight. Looking back, I could have stayed there for couple of days and explore - including Nilgiri mountain railway, Avalanche lake, Ooty lake, Emerald lake, Botanical garden, Needle rock and Kodagiri.

Soon I reached Tamil Nadu RTO check point at the exit. My plan was to take Masinagudi road to Bandipur. Unfortunately, traffic police did not let me take that route. They asked me to go via Gudallur. After denying the request for a second time, I took Naduvattam - Gudallur road to reach Bandipur. It’s a good road; numerous Tamil Nadu and interstate buses were parked on roadsides. Both school children and college students want to spent time in Ooty. Sides of the roads were so beautiful that I want to get down and sleep for a while.


Somewhere around Naduvattam, on a turn, I looked at the valley on the right for couple of seconds. Suddenly a SETC bus colored with green and light green paint appeared in the turning, coming from opposite direction. I hardly get time to think or do anything. I hit the bus head-on, right under driver's seat. I flew up in the air and after couple of seconds hit the road. For a moment everything blinked in front of my eyes. For five to ten seconds I simply lay on the road trying to understand what just happened.

I tried to count back and forth from 0-10 and try to remember couple of things. It is all working. I looked at my bike, its fell in the middle of the road, petrol was coming out from somewhere; handle was twisted; headlight was gone; there was a massive dent in petrol tank; in short entire front was gone. Back and the center portion was relatively untouched. If it was not for the iron body of Thunderbird, the question of repairing the bike may not even come up.

I tried to wake up and did it after some struggle. My right hand was broken. Left looked fine. There was a surge of pain in right leg, but I was not sure whether it is broken or not. People started coming out from the bus and started enquiring about what happened. After some time, Police also came. As per them, if I don’t want to file a FIR, then they wouldn't get involved. At that time, I was not sure whether filing FIR was a good idea or not. Hence, I said no. Later I realized that was a mistake. 

Let me tell you couple of things I learned from mistakes (for those who undertake long journeys).

a.      Take pictures of your vehicle from all major angles before you start. This will help you if insurance surveyor contests your claim

b.      Always go for FIR if the accident is serious. Always involve Police, if other side starts shouting or people who assemble in accident spot demands money on behalf of other party. 

c.      If possible, take picture of accident spot and all vehicles involved.

d.      Note down address of the place.

e.      In case you are in bike, make sure that you wear all protective gears (helmet, steel covers for hands and legs)

f.       For biker's - make sure that you have a good crash guard.

g.      Note down the number and whatever other possible details of other vehicles.

Real problem for me was leaving that forest area and reaching Bangalore. As per SETC (bus was going to Pollachi) driver, mistake (which was correct since bus was on its side and not speeding) was on my side and I need to pay for damages. Amount was 3k - to replace the dual headlamps on driver's side and metal sheets in the front. I didn't have that much money with me at that time and there was no ATM anywhere near that forest area. I also need to find a vehicle which could transport my bike to Bangalore.

There were a stream of vehicles going to Gudalur; I got into a lorry and went to town (which was some 25-30 kms away). Driver was good; he asked his assistant (in his early 20s; this happened in 2018 and I am not able to recall his name now) to help me. This guy spoke Malayalam. He dropped both of us somewhere in Gudalur. I tried multiple ATMs, but all were either empty or not working. Finally, I got a machine which had money. Next target was a hospital. Interestingly some clinics were closed on that day. Since the next day was Divali, people were in a hurry to reach home. Limping, I slowly walked forward and reached an Ayurvedic clinic. Doctors and nurses in that clinic were Keralites. They confirmed that the hand was broken, and I should see a doctor after reaching Bangalore. For time being, they applied some ayurvedic balms and tied my hand to a bamboo stick so that it will stay in place. They even advised me to leave the bike there and take it later. I had no idea when I would be able to come back; hence, I said thank you and left.

Lorry driver's assistant told me that, he will arrange a vehicle for me and my bike to go to Bangalore. We waited for a while and then a Mahindra jeep came. In that jeep, I went back to accident spot and paid SETC. Pulling Thunderbird into that jeep was not an easy task; some way they pulled it inside and tied tightly with jeep. We went back to Gudalur town and after stopping for some 15 minutes. Without any tablets or injections pain kept on rising.

Jeep guy charged me for both directions; since the next day was Divali (2018 Divali) as per my newfound friend and his friends not many people were interested in leaving the town on that night. For me total distance to travel was some 300-310km. My new friend told me that, he talked with a jeep driver and total cost was 10k and I have to pay that amount in advance. I obliged. If it's today, I don’t think I would have agreed to that. But then it was different time and situation. I was desperate to reach Bangalore. In fact, for their help I even gave 500 to them. Driver came in and we left Gudalur.

Now the real twist happened. Jeep driver asked me for money; I told him that I already paid. He asked me how much I gave, I told 10k. He immediately called jeep's owner. Then I understood the whole set up. My newfound friend and his friend was not actually helping me. What they did was, they made a deal with jeep driver for 8k and told me it was 10k. They took the difference. In addition to that, I, without knowing the scheme paid another 500 to them for their help.

That journey was a horror. My pain kept on increasing, I was not able to move my right hand anymore. Jeep was not covered well, and hence cold November wind came in. Jeep driver was never been to Bangalore and no idea about the route. I had to be awake for the whole time to give him the directions. Even in those long and wide roads he went slowly. On top of everything, he kept on asking time and remaining kilometers in every 15-20 minutes. In that night, I just wanted to sleep for a while and it never happened. After reaching Bangalore, he kept on asking for another 1000, which I eventually paid. 

After reaching the apartment, I called Akhil - my roommate. Akhil with Jeep driver and security guard pulled the vehicle out of that jeep. Then we called an Uber and went to St. Johns Medical College. Doctor's applied cast on my right leg and manually fixed bone alignment on right hand applied cast there as well. Even after taking all injections the procedure was very much painful. Early morning next day we left the hospital. Now one month on bed rest.

Some more lessons learned from accident

Most of the time, people who help us in accident, have good motives. However, when money comes into picture be careful. In case you know any friends or relatives in that area call them.

There are people who wanted to make money even in tragedies.

Take decisions slowly. Right after the accident you may not be able to take decisions. Give some time to think.


 Note: 1k = 1,000

Saturday, July 4, 2020

Glow & Lovely & Handsome - What is fair and unfair?

 "HUL today...introduces Glow & Lovely, the new name for the Fair & Lovely brand. Over the next few months, Glow & Lovely will be on the shelves, and future innovations will deliver on this new proposition. The Men's range of Fair & Lovely will be called 'Glow & Handsome'" -  HUL

Emami hit back immediately stating that, they have a similar product called, Fair & Handsome for men's personal care.

"...Emami Ltd said it will seek consult legal experts over rival Hindustan Unilever Ltd's decision to rename its men's fairness cream brand as 'Glow & Handsome' that bears similarity to Emami's 'Fair & Handsome' brand of men's personal care products." - Livemint

Obviously, men will be confused; whether they need to make their faces glow or fair!!! May be, they can use both products so that face will be fair, glowing, and handsome!!! By the way, if HUL (Hindustan Unilever) is dropping the word fair since it is discriminating then what Emami will do? Shall they keep it? Now if they drop it, then what will the new name for Emami's product? Obviously not 'Glow'... any guess?

You might be wondering what the big fuss about name? Well, it is actually a big thing. Let us look to Unilever (daddy of HUL). Uniliver is a very influential company worldwide; its an old multinational and have products selling in 190 countries (https://www.unilever.com/about/who-we-are/about-Unilever/) and used by billions (remember its billions with a 'b'!!!). They own a plethora of brands. HUL is not different, they operated in India even before independence, and have popular brands like, Axe, Boost, Comfort, Horlicks, Rexona, Lifebuoy, Lux, Pepsodent, Wheel, Brookbond etc. Their personal care portfolio is impressive - Lakme, Ponds, Aviance, Sunsilk, Brylcreem, Clinic plus, Dove etc. So, the choice they make and their marketing is going to influence the world. Just imagine how De Beers, 'A Diamond is Forever' of 1947 changed that industry forever. I really doubt whether any amount of marketing can change Indians obsession with white face!!!

But the question is,

1. What HUL is going to achieve by this name change? Product is same, objective is same. Simply old wine in new bottle. If they are not ready to drop the product altogether (which is quite a successful brand!!!) what is is point? I do not think most Indian customers care much about the word 'fair' in 'Fair & Lovely', they may even love it. But yes, the success of the brand puts a glaring question mark on society about the way they treat people whose face is not white.

2. Even in 21st century why we need to look towards US for making some change here? This name change is said to be triggered by incidents of police brutality against blacks, the 'Black Live Matters' movement in US (Johnson & Johnson announced that, it will retreat from skin whitening business).
If brown live matters, these types of products should not have been launched in Brown India in the first place.


Thursday, July 2, 2020

Indian Pharma - Why government should not run its own companies?

Sun Pharmaceutical

Dr. Reddy's Laboratories

Divi's Laboratories


Aurobindo Pharma

Torrent Pharmaceuticals

Lupin Ltd

Zydus Cadila Healthcare

Alkem Laboratories

Biocon Ltd


If you lived in India, you might have heard or used products from at least one company mentioned above. All are champions of Indian private sector. Most of them expanded their networks and now operating far beyond the shores. They are playing a crucial role in bringing healthcare affordable to millions of poor people across the world. There are lot more companies; however, for the purpose of this article I am just mentioned ten.


Now there is another list,


Hindustan Antibiotics Ltd (HAL)

Indian Drugs and Pharmaceuticals Ltd (IDPL)

Rajasthan Drugs and Pharmaceuticals Ltd (RDPL)

Bengal Chemicals and Pharmaceuticals Ltd (BCPL)

Karnataka Antibiotics & Pharmaceuticals Ltd (KAPL)


All five are owned by union government (some as joint venture with state governments). Let's look in to these companies one by one. By the way, all five were formed (or nationalized) within first 35 years of Independent India; a time when socialism was running high on Indian veins.


Hindustan Antibiotics Ltd (HAL)


This company manufactured drugs like Penicillin, Streptomycin and a number of other formulations. HAL went through rehabilitation plan in 2006 for 137.59 crore. However, that plan failed to turnaround the futures for HAL. Later one more plan came with a recommendation to infuse 670.46 crores. This time cabinet looked the other way and approved selling of its surplus to meet liabilities. During that time, union government forgo 307.23 crore payable to them and deferred liabilities worth 128.68 crores. In addition to that, infused 100 crores to meet salaries, wages and critical expenses. Final decision was strategic sale of government shares.


Indian Drugs and Pharmaceuticals Ltd (IDPL)


IDPL manufactures Antibacterial /Anti-infective, Analgestic /Anti-inflammatory, Gastrointestinal, Respiratory Tract, Contraceptive/OCP, Vitamins/ Mineral, Anti allergic, Anti fungus, Antimalarial, Anti diabetic Cardiovascular etc.


Union government on December 2016 decided to shut down this company after meeting its liabilities from the proceeds of sale of surplus land to Government Agencies.


Rajasthan Drugs and Pharmaceuticals (RDPL)


A joint venture with Rajasthan government, RDPL used to produce Anti-Biotic, Anti-Malarial, Antacids, Anti-Inflammatory, Anti-Bacterial, Anti-Fungal, Vitamins & Minerals, ORS, Anti Retro Viral, Anti Hypertension etc.


RDPL is not doing any production since October 2016 after a fire incident in its Jaipur plant. Central government decided to shut down this entity after settling the liabilities via sale of surplus lands.


Bengal Chemicals and Pharmaceuticals (BCPL)


BCPL manufactures industrial chemicals (Alum), branded and unbranded generic pharmaceuticals, hair oil and disinfectants etc.


This company got a revival package worth 440.60 crores in 2006. One decade after that, government decided to divest from BCPL and set the books clean by selling surplus lands. However company is currently profitable.


Karnataka Antibiotics & Pharmaceuticals Ltd (KAPL)


KAPL is joint venture with government of Karnataka and manufactures Dry Powder Injectable, Liquid Injectable, Tablets, Capsules, Dry Syrups and Suspensions etc. This is the only one in the block which is consistently profitable. However, union government decided to sell its shares in this company.

Government PSUs



Two completely different tales for Indian pharma companies!!! One group is celebrated as champions and the second one is considered as lost cause.


Some reasons identified by union government for PSU's sickness are,


  • large monolith-type integrated production facilities producing chemicals, bulk drugs and formulations.
  • Out dated plant and machinery
  • Obsolete technology for bulk drugs
  • Excess manpower, high salary bill
  • Maintenance of huge township, schools and hospitals in all locations of IDPL.
  • Medicines manufactured by IDPL were under Drugs Price Control Order (DPCO) by the Government prior to liberalization in 1991.
  • Shift in Government policy resulting in shifting of the canalization agency from IDPL to State Trading Corporation (STC).
  • Intense competition from private pharmaceuticals companies which did not have to bear the burden of social infrastructure of setting up and maintaining townships, schools, hospitals etc. and had leaner production facilities.

One interesting fact in PSU's case is; to settle liabilities government decided to sell excess land. Looks like these companies own huge tracts of excess land.

  • Why government is allocating so much land to PSU's which is not even used in the first place?
  • Why a drug manufacturer runs townships, schools and hospitals?
  • How companies working in an industry which is highly profitable is making huge losses? It's not that private companies are inventing new medicines; they are also minting money via generics.
  • How these companies managed to make losses even after getting government contracts on priority; and its potential customer base always showed a huge growth. It's guaranteed that, it will never come down.

We need to ponder more on these questions. I believe in the principle that, governments should not own companies or organizations; except may be in public education and security. Since we already have lot of government owned companies let's worry about how we are running it. First of all government owned companies should not be run by politicians or civil servants. Let it run like any other company, answerable to  regulators and market. Let those companies focus on areas which they are operating. Not running schools and townships. Committees after committees and reports after reports will not do it. Government need have the will power to let things go; this may sounds simple but implementation is difficult.


Privatizing is neither a one stop solution for all sick government companies not a silver bullet to fix all underlaying structural issues.

Let them go out of the clutches of politicians and bureaucrats

Let not use them as a tool to propagate socialism.

Let's not make the plants of those companies a municipality where the company runs everything like schools, transportation, hospitals, townships etc.

Let's not make it a place to appoint relatives and favorites

Let those companies run like any other private companies.


It's not like all government run companies are doing bad across the world. Case in point is Government of Singapore; where it's not the politicians or bureaucrats, but qualified professionals runs the show with independence and decision making authority. Singapore government owns, companies like Singapore Airlines, Temasek Holdings, ST Engineering, DBS Bank etc. which are efficient and profitable. There is no reason why it can't be done in India.