The People's Commission on Public Sector and Public Services (PCPSPS) has issued a sharply worded statement condemning the Union government's decision to sell 100% of the equity of Indian Medicines Pharmaceutical Corporation Limited (IMPCL)—the public sector flagship of Ayurvedic and Unani medicine—to a private allopathic drug firm, alleging gross undervaluation, procedural irregularities and a betrayal of the company's social mandate.
The sale, approved in May 2026, handed control of the unlisted Central Public Sector Enterprise (CPSE) under the Ministry of AYUSH to M/s. Skymap Pharmaceuticals Private Limited for ₹121,00,94,400 (₹121.01 crore), following a competitive bidding process . IMPCL, incorporated on July 12, 1978, is the country's leading public-sector manufacturer of standardised Ayurvedic and Unani medicines, with a portfolio of 1,059 formulations.
"Sold For Less Than Half Its Value"
The Commission's central charge is that the government has parted with a valuable public asset at a fraction of its worth. According to the statement, IMPCL holds 35.81 acres of prime leased government land at Mohan in Almora, Uttarakhand, whose value alone is "comparable to the price at which the government has approved 100% of the equity of the CPSE." Combined with a reported cash balance of ₹116.46 crore, the Commission estimates the total value of IMPCL's assets at "more than Rs 260 Crores" — some ₹139 crore higher than the sale price.
"We feel concerned that the government should decide to part with 100% of its ownership of IMPL for an amount that is less than 46% of its inherent value, with no tangible benefit in terms of additional fiscal resources and no evidence of the sale being beneficial to the society. We demand that the government revisits the decision and reverses it."
The Commission also emphasised that IMPCL was not a loss-making burden on the exchequer, having "reported an impressive threefold increase in profit for FY 2021–22 and paid a dividend of ₹10.13 crore to its stakeholders." Public financial data corroborates that IMPCL remained profit-making through 2024–25, recording net profits of ₹20.81 crore in FY23, ₹12.81 crore in FY24 and ₹17.65 crore in FY25 .
An "Allopathic" Buyer With A Conflict Of Interest
A further objection raised by the Commission is the profile of the buyer itself. Skymap Pharmaceuticals, it notes, "is a company that deals in allopathic medicines [and] has a conflict of interest in dealing in ayurvedic medicines," with "neither expertise nor interest in pursuing Ayurvedic medicines production."
The government, for its part, defended the process as rigorous and transparent: the two-stage open competitive bidding involved professional advisers, seven qualified bidders at the EoI stage, security clearance from the Ministry of Home Affairs, and final financial bids received by January 20, 2026 — with Skymap's offer exceeding the reserve price.
Loss Of R&D, Government Supply Chain, And Reservation Safeguards
The Commission warns that the transaction transfers far more than a factory. IMPCL's applied R&D in traditional medicine — spanning "formulation development, standardisation, quality control, proprietary products, adapting classical formulations and meeting pharmacopeial/essential drug list requirements" — is now in private hands, "supposedly the priority of this government." It also points to IMPCL's established government-market role, noting that in 2021 the Government e-Marketplace created 31 categories covering 311 IMPCL medicines for public procurement.
On the human dimension, the statement stresses that 54 of the company's 75 employees belong to SC/ST/OBC categories, and that privatisation "would render the future of IMPL's employees, particularly that of the disadvantaged groups uncertain," warning that "CPSEs like IMPL play an important role in empowering the disadvantaged sections of the society through their policy to enforce reservations."
Challenge Before The Courts
The IMPCL Karamchari Sangh (employees' union) has already moved the courts, challenging the sale on four grounds: undervaluation; the buyer's failure to meet prescribed financial eligibility criteria; inadequate protection for employees and stakeholders; and procedural irregularities . The Commission notes pointedly that "the eligibility criterion was set aside completely in the process."
The privatisation has also sparked street protests in Uttarakhand, particularly in Almora where the company's main factory is located, amid fears over job losses and the future of affordable Ayurvedic medicines.
Policy Over Finance
Tracing the decision's origins to an "in principle" approval by the Cabinet Committee on Economic Affairs in November 2017 on NITI Aayog's recommendation, the Commission argues the government's justification "is essentially policy rather than financial" — IMPCL being classed as a commercial activity outside the "strategic" sectors where the state intends to retain a presence. It also notes that the Ministry of AYUSH has told Parliament it has no future plan for IMPCL as a government company, preferring to pursue the AYUSH agenda through the National AYUSH Mission, AYURGYAN and AYURSWASTHYA schemes.
The Commission dismisses the fiscal rationale outright: "if privatisation of IMPL is meant to raise additional fiscal resources for the government, it is a highly imprudent decision, as the successful bidder necessarily raises the amount of bid from the same pool of resources in the market that the government can readily access on much better terms."
About the Commission
Led by Thomas Franco, Former General Secretary, All India Bank Officers' Confederation, the People's Commission on Public Sector and Public Services describes itself as a body of "eminent academics, jurists, erstwhile administrators, trade unionists and social activists" undertaking sectoral consultations ahead of a final report on the government's monetisation, disinvestment and privatisation programme. Its first interim report, "Privatisation: An Affront to the Indian Constitution", was published earlier.
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