The Centre has rejected the Kerala government’s bid to take over HLL Lifecare, a contraceptive manufacturing company based in Thiruvananthapuram, Kerala, claiming that the state government's bid did not meet the eligibility criteria.
Minister Bhagwat Kishanrao Karad said the Kerala government submitted a bid for the 'Moods' condom maker to Pricewaterhouse Coopers under the disinvestment process.
"The bid was given due consideration...However, as the said bid did not meet the eligibility criteria..the Expression of Interest of the State Government could not qualify," he said, adding that a communication in this regard has been sent by Pricewaterhouse Coopers to the State Government.
HLL, a profitable Central Public Sector Enterprise, was put on the block under the Central government's policy of exiting all sectors where the private sector has come of age.
"..the economic and job-creating potential of the public enterprise and the economy is better realized in the hands of the private sector through the infusion of capital and better management practices, while freeing public resources for social sector and infrastructure," the minister said, explaining the decision.
HLL Lifecare Limited is a Central Public Sector Enterprise (CPSE) under the Union Health Ministry. It is involved in manufacturing and marketing a range of contraceptives, women’s health care products, hospital supplies as well as other pharmaceutical products.
HLL played a significant role in the procurement and distribution of emergency medical supplies during the Covid-19 pandemic.