The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a proposal to shut down Bharat Immunologicals & Biologicals Corporation Limited (BIBCOL), according to sources.
BIBCOL is a public sector undertaking involved in the manufacturing of vaccines and biological products. The company has faced significant operational, administrative and financial difficulties over the years.
BIBCOL’s Vaccine Production Halted in 2022
BIBCOL’s main manufacturing facility is located at Chola in Uttar Pradesh’s Bulandshahr district. The facility stopped producing the company’s key product, Oral Polio Vaccine (OPV), in late 2022.
The halt in production came amid the company’s broader operational and financial challenges, which had affected its functioning for an extended period.
Company Faced Financial and Administrative Challenges
BIBCOL had accumulated substantial losses over the years, adding to its financial difficulties. The company’s financial condition also resulted in prolonged periods during which employees reportedly went without receiving their salaries.
The proposed closure comes after the PSU struggled with a combination of operational, administrative and financial issues.