The pharma industry associations in the country are working at cross purposes on the issue of withdrawal of excise duty exemption to contract manufacturers in the excise free zones like Baddi where a large number of pharmaceutical companies have made huge investments.
Chinks in the armour of these associations have become visible, as they have started accusing each other of upsetting the apple carts of the respective associations. The Himachal Drug Manufacturers Association (HDMA), consisting of around 400 units, is accusing the Confederation of Indian Pharmaceutical Industries (CIPI) of working against the interests of the contract manufacturers in excise free zones. "Some people are working as eyes and ears of the senior government officials to withdraw excise exemption to contract manufacturers in exempt states", HDMA president Rakesh Arora said. But he declined to name anybody.
But the CIPI, representing around 5000 small units in the country, ever since the introduction of MRP-based excise duty has been crying course for a level playing field in the country. The small manufacturers have been urging the government to implement the EAC report which recommended the withdrawal of excise exemption to contract manufacturers in exempt states. The CIPI had accused a power lobby in the HDMA of working against the implementation of EAC recommendations.
Things have come to such a pass that the manufacturers of Himachal Pradesh and Uttaranchal, numbering around 900 units, have recently formed a body namely Federation of Indian Pharma Entrepreneurs, among other things, " To fight out the negative publicity being spread about the excise free zones."
In the agenda, the association emphasises the need to fight the negative publicity being spread about the excise free zones. Though the Federation did not mention the name of the associations or groups which are spreading the campaign against the excise free zones, it is crystal clear that they are pointing towards the small scale units who are manufacturing their products outside the excise free zones.
The agenda of the Federation which met in Delhi recently included, to immediately take up the matter with Finance Ministry, Ministry of Chemicals and Petrochemicals, Health Ministry and PMO to ensure that there is no change in the present system of excise and status quo remains, and to watch the interest of manufacturers situated in excise free zone.
Though the differences among the pharma associations are subtle at this stage, things may snowball into a full-fledged battle as it is a do or die battle for both of them.