The health ministry took an adamant stand on the problems faced by the SSIs after implementation of the revised Schedule M norms whereas the Ministry of micro, small and medium enterprises (MSME) adopted a more lenient attitude towards them according to the report recently submitted by Najma Heptualla committee.
"The apprehensions expressed by the SSI are not realistic. On the average, 80 per cent of the Schedule M norms require change of mind-set of technical persons and observance of good practices. This does not call for any investment but required good documentation. The rest of 20 per cent require change in infrastructure facilities which may involve some financial investment," the health ministry told the panel with regard to the requirement of space and additional costs for upgradation. The ministry also claimed that the Schedule M would not be detrimental to the interests of the small scale manufacturers.
However, the MSME took a more compassionate stand on the matter. "It is indeed a fact that implementation of revised norms involves additional infrastructural requirements in most cases. One of the major requirements is that of space mainly for additional equipments like air-handling units, etc. Since a large number of small scale pharma units are located in old industrial estates or congested localities in cities, the scope of expansion of their exiting premises is very limited. Relocating in new premises will involve considerable expenditure," the MSNE ministry told the panel.
On the question of the closure of SSI units also, the health ministry's answer seemed vague saying that it was still collecting the data. "The committee found it conspicuous that two concerned ministries - health and MSME - had different views over the impact of amended Schedule M on the SSIs in pharma sector," the panel report said, while calling for a survey by the MSME Development Organisation and the DTAB to assess the impact.
The ministry also admitted that it consulted only IDMA as the representative body from the pharma industry. "All the sectors of pharma industry were consulted. Consultations were held with IDMA which also has SSIs as its members," the ministry said. On the question of giving extension to the small scale units, the MSME informed the committee that its request on behalf of the CIPI for another extension was not conceded by the ministry of health.