Pharmabiz
 

Haryana pharma manufacturers to intensify efforts to reverse turnover criterion for participating in tenders

Ramesh Shankar, MumbaiFriday, October 22, 2010, 08:00 Hrs  [IST]

Enraged over the state health ministry's refusal to reduce the eligibility criteria for participating in drug purchase tenders for pharma companies from Rs.35 crore to the earlier level of Rs.3 crore even after the department of pharmaceuticals' advisory in this regard, the pharma manufacturers in Haryana will further intensify their efforts to get their demands met.

As a first step, a delegation of Haryana chapter of the SPIC, led by its president Vinod Gutpa, will soon meet the state chief secretary to apprise him of the problems being faced by the small and medium pharma units in the state due to the state health ministry's action in which it had some time back raised the annual turnover criterion for participating in drug purchase tenders from Rs.3 crore to Rs.35 crore for the purpose of putting an end to supply of substandard medicines by weeding out unscrupulous manufacturers from bidding for government supply.

The Haryana government's order virtually disqualified the small and medium pharma companies from participating in the tenders for supplying medicines to the state government departments. Since then, the small and medium pharma units in the state have been running from pillar to post to to reduce the eligibility criteria from Rs.35 crore to the earlier level of Rs.3 crore.

As the issue lingered on without any fruitful results, the Haryana chapter of the SPIC had sought DoP's intervention to resolve the crisis.

The DoP, on its part, had sent an advisory to Haryana chief secretary Urvashi Gulati on March 31 this year and a reminder on April 23, asking the state government to amend the eligibility criteria for participating in drug purchase tenders for pharma companies as per earlier levels on the ground that such hike in annual turnover requirement suddenly would very much harm the growth of almost all of SS1 and medium units as a criteria of more than Rs.35 crore turnover are generally fulfilled by the MNCs or large companies only.

But, the state government did not pay much heed to the DoP advisory and the eligibility criteria for participating in drug purchase tenders for pharma companies remains at Rs.35 crore.

The DoP in its advisory had countered the Haryana government's plea on quality matters and said that 40 per cent of pharmaceutical production by value in India is done by the SSI pharma companies on job-work basis on behalf of the large pharma companies or MNCs. This indicates that these SSI pharma units are capable of producing quality medicines at reasonable and competitive prices.

 
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