As per the mandate given by the Government, the small scale pharmaceutical units in India have to comply with the Schedule M norms before 1st July 2005, just a few days away.

Regulatory officials, other Government authorities and the so called doyens of Indian pharmaceutical industry have been repeatedly saying adequate time and extensions were given for the units to comply with the norms. It is the lethargy of these small unit people, their mindset and attitude is what to change. They are against modernization and progress of the country and the industry, which is in pursuit of attaining a super power status in the field of pharma world. These people are responsible for manufacturing spurious drugs, thus creating a 'bad image' for the Indian pharmaceutical industry in the global markets. Even the very existence of such units is detrimental to the interests of our country.

If these units are closed down, nothing will happen to the drug requirements of Indian people as the Indian pharma majors are capable of producing any volume required for the country. So don't worry, let them perish. The regulators and the doyens have been religiously airing such propaganda for the last few years, which force us to believe a conscious plan is being executed to perfection, to wipe out SSI pharma industry from India. First came the schedule M mandate, then the MRP based excise.

Now more than 5000 units, which invested over 7500 to 9000 crores of rupees, are on the verge of closure. More than nine lakh workers and their families dependent on these units are being thrown out to the streets for further livelihood. Why the authorities, regulators, the committed doyens and others mercilessly try to close down these units and snap means of living for nine lakh people and their workers? Why the influential industrial associations like IDMA or OPPI never bothered to speak for the cause of their fellow people, nine lakh in number, the majority in the industry? Why IDMA, which claims membership of numerous SSI units, did not bother to ask the Government to spare the poor SSIs, also their members?

Even the formation of CIPI was necessitated because the SSIs felt none of the organizations were representing their cause. CIPI was formed just a few months before the deadline to Schedule M during December 2004, and I agree this organization is still a toddler. We don't have the resources, manpower and influential people. Still, a group of committed members worked overtime to convince the authorities to get extension for one year and then another six months. None of the so-called influential industry organizations, at least out of sympathy, bothered to speak on our behalf. So the picture is clear, let these people perish, we will seize the present small pie enjoyed by them.

With just a few days away from the deadline, whether any of these critiques bothered to enquire whether the banks gave loans to the small units, at subsidized rates? Despite our repeated appeals, the Government never bothered to create a subsidized fund like the Technology Upgradation Fund Scheme, which helped textile units to modernize. Did the authorities thought about the affordability and future business prospects of small-scale units, when they brought in the mandate on Schedule M? Now hundreds of units, which borrowed funds at unaffordable interest rates to comply with the deadline, are facing closure because of the MRP based excise duty norms.

Organizations like OPPI talk about their ability to cater to the demand, whether SSIs are there or not. What about the price of their drugs? Will they supply 10 paise, 50 paise essential drugs, which at present many SSIs are supplying to the Government hospitals in the country? Will they manufacture cheap but essential drugs like folic acid and
a few vitamins in their sophisticated plants? Will they assure to supply all the
Government procurements at the same rates at which SSIs are currently supplying? As a matter of fact, these things are not going to happen, and many drugs will definitely become unaffordable to crores of poor people in India.

My question at this juncture is whether the Government, or any of the professional agencies, bothered to study or analyze the impact, like what will happen to availability and affordability of drugs in India, especially in remote villages, if thousands of SSI units are closed down?

The closure of units will also affect drug supplies in the international scene. Numerous SSI units in India are at present responsible for the supply of essential drugs to many African countries, where the pharma majors never bother to supply. Indian drug makers are able to cater to these countries because of our ability to produce and supply at cheaper prices, in comparison to countries like China. I feel once the Indian SSIs are wiped out, it will be easy for China to corner all these markets.
It is high time, rather very late, the Government study all these aspects before asking the SSIs to close down for ever.

(The author is chairman, Confederation of Indian Pharmaceutical Industries (CIPI-ssi)