Centre is considering creation of an apex body to redefine the role of the pharma public sector undertakings and to revive the in the process. The new body will also consider option of using their bulk drug facilities on a contract basis.
The move is being initiated to ensure quality medicines at reasonable prices for various health care programmes and also after assessing the track records of the sick units, it is learnt.
The use of bulk drug facilities of existing firms can be cost effective and cheaper logistics wise. Under the product patent regime, it is also planned to use PSUs as an arm of the Government in manufacturing certain patented drugs required to meet emergencies through the grant of compulsory licenses.
An apex body, under the Societies Registration Act, is planned to take the task of reorienting the role of PSUs. Besides, Rs 100-crore fund is also being mooted for assisting the pharma PSUs in drug development, patent filing and WHO pre-qualifications, sources said.
It is also being looked at if PSUs could be entrusted with the supply of subsidized drugs for those below the poverty line, thus to avoid anomalies.
There are five central PSUs and six joint venture undertakings in the sector. Except Karnataka Antibiotics and Pharmaceuticals Ltd (KAPL) and Rajasthan Drugs and Pharmaceuticals Ltd (RDPL), all other units have been in the red for a while. The Government already has approved a revival package of Hindustan Antibiotic Ltd. The Government has also given a green signal for reviving the five units of Indian Drugs and Pharmaceuticals Ltd (IDPL) in a phased manner, following the report of an expert committee.
It is viewed that at the times of emergencies like natural calamities, PSUs could do a great work to meet the needs of critical drugs as IDPL supplied six lakhs of doxycycline capsules at a short notice of 72 hours during the floods in July, 2005 in Mumbai. However, these PSUs failed to develop their own market base.
In line with the National Common Minimum Programme of the Congress-led Government that promised `special attention to the poor sections in the matter of health care', a suggestion has been forwarded to the Planning Commission also to create the apex body.
It is viewed that if a small portion of the total requirement of medicines required by various government departments including health, defence and labour departments are sourced from PSUs, the existing facilities can be fully utilized. Move is also on to prepare a list of the drugs required for these departments, besides making provisions for supply of drugs by the PSUs to the government hospitals.