The SSI units that managed to comply with the revised Schedule M norms to retain their manufacturing license may soon have additional hurdles before they can participate in government tenders. The Union Ministry of Chemicals and Fertilizers is known to be working on a procedure that makes quality assurance an equally important component of the tender system. Along with the LI pricing system (quoting lowest prices), the ministry may recommend a set of quality testing parameters for participating in government supplies.

The new system, once introduced would act as another barrier for SSIs who are also known to be weeded out from several tenders due to the turnover criteria that are followed by central agencies.

The Prime Minister's Task Force headed by Dr Pronab Sen had taken note of this aspect. "In order to determine the reasonableness of the ceiling prices fixed as above, the L1 prices quoted in bulk procurement by Government and other designated agencies may be examined for use, provided that the system of bulk procurement meets certain minimum prescribed standards," Dr Sen suggested.

The committee had stated that the system of procurement in the Central Government must essentially ensure that quality drugs are purchased and that drugs have active ingredients at the maximum level throughout the shelf life period of the drug. According to the report, the main guiding factors for procurement of bulk purchase of medicines by various government agencies were (a) procurement preferably in the form of generic drugs and (b) procurement only from pre-qualified manufacturers of drugs.