The pharma industry's attempt to get the capital investment ceiling of small scale sector drug units from Rs. one crore to Rs. 5 crore may find opposition within themselves as Confederation of Indian Pharmaceutical Industries (CIPI), the newly formed apex body of all state level SSI drug units is not in favour of such a move. The CIPI feels that the increase of capital investment ceiling would help many of the medium scale industries to avail the benefits enjoyed by the SSI sector and thereby harm the business interests of the SSIs.

Indian Drugs Manufacturers Association (IDMA), the most representative drug industry association in the country, has been lobbying for an increase in the investment ceiling for some time now. While many of the member companies of IDMA would find this useful, the tiny and small-scale sector feels that they can operate within the current limit itself.

The drug industry had pointed out that none of the SSI companies can remain with the one crore investment limit and comply with all requirements of the revised Schedule M that is to come in force by year end.

According to CIPI leadership, the capital investment covers only the machinery used in the production. "The GMP requirements as per the new Schedule M do not call for major investment in machinery. It talks about the other auxiliary facilities that are required. Since this does not come under capital investment, SSIs would not have any trouble in doing so," they said.

"Only the machinery used in the production is covered under this one crore. If we raise this investment cap, all medium scale industries will jump into the SSI bracket and share the benefits meant for the tiny sector. That will be against the interests of the majority of our members. Quality control investment is not included in this ceiling. So we are not interested in any increase," they explained.

However, CIPI do not intend to oppose the IDMA move at this stage. "We are working together to solve many common issues before the industry. At this stage, we will not campaign against IDMA representations. CIPI will neither support the campaign," they said.

The Central Government had during last year raised the SSI investment ceiling for 10 bulk drugs from Rs 1 crore to Rs 5 crore. The drugs are paracetamol, para amino phenol, pyrazolones, benzyl benzoate, niacinamide, methyl parabens and sodium salt, ethyl parabens and sodium salt, propyl parabens and sodium salt, calcium gluconate and aluminium hydroxide gel. The move was intended at enhancing the competitiveness of SSIs both in the domestic and export markets through facilitating technological up gradation and adoption of international quality standards. The industry has been asking to extend this to all drugs manufactured by the SSI sector.