The Federation of Medical and Sales Representatives' Associations of India (FMRAI) has demanded the central government to institute an inquiry into the circumstances under which the Union health ministry has closed down the three PSU vaccine institutes, CRI Kasauli, PII Coonoor and BCGVL Chennai, which have been producing vaccines for the country's universal immunisation programme and for other purposes for several decades. The Federation will soon launch a nationwide campaign against the closure of these vaccine units.

Citing media reports, the Federation in its letter to the central government said that there are allegations that the decision to close down the three PSUs was taken in the backdrop of the health ministry's efforts to promote private vaccine manufacturers like Biological E Ltd and Green Signal Bio Pharma. The health ministry was engaged in clandestinely promoting Green Signal Bio Pharma whose owner Sundaraparipoornan is reported to be a close associate of Union health Minister Dr Anbumani Ramadoss and a former PMK activist. The ministry used the services of Dr N Elangeshwaran, the then director of two PSUs (BCGVL and PII) in this regard.

The FMRAI letter said that there are reports that the health ministry also entered into an agreement with Green Signal Bio Pharma, a new entrant in vaccine manufacturing. BCG Vaccine Lab, Chennai, is believed to have stood guarantor for a Rs.14 crore bank loan received by Green Signal Bio Pharma. The latter was given a vaccine manufacturing license on December, 2007, barely two weeks before the closure of the 3 PSUs.

Questioning the closure these units on the quality grounds, FMRAI said that the WHO report was first published in 2001. The WHO had also offered assistance for upgrading the technology used by these PSUs. What prevented the health ministry from taking up the WHO's offer or in acting to remedy the situation on its own for seven long years? Similarly, changes in Schedule M in the Drugs and Cosmetics Act were notified in 2001. Why did the Government not act for seven years to ensure that its own institutes were upgraded to conform to norms set by it? it asked.

Under these circumstances, the allegations should be probed by an impartial authority, and if proved correct, stringent action be taken against all those who are involved as the closure of the PSUs involves not just a loss to the national exchequer, but more importantly, constitutes a national loss. These are units which have serviced the needs of the public health sector for decades, and their closure makes the country more vulnerable to health emergencies.

The FMRAI also demanded that these PSUs should be upgraded to conform to notified GMP norms, and all steps to be taken to ensure the commencement of production of vaccines in these units. At the same time the government should not victimise employees protesting against the closure, and all their jobs should be secured.