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MHJV objects to large Ayush cos gaining entry into Cluster Scheme meant for SSIs
Nandita Vijay, Bangalore | Monday, November 10, 2008, 08:00 Hrs  [IST]

Mahiti Hakku Jagruiti Vedike (MHJV) is objecting to the efforts of large Ayush companies trying to gain entry into the Union government's 'Cluster Scheme' project approved across the country only open to the small units.

The objection comes after the Ayurveda Pharmacy, Coimbatore, which has a tie-up with Hindustan Lever Limited (HLL) and now become one of the major promoters of the Kerala Cluster, stated JSD Pani, president, Mahiti Hakku Jagruiti Vedike.

The small units constitute a major chunk of the traditional medicine in the unorganized segment. "We want to prevent such participation by large Ayush pharma companies. By having an entry into the 'Clusters' the large Ayush companies are taking advantage of the financial weakness of the unorganized Ayush industry members who represent the small units. The large Ayush units are projecting before the Department of Aysuh that the small companies are not capable of forming industry clusters without taking these big players as members of these clusters. In fact, this has resulted in the imposition of unrealistic preconditions even for the preliminary approval of the Ayush Clusters, he added.

The unorganized sector, which mainly constitute the tiny and small units are not equipped to meet the challenges of the regulatory approvals. In a bid to provide them a fresh lease of life, the Department of Ayush, identified the weakness of the unorganized sector and ensured a one time grant offer amounting to Rs 10 crore or 60 per cent of the project cost from the Planning Commission.

Although the Planning Commission has approved grant in aid to set up the Cluster concept for the Ayush sector, the current move by the Ayush department to allow the large companies has come as a threat to the small units which are discouraged to consider opting for the Cluster Scheme. If the large units get the most out of Cluster Scheme, then it will only see the small units vanish, stated the MHJV president.

In order to prevent large units into the Cluster Scheme, MHJV has called upon RTI activists to expose such malpractice by the department of Ayush and prevent approval of the entry of large units.

The small units should now become more aggressive and capitalize on the Cluster Scheme. These units should go all out and make the best out of the Cluster Concept which will prevent the big players coming anywhere near this, pointed out Pani.

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