The work for setting up a cluster for bulk drug manufacturers of TTC industrial area in Navi Mumbai is being delayed indefinitely due to the lukewarm interest among the members, feel members from Thane-Belapur Industries Association, one among the teams behind the project.

The bulk drugs cluster at Thane-Belapur belt is one among the 21 clusters selected for development by the Union ministry for SSIs and office of the development commissioner (SSI). There are 34 bulk drug-manufacturing units in TTC industrial area.

K Jayadevan, joint secretary, TBIA told Pharmabiz, "We hope that by setting up the cluster, the scattered bulk drug units can be brought under a single roof so as to work with unity. We are creating awareness in them. But unfortunately, they are not seems to heed our plans as they want to continue the old customs."

Presently, most of the bulk drugs are being sold through agents, who make fat profits by exporting these to outside countries. We aim at avoiding such a custom and make available the manufacturer his maximum profits. It can be done only through finding out the clients and better markets where the necessity is more for each of the drugs. Without a unity among the scattered units, these initiatives are not possible, he added.

"Earlier, the numbers of the manufacturers who attend the seminars were very few. But there is an improvement in the number nowadays," says Jayadevan.

On December 30, 2003, Thane-Belapur Industries Association, along with Small Industries Service Institute (SISI), Maharashtra FDA, SIDBI, convened first meeting regarding cluster development in Navi Mumbai. During the meeting, they had planned to prepare a diagnostic study report based on the information collected from all the cluster units, prepare action plan, implement action plan etc. As per the action plan, they have conducted Seminars on Schedule M, export procedures, IPR, financial assistance etc.

Joshi of Paras Organics, one of the bulk drug manufacturers, says, "What went wrong is the mere lack of awareness among the manufacturers. They agree that a major chunk of profit is captured by the middle agents, but still are not willing to accept the new strategies. Nowadays, in the world of globalisation, there are innumerable opportunities abroad. So for finding out the opportunities, united move is an essential, he added.

However, Kedare of Small Industries Service Institute (SISI), working as a link between government and TBIA in cluster development, is denying the allegations. "It is a project of three years. In the past two years, we have conducted the diagnostic studies and based on the study we are doing the action plans. We could find out the major problem that is faced by the units is complying with Schedule M. As per our instructions and advice, around 15 manufacturing units are trying to comply with the Schedule M norms. 3 units have already approached ministry for credit link capital subsidy scheme for technology upgradation. One unit has received Rs 75,000 under the reimbursement scheme allowed for cluster. One unit has bagged the ISO certification."

As per our requirement, 3 consultants were approached to help units to comply with the norms FDA insists. We could keep away manufacturers' fear that interference of government may create problems to them. We could aware them about the importance of IPR and Schedule M, he added.

N Naik, director, SISI, Mumbai, one among the kingpins behind the cluster project, denies that there is a delay in the project. He says that the activities are in full swing for setting up the cluster. He added that the seminars conducted by them were effective and the manufacturers were responding well to the initiative. He hopes the project would be taken off soon. Sources told Pharmabiz that the erstwhile helmsmen at SISI were not keen on the project and the delay was happened due to their lukewarm attitude towards the project.