Deeply dissatisfied over the working of the present small scale pharma industry (SSI) leaders in the country, a section of the small scale manufacturers of non-exempt states is coming together to form a new association called SME Pharma Industries Confederation (SPIC).

According to sources, the new association will take shape very shortly. The SSI associations of Maharashtra, Goa, Surendra Nagar, Aurangabad, Punjab, Haryana, etc are expected to join hands to protect the interests of thousands of small scale pharmaceutical manufacturers in the country.

Sources said that resentment has been brewing among the small scale pharma manufacturers as they feel let down by the present SSI leaders who were found wanting even on burning issues like excise reduction from 16 to 8 per cent, raising of SSI investment limit from the existing Rs 1.5 crore to Rs 5 crore and hike in abatement rate from the existing 42.5 per cent to 60 per cent.

There is a feeling among a section of the SSIs that the present SSI leaders did not do anything meaningful for the benefit of thousands of SSI units in the country who are trying to survive due to the several anti-SSI policies of the government during the last some years. Major factors that have adversely affected the pharma SSIs are introduction of revised Schedule M, MRP-based excise and tax holiday to Uttaranchal, Himachal, J&K and Sikkim.

This section of SSI activists were also upset over the fact major demands of the SSIs were overlooked by the industry associations when they made the presentation before the Group of Ministers (GoM) led by Sharad Pawar on September 12.

The GoM on national pharmaceutical policy had its second meeting on September 12 in which the GoM had invited all the major pharmaceutical associations including IPA, IDMA and the CIPI to air their views on the policy. Though the CIPI, which represents around 5000 small pharma units in the country, was also invited by the GoM to present its views in the meeting on September 12, the small scale units feel let down by the collective presentation made by the industry associations as the presentation did not mention about the SSIs' major demands.