The Federation of South Indian Pharmaceutical Manufacturers' Associations has advised all its members to update their facilities to meet Schedule M norms as no further extension is possible. However, members pointed out some of the provisions with regard to area, air- handling and documentation are not clearly spelt out and therefore there is confusion. Despite that, by the end of December 2004, most of the SSIs have committed that they would improve their facilities, VS Chakravarthi, secretary of the Federation told Pharmabiz.

The Federation comprises of four associations in South India namely North Karnataka Drugs and Pharmaceutical Manufacturers' Association (Karnataka), Organisation for Pharmaceutical Manufacturers (Andhra Pradesh), The Pharmaceutical Manufacturers' Association (Tamil Nadu) and Organisation for Pharmaceutical Manufacturers' Association (Kerala).

Expert advisory to all the members in the matters of up-gradation, confirmation to Schedule M and basic documentation requirements is to be provided by the Federation. Federation has recently constituted a panel of legal experts to advise the members in this regard. In the quarterly meeting held at Hubli (Karnataka) on Sunday, the members also expressed the need for a uniform drug policy.

The members have requested the Associations to approach the Government to increase the excise exemption limit from Rs 1 crore to Rs 3 crore. At present the sales tax on medicine is varying from 8 per cent to 12 per cent. It should be brought to a uniform 4 per cent throughout India. And, the life saving drugs should be totally exempted from sales tax.

In the current competitive atmosphere, SSIs cannot remain as SSIs all the time. They have to constantly enhance the production capacity in addition to complying with Schedule M. Two incentives that need to be provided to SSIs immediately are: (1) Raise the limit for investment in plant and machinery to Rs.3 crores from Rs 1 crore. (2) Provide 20 per cent subsidy for modernization. Making available electricity at a uniform price throughout India is another key factor for the survival of SSIs.

The Members strongly felt that those SSIs who have complied with Schedule M should be privileged to supply Government at least about 50 per cent of requirements. It should be made mandatory, he added.

The Federation also felt that a wrong picture has been portrayed about SSIs as manufacturers of sub-standard and spurious drugs, which is incorrect. This can be proved by just one fact that most of the MNCs are getting their products manufactured by small pharma units.

The Federation,set up in the year 2002, has today about 600 SSIs represented by the four associations in the four southern states. Of these 600, AP has more number of units followed by Tamil Nadu.