The SME Pharma Industries Confederation (SPIC), representing a large number of SSI pharma units in the country, has urged the new Union chemicals minister MK Azhagiri to initiate a string measures to save the beleaguered small scale pharma sector in the country. A SPIC delegation recently met the minister and raised several burning issues faced by the SSI pharma sector in the country.

Led by its secretary general Jagdeep Singh, the delegation shed light on the long pending issues such as increase of SSI exemption limit from Rs 1.5 crore to Rs 5 crore and hike in abatement rate from the existing 35.5 to 60 per cent. "Raising of exemption limit and abatement rate will become essential if stimulus package is withdrawn by the government as it will restore the magnified disparity caused by anomalies of MRP-based excise between the tax-free zones and others," the delegation said.

Asking the new minister to take initiative to dilute the Schedule M implementation in the country to save the SSI units from closure, the SPIC delegation said that joint meetings are needed to sort out the issue. They also demanded to provide funds from the government for the implementation of Schedule M. "Pharmaceutical Technology Upgradation Fund (PTUF), an ambitious project of the Union chemicals ministry, has been rejected by Planning Commission but no alternatives are available for funding. The Subordinate Legislation Committee directives may be taken into consideration in this regard," the SPIC delegation said.

SPIC also sought the intervention of the new minister on the controversial issue of establishment of Central Drugs Authority (CDA). "The Health Ministry may be asked to drop the CDA Bill because MNCs are bent upon creating a single window to destroy SSIs since they cannot operate through various state governments," the delegation said.

The SPIC demanded to the minister to immediately start sourcing of medicines for Jan Aushadhis from the SMEs as was earlier planned. The conflicting notifications of NPPA may be rationalized and MAPE increased to allow production of scheduled drugs as these measures will go a long way in providing affordable medicines in the country and also safeguard survival of the SSIs in the process, it added.