The All India Small Scale Pharmaceutical Manufacturers Association (AISSPMA) has protested against the government newly introduced eligibility criteria for government tenders that has prevented them from participating in the recent tenders floated by the Employees State Insurance Corporation (ESI) for supply of medicines to its hospitals. The Association complained that their request to be allowed to participate in the tenders fell on to deaf ears (the tender was closed two week back) and they were not given any assurance that their case would be considered in future also.

The AISSPMA is known to have taken up the issue with the labour minister also, but with no result.

The association has also approached the ministry of SSI with a request to exempt SSI units from all provisions of DPCO and also requirements of WHO-GMP certificate. Withdrawal of Rs 20 crore eligibility criteria from government tenders, removal of excise duty on generic medicines, problems with electricity boards, uniform sales tax or no tax on medicines, etc are some of the other major issues taken up by the association.

Informing this, AISSPMA executive secretary, S L Nasa said the government decision has been influenced by the large scale pharma companies who are having their presence in Indian generic market.

"We feel that the multinationals and large Indian companies are using this to wipe out the small-scale sector. Then we have taken up issues with the sales tax department. We feel that there should not be any sales tax on certain life saving medicines, which are consumed by the masses. The same was the case with chloroquin, an anti-malarial product which was once freed of sales tax but then reimposed. There is no uniformity in sales tax. Each state is imposing sales tax as per their convenience. There were two meetings with the state chief ministers to decide upon a uniform pattern of sales tax or make medicines inclusive of all taxes, but no solution has come up yet," he explained.

Nasa said that the industry associations of North India have agreed to join under a common platform to the national level problems of small-scale pharma companies.