The small-scale drug makers of the country have offered free medicines to the extent of 0.5 per cent of their total turnover for Below Poverty Line (BPL) families. The decision has been conveyed to the Union Chemicals and Fertilizers ministry on the eve of the third draft policy review committee meeting scheduled in Mumbai on September 20, it is learnt.

According to Confederation of Indian Pharmaceutical Industries SSI (CIPI), the apex body of SSI drugs makers of the country, all its state constituent associations have accepted the CIPI response. SSIs are known to contribute 40 per cent of the national domestic drug sales worth Rs 30,000 crores.

The CIPI claimed that SSIs were first to respond to the appeal made by the Chemicals Ministry to provide free medicines to BPL families.

"Satwant Reddy, Secretary, Department of Chemicals, had emphasized the importance of Public Private Partnership for BPL families which required a sum of Rs 2500 crores. While the Large industry is still in consultation on the issue, the SSI has already offered to donate free medicines. Each SSI Unit will provide medicines equal to 0.5 per cent of it turnover at ex-factory prices. Going by the fact that SSI contribute about 40 per cent to the National produce of Rs.30,000 crores, it amounts to a sizable chunk" a CIPI spokesman stated.

According to CIPI, the large drug makers and the drug manufacturers from excise free zones will be in a better position to make contributions to the free drug supply scheme." It has been revealed that the percentage overheads of large industry are much lower than SSI Units in view of mechanization and high turnover. They can easily afford 1per cent and Units in Tax Holiday states can easily afford 2 per cent as their massive Tax savings contribute to profits" He opined.