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SSIs pondering over survival strategies as closure threat looms large after Budget
Our Bureau, Chennai | Saturday, March 5, 2005, 08:00 Hrs  [IST]

With the Government deciding not to announce any further sops to SSIs in the Union Budget, the small scale pharmaceutical manufacturers are planning to work out strategies to face the crisis and fight for their survival.

The Confederation of Indian Pharmaceutical Industries (CIPI-ssi), the apex organization of state level pharmaceutical associations, has directed the state associations to analyze the budget impact and give their feedback on what to do next, according to T S Jaishankar, its chairman. The Federation of South Indian Pharmaceutical Manufacturers Association (FOSIPMA) office bearers are meeting this weekend to discuss future strategies.

Further, CIPI is now trying to conduct a series of protests in Delhi, on March 17 and 18. While the first day would witness a protest rally and convention attended by some of the sympathizers like A B Bardhan, the CPI general secretary and some MPs, March 18 will have a hunger strike by SSIs. In fact, CIPI had planned to conduct these programmes even before the Budget. Considering the assurances on reducing excising duty to 8 per cent and increasing the turnover limit to Rs 3 crore, the association had decided to wait for the presentation of the budget, according to Jaishankar.

The IDMA SSI committee is also meeting this week to analyze the situation. Talking to Pharmabiz on the eve of the Budget, S V Veeraamani, the IDMA vice president and chairman of the SSI Committee had hinted the association would think of agitation including major awareness creation among public on the aftermaths of MRP based excise, if the budget fails to consider the industry views.

Jaishankar said, CIPI would further 'probe why even the top-level recommendations' were not considered by the finance minister. "Either someone has consciously tried to prevent sops for SSIs, or the message could not have reached the FM properly. The top officials of the ministries of SSI, Chemicals and Fertilizers and the chairman of the Central Board of Customs and Central Excise had recommended reduction in excise duty to 8 per cent. They still claim they had recommended and are shocked to know it was not considered. So thorough review should be made on what happened," opines Jaishankar.

According to CIPI, at least 4500 units are facing imminent closure, and many units in states like Maharashtra have already downed their shutters.

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