Formulation companies of Tamil Nadu are in a fix as the Tamil Nadu Medical Service Commission (TNMSC) has not received the government order requiring preferential purchase from them. In the absence of the government order, TNMSC has to ignore the state based companies in the latest tender bid offers.

As per the GO 2001, the TNMSC was to lift off 15 per cent of the total requirements from state based formulation companies. Also the GO bestows considerable due on state based companies so that the latter also has the advantage of the price preference. But, in the latest bid, the TNMSC has not indicated about purchase preference citing non receipt of the latest government order.

The Pharmaceutical Manufacturers Association of Tamil Nadu (PMA) has taken up the matter with the Health Secretary of the state who in turn has directed the Finance Ministry to look into the issue.

Such a GO also means revenue loss for the state government since the TNMSC would have to lift stocks of medicines from state based companies even if the latter quotes a little higher price than their counterparts from the rest of the country. Hence the Finance Ministry has also been notified in the current imbroglio.

Small companies have been clearly taken aback by the stand of TNMSC since the latter in the latest bid, has awarded contract for supplies of essential drugs and other pharmaceutical products to companies from outside the state in deviation from the GO. The TNMSC bids are the main source of revenue for majority of small companies in the state.

The small companies are not sure whether the TNMSC has really not received the GO or whether the state government is choosing to ignore them since it cannot afford to have revenue loss in the present scenario of financial mire. TNMSC officials when contacted claim the corporation has not received any such GO.

The state health department when contacted by Pharmabiz.com refused to speak on the issue except for claiming that it would look into the issue at the earliest.