The Pharmaceutical Manufacturers Association of Tamil Nadu (PMA) has approached the Chennai High Court to intervene and direct the Tamil Nadu Medical Service Corporation (TNMSC) to consider the 15 per cent price preference offered to SSI units based in Tamilnadu.

TNMSC, the nodal agency for procuring drugs and surgical items for the state run PHCs and hospitals, has been 'misinterpreting' the State Government rules related to price preference for the last few years, and the local manufacturers have not been able to get the benefits so far, allege PMA sources.

Though there were on and off the court attempts to settle the issue prevailing for the last two years, the writ field recently was to avail the benefits at least for the remaining purchases in the current year, and the court was yet to issue an order based on the writ. TNMSC's annual purchases amounts to Rs.100 to Rs.130 crores in a year, and the price preference in purchases would be a relief to the TN pharmaceutical manufacturers, most of them in the SSI sector and facing closure threat due to market conditions and other reasons, contend PMA sources.

They note that the Tamilnadu Transparency in Tenders Act 1998, and amended by the Tamilnadu Transparency in Tenders (Amendement) Act, Rule 29 (f) shows that 'the evaluation and comparison shall include fifteen percent price preference for domestic small scale industrial units and ten percent price preference for the Public Sector Undertakings of the Government in respect of products and quantities manuafactured by them'.

By this order, TNMSC should consider a Rs.100/product quote by the TN SSI manufacturer than to a Rs.114 quote by a manufacturer from outside the state, as the TN manufacturer's quote amounts to Rs.115 when adding up the price preference factor. But the state run corporation has not been following the rules, citing various loopholes in the rules and by its interpretation, and the local manufacturers were so far devoid of the benefits, said PMA sources.

They said from time to time PMA office bearers have represented on this to the concerned officials like the state Health Secretary, Small Industries Secretary, Finance Secretary, and the concerned ministers, and all had pointed to the rules already in place. However, TNMSC so far had not been considering the price preference in purchases, and PMA had no option other than to approach the court for justice, said PMA sources.