The formation of Pharmaceutical Export Promotion Council (Pharmexcil) is likely to be delayed due to a last minute snag caused by few complaints questioning the AP government's decision to sanction the corpus fund, reached the Election Commission of late.

The complaint pertained to the allotment of Rs. 3 crore from the state exchequer by Andhra Pradesh Government as corpus fund for the new council. The Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (Chemexcil) staff union and several politicians are known to have approached the election commission with request to quash the decision of the State government to allot the amount during election time. They consider the allotment as an 'election sop' and has asked the EC to take appropriate action.

While election commission is yet to consider the case the Union Commerce Ministry on their part has also approached the Commission to get a clearance to notify the formation of the new council. According to the ministry sources no notification in this regard can be expected without EC nod.

The formation of Pharmexcil by the beginning of the new financial year has thus become a remote possibility. Interestingly Chemexcil, the Council that currently represent pharmaceutical export community, is trying to consolidate its position by taking advantage of the confusion.

The council is in the process of completing its membership renewals. According to Lalit Jain, chairman, pharma panel, Chemexcil, more than 600 members have already renewed their membership. "Eighty per cent of our existing members will renew the membership by April first week", he informed.

However, Dinesh B Modi, the designated chairman of Pharmexcil said that the complaints before the EC calling the AP government decision an "election sop" is part of a malicious attempt by a group of people to delay the formation of the new council. "Since the Union commerce ministry decision to create Pharmexcil as well as the decision of the AP government to support the same were taken much earlier than the announcement of election, there is absolutely no need to take up these issues to the EC," he said.

He added that as the government has already given the in principle approval for Pharmexcil considering the need-based proposal from the industry stakeholders, these kind of short sighted allegations will only help delaying such a project.

But, the Chemexcil sources claimed that individual Chemexcil members are writing to commerce ministry declaring their continued support to Chemexcil and opposition to the new council. "Some of our members have decided to approach the court in this regard. They are likely to file complaints against the formation of the Pharmexcil in Maharashtra and AP High Court soon," they said.

According to Lalit Jain, the drug panel meeting of Chemexcil had passed a resolution on March 19 against the formation of new council. The majority of members of Panel-1 (drugs panel) are SMEs who are satisfied with the functioning of the Chemexcil, he claimed.

The commerce ministry sources also admitted the receipt of several written complaints against the formation of Pharmexcil. The ministry has however decided to toe a neutral line and is known to be maintaining safe distance from both the parties. According to them it is upto the exporting community to decide upon the council where they should enroll themselves. "The formation of Pharmexcil is not a new decision. It has been there for the last several years. It is upto the members to decide which council they belong to," the sources said.

Asked about sharing of funds between two Councils meant for the same purpose, ministry sources felt the situation would arise only after the formation of two councils and could be dealt appropriately at that time. Sanction will depend upon the proposal and the number of pharma members in respective council, they explained.

With the Election Commission coming into the picture and clear delay in the formation of Pharmexcil at sight, Chemexcil is likely to try hard to win back its pharma members. The exporting community is certainly to benefit out of this confusion as competition for council has begun to show its positive effect on the functioning of the existing council. The new council, as and when it comes, can be in the picture only it proves better.

For the record, Chemexcil has planned 48 exhibitions, seminars and foreign delegation for 2004-05. It is also known that the commerce ministry has already sanctioned Rs 11 crore worth programme of Chemexcil for the coming year. The competition is certainly to increase, hopefully in favour of pharmaceutical exports.