After toying with the idea for several years, the department of pharmaceuticals (DoP) has finally decided to source generic drugs from private sector manufacturers and initiated the steps in this regard, as part of the new attempt to revive the Jan Aushadhi programme with a new business plan.

However, the move which was keenly awaited by the small and medium scale units for long, will not do any good to the very small generic manufacturers as the government will buy medicines from firms which have an average annual turnover of Rs.10 crores in the last three years.

Bureau of Pharma Public Sector Undertakings of India (BPPI) which is managing the programme has already invited tenders for supply of drugs with a list of 361 drugs, thus also expanding the bracket of drugs to be sold through the generic outlets in accordance with the new business plan.

“Tenderer shall be a manufacturer having valid own manufacturing unit duly licensed by licensing authorities or direct importer holding valid import license. Distributors/suppliers/agents/loan licensees are not eligible to participate in the tenders,” said the tender notice.

“Average Annual turnover in the last three years i.e. 2010-2011, 2011-2012 and 2012-2013 shall not be less than Rs.10 crore and turnover for the year 2012-2013 should also be not less than Rs.10 crore,” the notice said.

The proposal for purchasing drugs from the private sector was expected to happen immediately after the launch of the programme in November, 2008. In fact, the DoP had invited expression of interest from the companies in December 2008 and as many as 76 firms including some major companies had responded to it. But later the DoP developed cold feet and finally dropped the idea of sourcing medicines from private companies on the plea that the expressions of interest were found to be not meeting all requisite criteria.

Ever since there has been increasing amount of pressure on the DoP and the Parliamentary panel attached to the Chemical Ministry time and again recommended the same. Besides, the industry associations especially those representing the SME sector have been demanding the same.

“Tenderer should at least have three years Market Standing as a manufacturer/importer for each drug quoted in the tender as manufacturer/importer. Tenderer should have obtained permission to manufacture the item/drug quoted (as per specifications laid down in relevant pharmacopoeia) in the tender from the competent authority. The imported product will be accepted in generic/brand name with BPPI Logogram affixed/printed. Tender should not be submitted for the product(s) for which the firm/company has been blacklisted by any State Government/Central Government/its drug procurement agencies due to quality failure of the drugs supplied,” according to the eligibility criteria specified.