Kala Amb/ Baddi: Himachal Pradesh known as hub for pharmaceutical manufacturing industries have 618 units which include nearly 90% micro and small units involved in manufacturing Pharmaceuticals products holding nearly 35% share in the country. The Financial World correspondent had a talk with the entrepreneurs of large number of pharmaceuticals producing units at Kala Amb and Baddi area near Chandigarh who told that the industries in Himachal need to inject energy in their arms since most of the units especially micro and small manufacturers in the area are on the verge of closure in the absence of government support blaming hostile government policies act as hurdles and with no cure coming by sickness grips the industry. The entrepreneurs in this sector feel neglected and now look forward to the coming budget to remain alive.
The General Secretary of Himachal Pharmaceutical Industries Association ManeeshThakur told that micro and small pharmaceutical industrial units in the state are facing severe financial crisis and over 50% of these have become sick and few have been closed down unable to meet tough competition among manufacturers, unable to get raw material and some other reasons. He said, most of the units were set up in the state due to tax rebates in Himachal state which have now been withdrawn by the government after GST was introduced. Thakur said, among other major reasons for the sickness of pharmaceutical industry in the state, especially in Kala Amb and Baddi area include shortage as well as costly labour, less amenities available to industry, no connectivity with any highway, non-availability of transport in few areas including Kala Amb and Baddi having maximum number of pharmaceutical manufacturing units, tough competition among manufactures, no research and development centre related to industry in the area and above all lack of support by the government.
Thakur said, in order to bring life in pharma industry in the area facing severe sickness the industry needs government to provide loans up to Rs 10 crore at subsidized rate of 3% interest on which 30% subsidy by the government should be permissible. He demanded relief in NGT rules applicable for pharma industry and told that government should get installed common treatment plant for the waste water containing antibiotic contents and other chemicals coming out of pharmaceutical units and also rebate in GST.
Many micro and small pharmaceutical manufacturers told that they were doing well till 1995 when Drug Price Control Act (DPCA) was introduced accusing government policies favoring big manufacturers and MNCs after the Act. They said, DPCA was enacted with the purpose of reducing prices of drugs but in its present form it started favoring big manufacturers only. According to entrepreneurs in pharma sector in Himachal state large number of units were set up in Himachal state in order to avail tax rebates in taxes and to meet price competition in the market, which benefited only big houses.
Most of the pharma manufacturers at Kala Amb and Baddi complained that government is doing nothing to help small entrepreneurs unable to control growing freight, electricity tariff and overhead expenses in the area as such survival for micro and small manufacturers in pharma sector has become difficult. They further said that there are several other factors including excessive interference of government machinery, non-availability of raw material, stiff competition, customers preference for products manufactured by MNCs, lack of automation and financial infrastructure are the main reasons for stagnation of pharma industry not only in Himachal but also in Uttaranchal, Haryana and Punjab states. According to few pharmaceutical manufacturers, to deal with the unprecedented competition a major thrust in research and development is needed. He suggested the drug administrative department officers should work as guiding officers and not as fault finding officers.
