TN pharma industry seeks 15% price preference for local suppliers in public tenders

Chennai, June 14, 2021:

The Tamil Nadu chapter of the Indian Drug Manufacturers Association (TN IDMA) and the association of pharma MSME units (TN PMA) are bracing themselves for seeking 15% price preference for the local suppliers while participating in public tenders.

This benefit for the pharmaceutical manufacturers was discontinued in 2012 and from the year onwards the industry association has been demanding to the government to revive it. Since nothing has been done positively on their demand so far, the leaders of the industry are now preparing to submit a memorandum to the chief minister and to the state chief secretary with a request to consider the demand once again for the growth of the pharma MSMEs in the state.

“The Tamil Nadu Medical Services Corporation Ltd (TN MSCL) had done away with the provision of price preference nine years ago which the industry now wants the new government to revive to boost the state’s pharmaceutical manufacturing sector”, doyens of the TN pharma industry told Pharmabiz while drafting a memorandum to the government.

The price preference of 15% is a mandatory marketing assistance to be given to the MSME units under the National Small Industries Corporation (NSIC) scheme.

Talking to Pharmabiz, the chairman of TN IDMA, J Jayaseelan said when the TNMSCL was started functioning in 2001 the local manufacturers in the state received preference in the purchase by the corporation at a rate of 15% in the bidding. During the benefit period several domestic players, most of them are MSME units, participated in the bidding and supplied to the government’s requirements. This scheme continued for a long period but in 2012 the corporation stopped in extending the benefit to the local manufacturers.

Since it has ceased to exist now, very few number of manufacturing companies from Tamil Nadu are participating in the tender process. If TNMSCL revives the scheme, most of the local companies will participate in the bidding and companies from other states will establish their manufacturing plants in Tamil Nadu, Jayaseelan said.

Fully trusting the new government for achieving many things for the growth of the industry, Jayaseelan said TN IDMA will seek the attention of the government to the proposed centrally sponsored project, National Institute of Pharmaceutical Education and Research (NIPER) in Madurai. The project is envisaged to develop the R&D wing in the pharma sector which lags behind in research areas. He states one fact, which he wants to take up with the government, that although Tamil Nadu performs well in healthcare sector, it has not progressed that much in the pharmaceutical sector. He said, if the government lends a helping hand to the TN pharmaceutical industry, it will make the industry globally competitive. This area of development has to be taken to the government and TN IDMA is going to apprise the chief minister about the requirements for the overall development of the industry.

Another demand of the industry to be highlighted in the representation to the government is that on the lines of the biotechnology policy, which was already announced in the state, the industry wants an exclusive ‘pharma policy’ for Tamil Nadu. The leaders of the industry hope that a new pharma policy will help make the state as a hub of Indian pharmaceutical industry with achievements in formulation industry, bulk drug industry, neutraceuticals and allied sectors.

The team of industry leaders visited the CM at his office to hand over the relief fund included SV Veeramani, chairman of TN PWT, MD Varadarajan, president of TN PMA, J Jayaseelan, chairman of TN IDMA, and T Satheesh, secretary of TN IDMA.

However, last week they called on the CM at his office and handed over a cheque of Rs 50 lakh to the Chief Minister’s Covid Relief Fund. The amount was shared by TN IDMA, TN PMA and TN Pharmaceutical Welfare Trust, a charity organisation under the TN IDMA. Pharmabiz