CIPI offers free drugs for BPL families
Madhvi Sally

THE Confederation of Indian Pharma Industry (Small Scale), the apex body of various smallscale pharmaceutical associations in the state, has offered free medicines worth Rs 2,500 crore for the below poverty line (BPL) families in the country . As per the arrangement, each SSI unit will provide medicines equal to 0.5% of its turnover at ex-factory prices. Since SSIs contribute about 40% to the national produce of Rs 30,000 crore, it amounts to a sizeable chunk. The association has 8,000-odd manufacturers as partners.

Speaking to ET, CIPI chairman TS Jaishankar said, "The contribution by the association is our commitment for the betterment of society . For a family below a per capita income of Rs 650 per month, price reduction of medicines will not solve the problem." The number of small-scale manufacturers in the country is around 8,000, says Mr Jaishankar.

The public private partnership for BPL families was a result of a series of meeting held earlier this month with the chemicals and petrochem secretary Satwant Reddy, industry representatives and chemicals and fertilisers ministry. Mr Jaishankar added that the government will decide how to disburse the medicines to the affected BPL families. "The programme will be launched by the first week of January 2007," he said. The number of BPL families is 26% or 260 million. The number in rural areas is 193 million with the rest in urban areas. A CIPI member in Chandigarh said though the overheads of large industry are much lower than SSI units, the industry is still in consultation on the issue. "They can afford 1% and manufacturing units in tax holiday states can afford 2%, as their massive tax savings contribute to profits," he said.

Source: www.economictimes.indiatimes.com
ChandigarhEdition
20th September 2006

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