Govt to look into denial of export credit to SSIs, export lending to pharma exceeds 30 % in 2006
Joseph Alexander, New Delhi

The export credit to the pharmaceutical industry has increased by 30 per cent to touch Rs 16,200 crore during the year of 2006 and the Government has promised to look into any complaint if a bank denies export credit `unreasonably' to companies, especially to small scale pharmaceutical firms.

Amid widespread allegations by small players that they faced apathy from the banks in securing export credits, the government maintained that there was no ceiling on the same and no complaint received in this regard.

``Any application of export credit, if it is under Rs 25,000 should be disposed of within a fortnight and above Rs 25,000 within eight weeks to nine weeks,'' it was made clear.

The Government said it was checked with concerned agencies like Reserve Bank of India, Pharmaceutical Export Promotion Council, the Indian Drugs Manufacturers Association and the Ministry of Small Scale Industry about the issue and no complaint was reportedly received by them in this regard.

``Every case where export credit application is rejected has to be brought to the notice of the chief executive of the bank and export is an area where we have instructed banks to be very liberal. If there is any specific case, we will look into it,'' Finance Minister P Chidambaram assured the House recently.

Meanwhile, the export credits to the pharma industry, including small and big firms, increased by 30 per cent to Rs 16200 crore at the end of March 2006 from Rs 12,682 crore at the end of March 2005.

The Government also said that the export by the small scale pharma sector was not likely to grow at a `very fast pace' given the very strict regulations existing in foreign countries. The small scale sector mainly targeted the domestic market as very few of them could meet the stringent requirements abroad.

Source: http://www.pharmabiz.com
21st March 2007

This Site is developed and maintained by Prashant H. Pandya
Site updated on Sunday, March 25, 2007 7:50 PM
© Confederation of Indian Pharmaceutical Industry (ssi)