Goa bites the pharma pill

The Goa government after the much-publicised campaign to attract the IT sector is now eyeing pharma industries. "We want to create a pharma hub in the state," said industries minister Luizinho Faleiro.

But the condition of small-scale industries which have already ventured into the pharma sector in the state is pathetic.

Flooding of spurious drugs from states such as Karnataka, UP, Bihar and Rajasthan has dogged the pharma business in the state for a long time. But, neither the excise department nor the food and drugs administration has been able to curb this trade. This has directly affected small industries. According to estimates, the spurious drugs trade in the country stands at around Rs 8,000 crore.

Of the total 54 pharma units in the state, 26 are small-scale units. Total investment in this sector in the form of plant and machinery has been pegged at Rs 350 crore with turnover at Rs 2,000 crore with an annual growth rate of 18-20 per cent.

Almost 50 per cent of the pharma units in the state are small-scale units with none of them into exports. Though, the state exports drugs worth Rs 200 crore annually.

The pharma companies also contribute substantially towards employment generation. Nearly 1,500 technical and 3,500 non-technical staff is employed in these units. Besides, 4,000 workers are employed on contract basis.

Nitin Kunkolienkar, president of the Goa Chamber of Commerce and Industries (GCCI), said, "Schedule M of the Drugs Act makes it mandatory for every unit to have own testing laboratory. The schedule, which was hitherto neglected, is being looked into seriously by the government. This has added to the financial burden of these units."

Kunkolienkar feels that soft loan in the form of subsidies or low interest should be given to these units. But, the government seems to be more interested in wooing newer industries rather than servicing the existing ones, he added.

While, nearly 15-20 per cent less production cost in the state may be a major attraction for pharma units, but problems such as those related with exports may prove detrimental.

"Customs and central excise officials have to certify the goods to be exported. In Goa, you have to fly down the official every time you require them at your plant. There is no permanent officer here," said a pharma unit owner.

The pharma units also rue the absence of waste disposal units.

In absence of a plant to treat pharma waste, they have to work out various ways to dispose it off. The units had suggested that a common disposal facility be set up in the state. But, the government is yet to act upon this suggestion.