A recent email from the Department of Pharmaceuticals (DoP) has allegedly upset micro, small, and medium enterprises by asserting that small drugmakers are “not the most reputable ones”, News18 has learnt. And an MSME group linked to the Rashtriya Swayamsevak Sangh has taken offence over the communication, which allegedly discriminates between the big pharma companies and medium and small drugmakers. The group has decided to take up the “insult” with the union health minister.
“Small ho to reputation nahi hai (Those who are small don’t have a reputation)?” Rajesh Gupta, India head of Laghu Udyog Bharati, which is a Rashtriya Swayamsevak Sangh-affiliated body focused on micro, small and medium enterprises (MSMEs), told News18.
“In this case, the government of India should shut down the Ministry of MSME because the industry has no reputation, according to the DoP communication,” said Gupta, who is also the state president of the Himachal Drug Manufacturers Association.
The email that started it
The controversy was triggered by an email sent to the pharmaceutical industry on June 19 by the DoP. The communication, seen by News18, was aimed at pushing the participation of drugmakers in the Revamped Pharmaceuticals Technology Upgradation Assistance Scheme (RPTUAS).
The scheme aims to upgrade the technological capabilities of the pharmaceutical industry in alignment with global standards. However, it has received a dull response from the industry, so far.
“Only 62 registrations have been done so far and only 14 applications have been received,” said the DoP in an email communication to the industry while adding that “most of the companies who have applied under the RPTUAS sub-scheme are small pharma companies which are not the most reputable ones.”
The mail further said that DoP held a review meeting on the scheme on June 19 and “desired to have a list of big reputable pharma companies for encouraging them to apply under the RPTUAS sub-scheme.”
News18 attempted to contact Arunish Chawla, the secretary of the DoP, but he did not respond to our text messages requesting a comment on the matter. The story will be updated if he responds later.
‘Sentiments of MSME industry hurt’
In response to the email, Gupta expressed offence, stating that the DoP’s remark has hurt the sentiments of the entire MSME industry. News18 has seen the reply by Gupta to the DoP’s email.
“Received your mail about the RPTUAS scheme and the version that small companies are not reputed companies. It means a lot and hurts the entire MSME industry segment,” Gupta replied to the mail adding that it seems the DoP believes that small companies are not reputable, and then instead of giving Rs 1 crore subsidy to MSME, they should only support large corporations.
“Your email is fully condemnable and against PM Modi’s initiative to promote MSME,” Gupta wrote while adding that he will take up this issue with union health minister JP Nadda.
‘Reputed large companies recalling medicines’
Highlighting the issue of quality concerns in the global market, Gupta wrote that “many reputed large corporates are regularly recalling the batches from the US market” and still they are considered more reputable than MSMEs.
The mail was sent to around 20 industry representatives including trade associations the Federation of Indian Chambers of Commerce & Industry (FICCI) and the Confederation of Indian Industry (CII). It is also marked to officials from Invest India, Small Industries Development Bank of India (SIDBI), along with industry representative groups including the Himachal Drug Manufacturers Association.
Gupta told News18 that his association has worked very closely with the government while forming the scheme.
He said that while his industry is with the government on public health issues and the members have been following every instruction, such discrimination between the big and small pharma companies is not warranted.
“Is this the reason due to which the government is conducting risk-based inspections and trying to shut down pharmaceutical MSMEs is also a big question,” he said. “You must remember that every MSME owner has put something at stake while he runs his company. Either they have their home on a mortgage or have taken bank loans — hence, we must be fair to those who put their blood and sweat into this industry.”
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