A preferred procurement policy is being planned for pharmaceutical PSUs involved in bulk procurement. The department of chemicals and petrochemicals is preparing a Cabinet note on this.
A list of 102 drugs, which these PSUs produce and are procured on a preferential basis, has been prepared by the department.
"The bulk procurement programme of the central and state governments is worth Rs 3,500 crore (Rs 35 billion). With the preferred procurement clause, the turnover of these PSUs can touch at least Rs 250-300 crore (Rs 2.5-3 billion)," said a ministry official. At present, their total turnover is around Rs 140 crore (Rs 1.4 billion).
The list is expected to reach the Cabinet this month and the main beneficiaries will be Hindustan Antibiotics Ltd, Indian Drug & Pharmaceuticals Ltd and Bengal Chemicals & Pharmaceuticals Ltd. The list mainly consists of antibiotics, gastric medicines, vitamins, syrups and injectible liquids.
"The prices of the drugs produced by these companies are much less and will considerably ease the burden on the exchequer. Secondly, it will provide them with a consistent revenue source. Also, the prices of these drugs will serve as a benchmark for the National Pharmaceutical Pricing Authority for its cost-based price studies," explained the official.
The list is a part of the government's larger revival plan for the pharma PSUs whose functioning is considered critical in times of a medical emergency.