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Keeping drug firms in Telangana needs incentives

Telangana needs to ensure a favourable environment for drug firms to prevent their migration

Hyderabad: With 412 pharma companies and 173 bulk drug companies in Telangana, the T- Pharmaceutical Association has asked the health minister, Dr T. Rajaiah, to come out with a comprehensive plan to enhance the sector if the government does not want the companies to be lured by other states.

The demand comes in the wake of the neighbouring state of Andhra Pradesh offering innumerable benefits to investors seeking to set up enterprises there.

While in 2005 there were 1,550 companies in united Andhra Pradesh, most of them shifted to Uttarakhand due to tax incentives, rebates and exemptions offered by that state’s government.

To ensure that there is not a repeat of 2005, T-Pharma Association’s president Sanjay Reddy approached the new government, asking it to look into the existing issues of the pharma sector and also offer the best so that the existing companies stay put.

Mr Reddy said, “Telangana stands third in the country with a 5.5 per cent contribution in the pharmacy sector. This contribution must not come down, but must be further enhanced. For this the government must understand the requirements of the industry and provide the benefits.”

The association has put up several demands among which tax incentives, exemptions and also increasing public-private partnerships are stressed upon.

Another issue that it has raised is the re-organisation of the Pollution Control Board.

A senior official of the Bulk Drug Association said, “The existing structure of the Pollution Board is not satisfactory. Pollution is a major issue, raised time and again, but while setting up treatment plants, there is little help from the government departments. The cost of setting up the plant is '20 lakh. When such heavy expenses are incurred, the Board must then act as an enforcement agency and not harass those who are following the law.”

The problem of pollution is a major concern as many of manufacturers do not follow the required standards. For over 173 companies, there are only six effluent treatment plants.

These are the concerns raised by the government department as land, water and also air is affected when good industrial practices are flouted.

For this reason, the state government has to check the pros and cons before giving in to the demands.

While new drugs are the need of the hour, good manufacturing practices are also required to ensure that the pollutants do not harm natural resources.

( Source : dc )
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