From seeking relief in implementing schedule M guidelines and increasing investment limit for small scale industries from the existing Rs 50 lakh (Rs 5 million) to Rs 5 crore (Rs 50 million) to providing technology upgradation fund at lower interest rates, the pharmaceutical industry has listed a set of demands to the state government.

These demands were made at the inauguration of the new office of the Gujarat state branch of the Indian Drug Manufacturers Association on Friday.

The new office has been named after Zydus Cadila group founder Ramanbhai Patel as the premises have been donated by the group to IDMA.

In his address, Kamlesh Udani, chairman of IDMA's Gujarat unit, said that a co-operative movement has started in the pharma industry, too, in tie-up with the state's Food and Drug Control Administration.

Udani said that under schedule M of the Drugs and Cosmetics Act 1940, SSIs are required to invest between Rs 30-40 lakh (Rs 3-4 million) to upgrade infrastructure.

"It will be helpful if these units are given relief and the date is extended by three years from 2005 so that they can comply with the regulations," he said.

The pharmaceutical industry has asked the state government to take up the matter with the Central government to extend the SSI investment from the existing Rs 50 lakh to Rs 5 crore.

The IDMA has also sought a plot of land from the government of Gujarat to set up a technology park.

"We have already formed a non-trading company, and have 35 members already," he said.

Chairman of Zydus Cadila Healthcare Pankaj Patel said that it is unfortunate that although Gujarat is the biggest producer of pharmaceuticals and drugs in the country, not a single research institute has been set up in the last 30 years.

"The highest impact of globalisation has been on the pharmaceutical industry and I believe the state government must provide the required infrastructure such as power, water and the like for the industry to help face the scenario," he said.

Gujarat industries minister Anil Patel, while stating that the government wants to support and promote the pharmaceutical industry, added that lowering interest rates for TUF can be considered.

"The government is setting up a bio-technology park near Vadodara and is open to private management of the park as well," Patel said.

Gujarat chief minister Narendra Modi, who inaugurated the new IDMA premises, said that the Cabinet has cleared the Industrial Park Act.

Urging pharmaceutical companies to promote herbal products, he said: "There is a need for packaging and marketing these well. The herbal product market of the world is huge and this must be tapped by Gujarat's pharmaceutical companies," he said.

Earlier, IDMA (Mumbai) president Yogin Majmudar said that the state government must exempt units of GIDC areas from securing an effluent treatment non-objection certificate in case of changing a product.

It must also increase the duration of water consent licence from the existing one year to two years.

"Securing other licences, too, take around six months and these bottlenecks need to be cleared," he said.