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Pimpri-Chinchwad civic body steps up to do its bit for ailing antibiotics firm

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The Indian Express                 14.03.2013

Pimpri-Chinchwad civic body steps up to do its bit for ailing antibiotics firm

 Hindustan Antibiotics 

Ten days after Newsline highlighted the plight of the country's first penicillin factory, a dream project of Pandit Jawaharlal Nehru, the Pimpri Chinchwad Municipal Corporation has decided to do its bit to bail out the ailing pharma PSU.

The PCMC will place orders for seven medicines from Hindustan Antibiotics (HA), Pimpri without calling for tenders.

"As of now, we have decided to purchase seven medicines without tenders," said Municipal Commissioner Shrikar Pardeshi, who added, "Hindustan Antibiotics is a national unit and we will do our best to help it at a time when it is going through a crisis."

On Tuesday, the civic chief held a meeting with HA management, HA union leaders and a couple of local corporators and conveyed PCMC's intention.

On March 4, Newsline reported that HA had run out of cash to pay salary to employees and purchase raw material. The report highlighted how the PCMC medical department had consistently been refusing to purchase medicines from HA or the civic-run YCM hospital. HA officials alleged that whenever they approached PCMC, officials demanded kickbacks including tickets to Singapore.

When Newsline had brought this to the notice of the municipal commissioner on March 3, he had said he was not aware of any such thing, but would do his best during his tenure to help the institute that has given Pimpri Chinchwad global fame.

The death of Gandhiji's wife Kasturba Gandhi in Pune in 1944 of complications that could have been prevented by penicillin is believed to have prompted Pandit Nehru, when he wanted the factory to be set up after Independence, to locate it in Pimpri.

In Tuesday's meeting, HA union leaders cited a government resolution making it mandatory for local self-government bodies to purchase medicines from public sector units. "However, PCMC has never followed this GR," said Arun Borhade, general secretary of HA Majdoor Sangh.

Pardeshi said based on this GR, PCMC will directly purchase medicines from HA. "It has been brought to my notice by our medical department that rates quoted by private companies are lower. Because of the GR, we will not be required to float tenders. We will purchase medicines directly from HA," he said.

PCMC health chief Shyamrao Gaikwad said they are not in a position to quote a figure for purchases to be made from HA. "As of now, we will have to look into our requirement and place orders. We are collating information from our departments," he said.

The civic chief said this was the first round of discussion and he would hold further dialogue with company officials. Appreciating PCMC's positive approach, Borhade said, "In spite of HA being a reputed national institute, the civic body had displayed apathy. But the civic chief is very helpful and we are sure PCMC will make large purchases which will ease the financial pressure on the PSU," he said.

Meanwhile, the management is not sure of when the revival package of Rs 502 crore announced by the Centre for HA will arrive, particularly as an earlier package, its first, had taken 10 years to reach.

The management, meanwhile, hoped local civic bodies and hospitals make purchases from the PSU to keep it afloat.

The HA Majdoor Sangh is headed by Supriya Sule, MP. NCP chief Sharad Pawar had earlier headed it for 13 years. When contacted, Sule said she was not aware of why the PCMC had not purchased medicines from HA in the past. As for the second revival package, Sule said she was pursuing the matter with the central government departments concerned.