Himachal CM Jai Ram Thakur with Health officials.
A PUSH to manufacture Hydroxychloroquine (HCQ), permission to restart major units and one-time entry for workers from other districts and states. More than three weeks into the lockdown, Himachal Pradesh’s Baddi, the country’s largest pharmaceutical manufacturing hub, is opening for business — step by step.
Despite being a COVID-19 red zone — 10 of the state’s 40 cases are from the area — the state government has given “special permission with conditions” to pharma firms so that there is no shortage of HCQ and other essential medicines for the domestic and international markets, Chief Minister Jai Ram Thakur told The Indian Express.
Pharma giants Cipla, Dr Reddy’s, Torrent and Zydus Cadila are among the majors that have been permitted to induct workers from “nearby areas, inside and outside the state” to ramp up production. Sources said the orders were issued following directions from the Union Home Secretary.
The push comes after this manufacturing hub in Solan district reported a sharp dip in production following the lockdown that blocked the arrival of workers from villages in neighbouring Haryana and Punjab. Officials said around 180 of 370 pharma units have resumed production so far.
“The Centre asked us to see that production is resumed as there will be a huge demand from domestic and international markets. So, we contacted the companies for resumption of production. But we insisted that all employees go through medical tests and be accommodated properly, following safety protocols. They agreed,” Chief Minister Thakur said.
“Being the biggest pharma hub, it had to be put it into action as nobody in the country wants to face a shortage of medicines,” he said.
HCQ, an anti-malaria drug, is currently being recommended as a prophylactic (preventive medicine) for healthcare workers exposed to coronavirus patients or among family members of positive cases who are directly involved in caring for them.
Following requests from around the world, India has put aside an export ban and sent consignments to 13 countries, including the US, as a first step to supply 55 countries.
A key factor in resuming operations at Baddi, said an official, was the “special effort” needed to bring in labourers. “Many of the workers had left and some locals were not willing as they were promised one month’s salary during closure. The state had to make preparations for bringing in labourers from Punjab and Chandigarh. We appointed nodal officers to coordinate their travel,” an official said.
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According to officials, permission was given for one-time entry of workers into the Baddi-Barotiwala-Nalagarh (BBN) industrial area with an assurance from companies that they would be housed in specified accommodation with quarantine facilities till the lockdown is lifted.
The state’s notification also asked for “all precautions and advisories regarding containment of COVID-19, both at the place of work as well as the accommodation,” to be “meticulously followed”.
Providing an estimate of the workforce allowed, sources said that Cipla, which was working at 10-20 per cent capacity, has been able to move 157 employees across districts and states.
Dr Reddy’s two units, which was functioning at 10-15 per cent capacity, has got permission to induct 205 workers, they said. “Torrent, which was working at 10-12 per cent capacity, has got permission to move in 480 workers. And Zydus Cadila, which was working at 20-25 per cent capacity, has been allowed to move 389 employees,” sources said.
Officials said the production capacity has currently risen to 35 per cent for Zydus Cadila; 10-26 per cent for Dr Reddy’s; and, upto 30 per cent for Cipla.
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In a statement, Dr Reddy’s said: “We are following closely and complying with the advisories from local governments and health authorities and have issued guidance for remote working to all colleagues who can do so. All of our employees are working hard to address the challenges to work through the restrictions brought on by the lockdown in India and in other parts of the world, without compromising on safety.”
Officials said the “special permission” came with six conditions: the number of workers be kept to the minimum required; they are healthy and have no COVID-19 contact history or travel history to hotspots over the last 28 days; they are housed in identified accommodation; their transport is arranged by companies.
Baddi’s Drug Controller has also been directed to personally monitor the premises of units on a “regular basis” and “ensure that such units is able to ramp up the production of essential medicines”.
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At the same time, however, the state government is walking a thin line between opening the shutters and breaking the chain of virus transmission.
According to Industries Minister Bikram Singh, more relaxations are likely to be granted after Monday, based on the Centre’s guidelines. But the emergence of positive cases has forced the district administration to impose stringent sealing of certain areas, leading to the closure of around 70 units.
Himachal produces around 35 per cent of pharmaceutical products in Asia, and 60 per cent of India’s pharma formulation, according to the Department of Industries.
According to the Himachal Drug Manufacturers’ Association (HDMA), there are around 750 pharmaceutical units in the state — nearly half of them are concentrated in the BBN belt — with an annual turnover of Rs 25,000-30,000 crore.
But around 70 per cent of units in the area are MSMEs, according to the HDMA, and are mostly running at a production capacity of 15-25 per cent. Many of them — around 50-60 units — are currently manufacturing sanitisers, officials said.
For these units, getting workers from outside, and even within the state, is proving to be a difficult task. “Landlords have been asking their tenants to either stay at home and not report to the factories or vacate the rooms. In several villages here, people have put up barriers and are misbehaving with workers on their way to factories, resulting in further reduction of manpower,” Munish Thakur, general secretary of HDMA, said.
“We are facing issues but the government, too, is in a dilemma,” Thakur said.