APPCB slaps notices on 12 bulk drug units

Managements hopeful of resolution to present stand-off

The Andhra Pradesh Pollution Control Board (APPCB) has issued closure notices to 12 bulk drug units located in Hyderabad while directing their managements to stop all the industrial activities by July 23, 2012.

The move will impact the ongoing operations of these units, which together have a work force of about 8,000 employees. However, some of the top executives of these units, whom Business Standard spoke to, said that they were hopeful of a resolution to the current stand-off soon.

When contacted to know the implications of the PCB move, a senior management representative of Aurobindo Pharma Limited said they would clarify their position on Monday.

 

Of the 12 bulk drug manufacturing units currently under the PCB axe, two units belong to Aurobindo Pharma while four units are of Hetero Drugs Limited, which are the two major pharmaceutical players.

The units involving other companies are Crix Pharmaceuticals, Covalent Laboratories, Divis Pharmaceuticals, Krishna Pharmaceuticals, Innogent Laboratories and SMS Pharma Limited.

In a press release, the board said that these units were asked to close down under the Water & Air Acts in the interest of protecting public health and environment.

“After detailed discussions, the board is of the firm opinion that certain industries are violating the orders of the Supreme Court of India and the ban notification issued by the Andhra Pradesh government, among others,” the press release said.

Meanwhile, Mylan Laboratories Limited, one of the five companies that was asked to suspend operations by the Vizag district administration under Section 133 of the Criminal Procedure Code, said that the unit located in the Pharma City has not yet commenced commercial sales and therefore the temporary shutdown has no impact on its commercial operations.

“Mylan is one of the five companies in Pharma City which received the closure notice and the notice does not relate to any Mylan-specific issues. We anticipate that the government entities involved and the Pharma City will resolve this matter and their issues expeditiously,” Nina Devlin, vice-president (global communications), Mylan, said in a statement.