Maharashtra hikes drug license fee

Mumbai: The state government of Maharashtra has decided a 300-per cent hike in manufacturing license and inspection fees, and a 150-per cent increase in product license fee. The application fee for Form 24 and 24A has been increased from Rs 1,000 to Rs 3,000, as per the new fee structure, whereas the inspection fee has been tripled to Rs 750.

But the product manufacturing license fee has been scaled down from Rs 900 to Rs 750, as against the earlier Rs 300. It has been a contentious issue for quite a long time now.

To make good of the hike, the state government has given three more years validity for the new licences. That means the license period is increased to five years from the earlier two years, as stipulated by Rule 63 of the Drugs and Cosmetics Act. Notwithstanding this fact, the 1,000-member small-scale and loan-license manufacturers in Maharashtra have strongly opposed the hike.

Maharashtra, unlike any other Indian state, has the powers to amend the license fee structure, as it is bound by the Maharashtra Drugs and Cosmetics Amendment Rules, 1995 a state act and not by the Drugs and Cosmetics Act as far as manufacturing licenses are concerned.

In other words, for manufacturing 10 products in Maharashtra, a manufacturer has to shell out Rs 11,250 as against Rs 7,500 in other states. The difference in rates widen with the number of products. For instance, the fee charged by other states for 20 products is Rs 10,500, while it will now be Rs 18,750 in Maharashtra (see table).

State Food and Drug Administration (FDA) officials justified the price-hike in terms of better service offered to manufacturers. Products manufactured in Maharashtra have better acceptance than that of any other state in the country, FDA sources said.

(in Rs)

Form 24A	10 Products	20 Products	50 Products
Maharashtra	11,250	18,750	41,250
Other states	7500	10,500	19,500