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The Karnataka State Medical Supplies Corporation Limited (KSMSCL), the nodal agency for procuring and distributing medicines to district and taluk hospitals, initiated a tender worth Rs 650 crore for the purchase of 731 medicines. However, due to outstanding dues amounting to Rs 117 crore, pharmaceutical companies have been reluctant to participate in the bidding process.
The KSMSCL, a registered company under the Department of Health & Family Welfare Services, was unable to hold the tender in 2020-21 due to the COVID-19 pandemic. In the following year, the corporation failed to meet the demand for essential medicines.
Consequently, it owed Rs 117 crore to companies that had previously supplied medicines under the National Health Mission (NHM). This outstanding payment has created hesitation among reputable companies to bid on the tender for 2022-23.
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In a recent meeting, the higher authorities reportedly directed the DHOs to locally procure the necessary medicines. However, there are allegations that the DHOs are not adequately supplying drugs to meet the demand.
While many pharmaceutical companies have requested additional time to participate in the tender, there remains a risk of shortages for some medicines. Reliable sources indicate that if the tender is not finalized, re-tendering could take another three months.
KSMSCL Managing Director Rangappa S told Udayavani that the tender process has been postponed until July 5, 2023, after receiving government approval.
The hope is that this delay will provide the necessary time for companies to overcome their concerns and actively participate in the bidding process.