Cuttack, June 28: Odisha State Medical Corporation Limited (OSMCL) is embroiled in a controversy with the Utkal Pharmaceutical Manufacturers' Association (UPMA).

The UPMA sought intervention of Orissa High Court against alleged violation of policy norms in the online bids invited for supply of drugs and other consumables on May 28.

The UPMA has alleged non-adherence to the state government's Industrial Policy Resolution and Micro, Small & Medium Enterprises Development Policy in its petition yesterday.

Adjudicating on it, the high court today sought a reply from the OSMCL by July 4, the last date fixed for submission of bids.

Incorporated in 2013, the OSMCL is a state government enterprise and is the central procurement agency for all essential drugs, equipment and other health commodities for all health care institutions under the state health and family welfare department.

The OSMCL had invited bids for four items under Schedule A and 15 items under Schedule B. While reserving the Schedule A for local MSME units having minimum turnover of Rs 35 lakh or more in any one of the last three financial years, for the Schedule B items minimum turnover eligibility was fixed at Rs 2 crore or more in the last three financial years.

In its petition, UPMA alleged that fixation of Rs 2 crore turnover criterion scotched the pros- pects of local MSME units from taking part in it.

After a preliminary hearing, the division bench of Chief Justice Vineet Saran and Justice B.R. Sarangi yesterday posted the matter to June 30 for hearing along with the reply of the OSMCL.

Accordingly, the court directed additional government advocate Bishnu Prasad Pradhan to take instructions by then as to whether the Rs 2 crore turnover criterion was applicable to local MSME pharmaceutical manufacturers.

The UPMA, which was represented by president Mihir Kumar Kanungo and general secretary Rajesh Kumar Kanungo, said the state government had declared pharma industry as a "priority sector" in its Industrial Policy Resolution.

Besides, while notifying a "pharma cluster" consisting of the MSME pharma industries in Cuttack and Bhubaneswar, the government had assured all possible help and marketing support for the growth of the cluster.

But, OSMCL's policies run contrary to it and betray a covert bid to eliminate the MSME's of the state from supplying common drugs, UPMA alleged.

Encouraged by the proactive policies and assurance of the state government, local entrepreneurs had modernised their pharmaceutical units by investing crores of rupees by availing loans from banks and financial institutions.

"If the tender conditions are not amended, all local MSME pharma units will face closure," UPMA said.

The association expected review of the tender terms of OSMCL.