Nine Pharma Units Shut Down in Kangra, ‘Inspector Raj’ and US-Aligned Standards Blamed
Micro, small, and medium enterprises (MSMEs) contribute nearly 40% of India’s pharmaceutical production, but in Kangra district, the sector is facing a severe crisis. At least nine units have already shut down, while several others are on the verge of closure. Industry experts warn that unless corrective measures are taken, Himachal’s pharmaceutical manufacturing base could weaken, potentially leading to shortages of essential medicines nationwide.
Owners of the affected units squarely blame “Inspector Raj” and the sudden enforcement of revised Schedule M norms—aligned with US standards—for the crisis. They argue that it is unrealistic for small and medium enterprises to meet compliance requirements within the limited timelines provided.
In Nurpur, four of the seven units have already closed, while in Sansarpur Terrace, once a hub of 15 factories, five have downed shutters, leaving more than 700 workers unemployed. The closed units include Maddox Unit 1, Maddox Injectables, Abaris Health Care, Rachil Remedies, and Dixon Pharma. Six more are reportedly on the brink of closure.
Industry associations allege that regulatory actions are frequently triggered by anonymous complaints filed by middlemen, who later offer contracts for costly plant upgrades and WHO certification, often running into crores of rupees.
Pharma manufacturers also claim they are forced to pay between ₹3 lakh and ₹10 lakh annually as a “safety fee” to avoid harassment, particularly in Kangra and Una districts. They have demanded a three-year grace period for facility upgrades, a 10-year compliance roadmap, subsidized loans of ₹10 crore per unit, and an inquiry into alleged collusion between middlemen and regulatory officials.
Additional requirements such as bio-availability and bio-equivalence (BA/BE) studies, which cost around ₹30 lakh per product, are also straining small businesses. Manufacturers argue that these rules disproportionately favor large pharma companies, pushing MSMEs into crisis.
The Himachal Drug Manufacturers’ Association has raised alarm over the climate of fear created by “Inspector Raj,” warning, “This is not ease of doing business.” The association cautioned that nearly 400 units in Himachal could shut down if relief is not granted, putting about 2,000 jobs at risk in Kangra district alone.
The collapse of MSMEs, which contribute around 40% of the country’s drug output, could drive medicine prices sharply upward and trigger widespread shortages across India.
700 Workers Jobless
In Nurpur, four of seven units have already closed, while Sansarpur Terrace, once home to 15 companies, has seen five closures—rendering more than 700 workers unemployed.
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