All governments, whether at the Central or in the states, have been launching several innovative healthcare schemes and projects. Health system of all states is slowly gearing up to achieve social health goals with technical expertise now available everywhere.
The Andhra Pradesh government for example, proposed Andhra Med Tech Zone (AMTZ) – is first of its kind in Asia – to have high scientific facilities that would help manufacturers reduce the cost. The brain behind this project, Dr. Jitendar Sharma, head of Health Technology Department under Ministry of Health & Family Welfare, Govt. of India who is also advisor, health & medical technology to Government of Andhra Pradesh, has been appointed as Chief Executive Officer for the AMTZ project. SMEpost.com caught up with Dr. Jitendar Sharma for a candid chat.
Here are the excerpts….
Q: How do you see the future of MSMEs in India?
A: There are two differences between MSME and other sectors.
Firstly, any work in MNCs requires high capital investment. But same can happen in MSME Sector with low investment. That means due to low investments, I will not have to take high loans. So the entire MSME sector implies low capital investment model.
Secondly, the main difference between established MNC and MSME is that MSME sector uses “bottom of the pyramid skills” that means more employment opportunities especially for those who are not skilled and specialized. So MSME has more social impact on society and commerce than MNC because MNC demands high skilled and specialised people. That is why boosting MSME is very important for industrial growth and promotion.
Q: What are the challenges in the MSME Sector?
A: There are three main challenges faced by MSME sector.
First, MSME manufactures goods which are being used in day-to-day life and do not have a brand value. People have a wrong perception that the MSME products are sold at a low-price and hence are not reliable. However all goods produced in MSME sector take a year of hard work and help from financial institutes for production. Hence it is not necessary that every good produced by MSME is low valued.
Second challenge is that MSME sector is not only competing with Non-MSME sector but with countries which are making cheap goods too.
Third challenge in MSME sector is lack of high scientific knowledge because it required lot of money to acquire talent, machinery, patents etc.
Q: Andhra Pradesh Government appointed you Advisor for Health and Medical Technology in October last year. So, what is the scope for MSMEs in medical sector?
A: It was first time in history that honorable chief minister of state appointed an advisor for health and medical technology. There was a reason for that. Now a days, Indian Government is setting up a CT Scan machine in every district hospital. Machine would be under PPP (Public Private Partnership) Model. Private partner costs us Rs 1000 per CT scan. But since CT machine has to be imported, 60-70% from Rs 1000 goes out of the country. If same CT machine is built in India, we will not only save country’s money but also reduce the cost for CT scan. That is why ‘service delivery’ and ‘industry promotion’ is related to each other. That is why honorable CM appointed me as joint advisor of health and medical technology.
After my appointment, state government has implemented 12 programs in 8 months. In Andhra Pradesh, every test from radiology to blood is free and government pays for them. So for these works, the private service companies partnering with the government need support from MSME. Governments running program needs MSME Sector because these programs back-end support can come from MSME Sector.
Q: AMTZ aims to flourish as a hub of medical device manufacturing, putting India on the global map. So what are the key initiatives taken by you?
A: We make steel which contains titanium. We send our manufacturer abroad for some process for which we don’t have facility here. Like titanium and steel go abroad for low vacuum molding. When it gets back, we make implant with it, for surgery.
Low vacuum molding machine costs Rs 10 Crore. There are many tests for which we don’t have facility and one has to go abroad. AMTZ aims at providing all those scientific facilities and equipments in one manufacturing cluster, so that every manufacturer working in that cluster could get that facility on zero capital cost. So In AMTZ, we are trying to give every facility that is scientific and is urgently needed. With these facilities, cost of medical devices and equipments will reduce by 40 to 50%. KPMG has been chosen as project consultancy firm and will submit project report within 30 days. On basis of this report, we are planning for making 300 factories, 20 laboratories and warehouses etc in next one year.
Q: Quality is the biggest issue with MSME especially in manufacturing. How can it be addressed?
A: We are trying to make an office of regulatory authority at AMTZ so that manufactured machinery could get certificate and licensing there.
Second is Voluntary Certification. We, with Quality Council of India and Indian Medical Devices Manufacturing Association prepared some quality standard for medical device manufacturing named ICMED (Indian certificate for Medical Device).
Third is following the foreign standards. We are trying to bring agencies in AMTZ for measuring the foreign standard.
Q: Last question, SMEpost with WASME are going to organize an award function for facilitating shining star of Indian SME Sector, coming up on 9th July. What will you say?
A: You did not ask me what we can do for growth of MSMEs. I think you did not ask this question because you already know the answer. These awards are the only way to foster the growth of MSMEs. There is no encouragement than appreciation, recognition, awards etc. So there are many challenges but these awards are solution and suggestion that can propel the growth of MSME sector. The number of people, you will encourage and provide a platform will be better for MSME Sector. For this, I must Thank You.
Image Courtesy: Economic Times
