The Works

| 2005 |

State hospitals run dry for lack of 'spirit'

As many as 30 hospitals attached to the Directorate of Health Services (DHS) have been in 'low spirits' for the past six months.

Acute shortage of denatured spirit at DHS hospitals has been triggered ever since its sole supplier, Nuvem-based Rhea Distilleries -- the only alcohol manufacturing unit operating in the State -- stopped production of alcohol since September 2004.

While DHS officials blame Rhea Distilleries for failing to supply denatured spirit, Rhea Distilleries Managing Partner Regan Henriques insists that since his company was unable to manufacture spirit, the DHS could easily have looked elsewhere to procure spirit.

The shortage of denatured spirit is of considerable concern, as it is considered a vital item in hospitals and the pharmaceutical industry.

“Denatured spirit is essential for cleaning wounds and during the administering of injections, as other antiseptics are not as efficient or reliable,” explains medical practitioner Dr Adolf Dias of Aldona.

Incidentally, while spirit is primarily used for potable purposes, pharmaceutical and industrial purposes, the spirit supplied to DHS is denatured, so that it cannot be used for potable purposes.

According to sources, denatured spirit for industrial purposes attracts a duty of about Rs 5 per litre, while it is about Rs 60 for potable purposes.

According to Mr Henriques, Rhea Distilleries used to earlier produce about 3,000 litres of alcohol a day.

“We used to supply DHS about 1,000 litres of denatured spirit per month. When necessary, we would even supply small quantities directly to DHS hospitals. Hospicio at Margao needed about 100 litres of denatured spirit per month, while Asilo hospital at Mapusa needed about 200 litres for six months,” informed Mr Henriques.

The shortage of spirit was triggered in 2004, when the union government started implementing a 5% mixture of spirit with petrol.

This is largely because spirit mixed with petrol drastically reduces pollution and that, petrol mixed with upto 30% spirit does not need any modification to the engine.

“But when this decision was implemented, huge amounts of alcohol were diverted to petroleum industries, which were offering a much higher price for alcohol," said Mr Henriques.

"As a result, there was a sudden shortage of both alcohol and its raw material, molasses. Now molasses is available only as a seasonal activity between October and March," he added.

"But since last year, we have been unable to produce alcohol due to shortage of raw material and the steep prices of alcohol," he said.

What also applied brakes was the high price of manufacturing alcohol in Goa, as compared to other states in India.

"This is because of pollution problems. The cost of treating effluents in Goa is very high. Every litre of alcohol generates about 10-15 litres of fully organic waste. But because of the quantity and colour of the waste, it becomes a big problem," explained Mr Henriques.

"The waste is a liquid effluent and if you leave it on the ground, it will seep into the water table, given Goa's porous soil. But most other states have clay soil, so even if you leave the effluent on the soil, it does not seep into the water table. Because of this, we have to convert all our effluents into organic manure."

Mr Henriques also identified the high fuel costs as another problem peculiar to Goa.

"We use furnace oil to fire our boilers, whereas alcohol plants in neighbouring states are mostly attached to sugar factories. The crushed sugarcane, or bagasse, is used to fire their boilers," said Mr Henriques.

"Because of these huge costs, we stopped production of alcohol. We informed DHS of our inability to supply them denatured spirit after September 2004," Mr Henriques said.

Since Rhea distilleries stopped supplying denatured spirit to DHS, health authorities and DHS hospitals had to turn to wholesalers or traders for local purchase.

But in many cases, traders have been reluctant to supply small quantities of denatured spirit to DHS hospitals, due to lengthy procedures and delayed payments, which sometimes are made only after a month.

In one such case, the Aldona Health Centre found it difficult to procure sufficient stocks of denatured spirit for its eight sub-health centres.

"There has been short supply of denatured spirit and I made local purchase for the sub-health centres. But there is a limit of Rs 1,000. Bills have to be sent to accounts section and cheques are then issued to the shops," explained Dr Lawanis, health officer at Aldona PHC.

"Such formalities can take over a month and some shopkeepers are reluctant to supply us on credit. But since I take personal interest, payments are to them within a month," Dr Lawnis added.

When contacted, Dr Prakash Kanekar, DHS Deputy Director of Medical Stores admitted that there was a shortage in the supply of denatured spirit.

"The supplier has not provided any denatured spirit to DHS. Moreover, denatured spirit cannot be procured easily, as special permission is needed from the Excise department. We cannot do anything if the sole supplier cannot provide us denatured spirit," Dr Kanekar said.

Director of Health Services Dr Arvind Salelkar told Herald that since Rhea Distilleries was unable to supply denatured spirit to DHS, various hospitals of the DHS were forced to make local purchases to tide over the shortage.

Dr Salelkar however insisted that he was monitoring the situation at DHS hospitals, which comprises two district hospitals, four urban health centres, five community health centres and 19 primary health centres.

And just when the future seemed bleak, another government policy then brought things back on the right track.

"A few months ago, the government stopped enforcing the 5% alcohol mixture with petrol, because of the shortage of alcohol. Now, we have now decided to re-start manufacturing alcohol," said Mr Henriques.

"A machine arrived at our unit on April 20 and once installed, it will be operational by April 25. Hopefully, we should start supply of denatured spirit to DHS by April 29," informed Mr Henriques.

"Even though the price of alcohol is still high and it is still not viable to manufacture alcohol, we will produce spirit and supply it to DHS on a no-profit basis," he added.

However in a strange twist, the union government has recently revoked its decision and has allowed the mixture of 5% alcohol with petrol.

As such, petroleum companies in different states have begun calling for tenders for the supply of alcohol.

In one such case, petroleum companies in Haryana last week called for tenders for the supply 4.13 crore litres of ethanol, which is to be mixed with petrol.

This staggering demand in one state alone could trigger yet another shortage in the availability of alcohol for the pharmaceutical and hospital industry.

But if a 5% alcohol mixture with petrol is considered bad enough for the availability of spirit in hospitals, the situation could well be catastrophic in the near future.

For according to sources, the current 5% alcohol mixture in petrol enforced by the Centre is only the beginning of a phased implemention, as the alcohol mixture in petrol is expected to rise to 20% in future.

And the cumbersome procedures in the manufacture and sale of alcohol will only evaporate any chance of easy availability of denatured spirit at DHS hospitals in the State.

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